25 July 2012

Repsol may sell New Brunswick LNG port #nlpoli

Spanish oil and gas company Repsol may be  looking to sell its  interest in the Saint John New Brunswick liquefied natural gas facility.  The New Brunswick Telegraph Journal reported the news on July 21:

On Thursday, the Spanish oil and gas giant told shareholders it was considering the idea of getting rid of some of its liquefied natural gas business to help shore up its finances.

This includes the potential sale of the Canaport terminal in east Saint John, in which it has a 75 per cent stake. Irving Oil, Limited, owns the other 25 per cent.

The move comes on the heels of the expropriation of Repsol’s majority interest in Argentinian oil and gas company YPF by the Argentinian government.  The government did not pay Repsol compensation for the seized assets.

Repsol is reportedly taking legal action and is looking at options to raise cash in the meantime.  One of those options includes divesting of North American natural gas assets.