OIL major Shell yesterday completed its $5.4 billion (£3.3bn) takeover of Spanish rival Repsol’s liquefied natural gas (LNG) business outside North America.
The deal, which was unveiled last February, will boost the UK-Dutch company’s LNG capacity by about 20 per cent and also increase its fleet of tankers capable of carrying the fuel.
Shell said: “Since the announcement of the transaction in February 2013, certain value adjustments have been made in accordance with the terms of the sales and purchase agreement.
“These are expected to lead to a net cash purchase price of $3.8bn, compared to purchase price of $4.4bn announced in February 2013, and balance sheet liabilities of $1.6bn, compared to $1.8bn at the announcement.”
The company added: “Shell’s capital investment in the fourth quarter of 2013 will reflect $3.4bn for this transaction, with the remainder of $2bn booked in 2014, of which $1.6bn is a non-cash item relating to finance ship leases.”
LNG has become an even more popular fuel since the shift away from nuclear power following the Japanese tsunami.
Last year Scottish Gas owner Centrica signed a £4.4bn deal to import LNG from Qatar, following an agreement with United States-based Cheniere Energy to buy shale gas that had been turned into a liquid for transport.