Apollo Global Management, Blackstone and are battling it out to acquire a significant stake in the mammoth LNG Canada project from energy major Shell, three people familiar with the matter said…
Apollo Global Management, Blackstone and are battling it out to acquire a significant stake in the mammoth LNG Canada project from energy major Shell, three people familiar with the matter said.
The trio, among the world's largest asset management firms, are the remaining bidders in the auction process, run by Shell, which also garnered interest from other large money managers and infrastructure investors. Any deal is expected to be valued well north of $10 billion and could reach as high as $15 billion, according to some of the people. Everyone who spoke with Reuters asked not to be identified because the bidding is confidential.
The sale will allow Shell, which on Monday announced a $16.4 billion deal to buy Canadian natural gas producer ARC Resources ARX.TO, an opportunity to sell a big portion of its 40% stake in LNG Canada and attract new capital to the export project ahead of the facility's possible expansion.
LNG Canada, which started production in June, is the first major liquefied natural gas facility in North America with direct access to the Pacific, allowing it to ship straight to buyers in Asia, the largest market for the super-cooled fuel.
Shell plans to sell exposure in the
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