IFM Investors calls in big guns for LNG plant venture in Queensland

An aerial shot of the Australia Pacific LNG facility on Curtis Island.

IFM Investors is understood to have hired Royal Bank of Canada and Lazard in its quest to buy the $US2.5bn-plus jetties and storage terminals connected to the Queensland Curtis Island LNG Plant. It comes as other parties line up for the assets and get set to find investment banks to represent them.

Also expected to be bidding for the Shell-owned assets is APA, although the listed pipeline owner is yet to hire an adviser. APA in the past has worked closely with Macquarie Capital, which may again be called upon for assistance.

APA previously purchased the pipeline of QCLNG that was sold in 2014 by BG Group for $US5bn. Shell later bought BG Group in a $US53bn global transaction.

Shell owns the two-train LNG liquefaction plant through its Queensland Gas venture. Queensland Investment Corporation is also likely to be in contention and in the past has worked closely with UBS. Earlier, some suspected IFM could be working with UBS, given that it has had a relationship with the bank in the past.

Shell is selling jetties and storage terminals at the QCLNG plant through advisory firm Rothschild, but some believe a formal sales process will not run.

The challenge for any acquirer will be gaining comfort over the amount of LNG going through the facilities. It is understood they will sell for at least $US2.5bn and will be accompanied by a take or pay contract for more than 10 years.

Any sale will occur next year.