Shell and Exxon launch sale of gas storage business

UBS AG is advising Shell and Exxon on an infrastructure sale.

Royal Dutch Shell and Exxon Mobil have initiated the sale of German gas storage business BEB Erdgas und Erdoel GmbH.

The sale of the business, which is a joint venture between Exxon and Shell, could raise an estimated €1 billion, Reuters reported.

According to the newswire, sources close to the deal believe UBS AG, which is advising on the sale of the gas storage assets, has begun sending out "teaser" documents to potential buyers.

It was reported that the enterprise value of the sites will depend on how long-term the contractual agreements between BEB and its clients are. The BEB storage sites for sale do not include its largest facility in Dotlingen in Lower Saxony.

Expressions of interest in the sale are thought to be due on July 30th, Reuters said, with gas transmission operators, utilities and financial investors such as infrastructure funds expected to be interested in the assets.

In April this year, Exxon agreed to sell a 9.4 per cent stake in a Norwegian gas transport system to the infrastructure funds of UBS and French state-owned bank Caisse des Depots.