Anglo-Dutch Shell has agreed to acquire the 95.9% of Norwegian small-scale LNG supplier Gasnor it does not own for NOK455.5 million ($74 million), the company said Wednesday.
Original author:
Press Release
Published: 12.07.2012
Shell currently owns 4.1% of Gasnor. Subject to Norwegian regulatory approval, the deal is expected to be closed in the third quarter this year.
Gasnor supplies LNG as fuel to industrial and marine customers, and operates an end-to-end supply chain, with three small-scale production plants and distribution assets, including two tankers, a fleet of trucks and a network of terminals.
"The acquisition of Gasnor is an important step for Shell towards creating an LNG sales business," the company said.
"Shell believes the LNG in transport sector will develop into a sizeable market and given its industry leading expertise across the LNG value chain, the extension into this market is a good fit for Shell," said Colin Abraham, Shell's vice president for downstream LNG. "The Gasnor acquisition provides Shell with invaluable customer and market insight built up over a number of years. This will help us to quickly develop and meet customer requirements for LNG as a transport fuel."
Shell said it hoped the acquisition would enable it to capitalize on Gasnor's experience in LNG sales and marketing, and combine it with its own reach to target European marine customers ahead of new environmental regulations that come into force from 2015. The regulations will apply across the Baltic Sea, English Channel and North Sea, and will require lower levels of emissions such as sulfur and nitrogen oxides.