(Trinidad Guardian) One of Atlantic LNG’s shareholders, the French energy group GDF Suez, is in advanced exclusive talks to sell its ten per cent stake in the natural gas liquefaction facilities in Point Fortin to China’s sovereign wealth fund, China Investment Corporation, international wire services reported on Thursday. The transaction values the French company’s ten per cent stake in Atlantic LNG Train I at US$852 million. GDF Suez and CIC signed a Memorandum of Understanding on Wednesday in which they agreed that the Chinese company would purchase a 30 per cent stake in the exploration and production division of GDF Suez for US$3.26 billion.
As part of the transaction, CIC would also acquire from GDF SUEZ its ten per cent stake in the Train I of the Atlantic LNG liquefaction plant located at Point Fortin as well as production payments associated with Trains II, III and IV for an amount of US$852 million, according to the joint statement issued by the companies. Lou Jiwei, Chairman and Chief Executive Officer of China Investment Corporation, said: “We are pleased to cooperate with GDF SUEZ, a leading utility company worldwide. Our investment of 30 per cent in GDF SUEZ E&P would be our first sizeable transaction in Europe to date and, together with Atlantic LNG, one of our most important investments worldwide. We are committed to working with GDF SUEZ E&P to achieve its growth prospects.”
Gérard Mestrallet, Chairman and Chief Executive Officer of GDF Suez, said: “I am very pleased to enter into this MoU with CIC, a major investment force worldwide, which can help GDF SUEZ access substantial incremental financing resources and strong networks in China and throughout Asia. According to the Chinese news agency Xinhua, Beijing-based CIC was founded in September 2007, and is a wholly state-owned investment institution that makes long-term investments for the risk-adjusted financial returns under the Company Law of the People’s Republic of China.