Australia's Wesfarmers to sell LPG, LNG distribution businesses
(Reuters)—Wesfarmers will sell its liquefied petroleum gas (LPG) and liquefied natural gas (LNG) distribution businesses to Supagas and Clean Energy Fuels Australia, respectively, for an undisclosed sum, the conglomerate said on Thursday.
Wesfarmers, whose other businesses span pharmacies to lithium mining, has seen its gas-related WesCEF unit's operating earnings from its LPG and LNG businesses decline 3.7% in the first-half of fiscal 2024 owing to weak commodity prices and high natural gas costs in Western Australia.
Supagas is Australia's third-largest LPG supplier, while Clean Energy Fuels Australia provides sustainable fuel services for power generation in remote off-grid mines and for industrial applications.
Financial details of the deal were not disclosed.
It will continue to house the Kleenheat natural gas retailing business, electricity business and its LPG and LNG production facility in Kwinana, in Western Australia, the company said.
The sale of LPG and LNG businesses is expected to close by September and November, respectively, said Wesfarmers, which also owns an office supplies chain and industrial chemicals business, among others.
(Reporting by John Biju in Bengaluru; Editing by Rashmi Aich, Savio D'Souza and Nivedita Bhattacharjee)
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