Royal Dutch Shell said it's considering a sale of a Norwegian natural gas supplier, as the energy major continues to selectively dispose of assets.[THE HAGUE] Royal Dutch Shell said it's considering a sale of a Norwegian natural gas supplier, as the energy major continues to selectively dispose of assets.
The company is exploring a disposal of its Gasnor unit, a spokesperson confirmed in response to Bloomberg queries. Shell has approached infrastructure funds and private equity firms about a deal, people with knowledge of the matter said, asking not to be identified as discussions are private. Gasnor delivers liquefied natural gas to industrial and marine customers in Norway via 22 trucks and two tankers, according to its website. Shell agreed to take control of the business in 2012, paying US$74 million for shares it didn't already own at the time.
A potential sale comes at a time when Shell, like many of its peers, is looking for ways to transition to low-carbon energy. A string of divestments in countries including Argentina, Canada and the UK helped it cut greenhouse gas emissions in 2019, according to a report from the company. Shell sold part of its holding in the Nyhamna gas-processing plant in Norway last year.
The coronavirus outbreak has also exposed the vulnerability of some of the world's biggest fossil fuel companies, with the pandemic expected to hit long-term demand and reduce oil and gas prices. Shell's adjusted net income was US$638 million in the second quarter, down 82 per cent from the same period a year.