MADRID Feb 26 Spanish oil major Repsol
will announce the sale of liquefied natural gas assets to Royal
Dutch Shell later on Tuesday, sources with knowledge of
the deal said.
Repsol put a block of LNG assets based in Canada, Trinidad
and Tobago and Peru up for sale last summer to cut debt.
The sale to Shell does not include the Canadian plant
Canaport, one of the sources said, which some bidders had given
a negative valuation because of a glut in North American gas
Repsol, which owns 75 percent of Canaport, is likely to
write down the value of the asset, the source said.
Repsol and Shell declined to comment.
The Spanish company has been under pressure to reduce its
debt and hold onto an investment grade credit rating ever since
Argentina seized control of its majority stake in energy company
YPF last April.
It had net debt of 5 billion euros ($6.61 billion)at the end
of September, which will be significantly reduced after the sale
of the LNG assets. Repsol has said the assets have an
off-balance sheet debt of 3.6 billion euros and gross debt of 1
The LNG sale had drawn interest from a range of bidders
including China's Sinopec, Russia's Gazprom, GAIL Ltd
of India and GDF Suez of France.