Shell to sell Hong Kong and Macau LPG assets

Shell is to sell its liquefied petroleum gas (LPG) business in Hong Kong and Macau. The energy giant announced the conditional sale to DCC Energy has a total value of $150.3 […]

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By Jonny Bairstow

Shell is to sell its liquefied petroleum gas (LPG) business in Hong Kong and Macau.

The energy giant announced the conditional sale to DCC Energy has a total value of $150.3 million (£120.5m).

It stressed the region remains an important market and said the deal would not have any impact on its other businesses.

As part of the agreement, Shell’s branding will remain visible across the LPG business after the sale, which is expected to conclude in early 2018, subject to regulatory approvals.

John Abbott, Shell Downstream Director, said: “This sale supports Shell’s strategic commitment to focus downstream activities on areas where we can be most competitive.

“This is one of the last of our wholly owned LPG businesses and this sale is another step in Shell’s ongoing portfolio optimisation strategy to deliver $30 billion (£24.05bn) of divestments between 2016 and 2018.”

Shell has agreed to sell a package of its assets in the UK North Sea for up to $3.8 billion (£3bn) and also expects to net $7.25 billion (£6bn) in a move towards oil sands divestment.