The Hague-based LNG giant Shell has entered into a deal to sell its liquefied petroleum gas (LPG) business in Hong Kong and Macau to DCC Energy.
The conditional sale is worth about of $150.3 million.
“This sale supports Shell’s strategic commitment to focus downstream activities on areas where we can be most competitive,” John Abbott, Shell Downstream Director, said in a statement.
“This is one of the last of our wholly owned LPG businesses and this sale is another step in Shell’s ongoing portfolio optimisation strategy to deliver $30 billion of divestments between 2016 and 2018,” Abbott added.
As part of the sale, Shell will be entering into a long-term brand license agreement with DCC Energy that will ensure the Shell brand remains visible across the LPG business in Hong Kong and Macau.
All local Shell LPG employees affected will be given an option to transition to DCC Energy, according to the company.
The sale is expected to conclude in the first quarter of the next year, subject to the receipt of regulatory approvals.