AGL Energy has agreed to offload its gas assets in north Queensland to a consortium comprising of Chinese gas distributor Shandong.
The assets comprise of 50 per cent stakes in the Moranbah Gas Project joint venture and in the North Queensland Energy joint venture, and participation rights in an exploration licence in the Bowen Basin.
The energy producer and retailer did not disclose financial details of the transaction, but said the sale is not likely to result in any further impairments.
AGL has been looking to divest the assets after announcing in February 2016 that it would quit gas exploration and production activities, following a collapse in oil and gas prices.
At the time, AGL wrote down the value of its exploration and production assets by $640 million after walking away from the Gloucester coal seam gas project in northern NSW, pledging to stop production at NSW's Camden gas project in 2023 and putting its Queensland gas assets on the block.
The Moranbah venture comprises producing gas fields and related gas sales contracts, while the North Queensland Energy venture includes transport rights on a gas pipeline, a power-purchase agreement to run gas through the Yabulu power station and gas sales agreements.
Under the deal announced today, Shandong - which owns and operates 3,000 kilometres of gas pipelines, along with local firm Orient Energy - will buy AGL's interests in these assets.
The agreement will go through if AGL's current partner in the joint ventures, Arrow Energy, does not exercise its pre-emptive rights to that stake.
Arrow Energy is itself jointly owned by energy giant Shell and PetroChina.
By 1250 AEST, AGL Energy shares were up 1.64 per cent at $23.54 in a weak Australian market.
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