BG Group plc (LSE: BG.L), a world leader in exploration and LNG, announces it has completed the sale of its wholly-owned 543 kilometre pipeline network linking natural gas fields and the Queensland Curtis Liquefied Natural Gas (QCLNG) export facility to APA Group (ASX: APA).

This transaction has resulted in gross proceeds for BG Group of around US$4.6 billion. The proceeds reflect indexation movements to the long term tariff payable since the transaction announcement on 10 December 2014, and are in line with the $4.5 to $5 billion range provided in Q1 2015.

Tariffs payable on the pipeline are set to provide a fixed rate of return on the asset base with the primary tariff components escalating annually with US inflation indices. On an annualised basis, the full pipeline tariff is approximately US$360 million.

The sale proceeds will be used to reduce net debt and to fund future growth investment.

About BG Group and QCLNG

BG Group holds around 74% equity interest in the upstream resource and related infrastructure supplying QCLNG; and 100% of the project's common facilities on Curtis Island (including LNG storage tanks and jetty).

About APA Group

APA Group (ASX: APA) is Australia's largest natural gas infrastructure business and following the acquisition of the QCLNG pipeline, will own and/or operate around A$19 billion of energy assets. Its gas transmission pipelines span every state and territory on mainland Australia, delivering approximately half of the nation's gas usage. APA has direct management and operational control over its assets and the majority of its investments.

About BG Group

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a broad portfolio of business interests focused on exploration and production and liquefied natural gas. Active in more than 20 countries on five continents, BG Group combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.
BG Group trades in the US in the form of ADRs (American Depositary Receipts) on the OTCQX International Premier market under the symbol (OTCQX:BRGYY).

See the site of the the Queensland Curtis Liquefied Natural Gas (QCLNG)