(Reuters) - British gas giant BG Group Plc (L:BG) said on Tuesday it sold its wholly owned QCLNG Pipeline Pty Ltd subsidiary in Australia to APA Group (AX:APA) for $5 billion (3.19 billion pounds) .
The company said the deal is expected to be completed in the first half of 2015 and is conditional on the start of commercial LNG deliveries from the QCLNG export facility at Gladstone and on partner consent.
This is the biggest sale by BG since it earlier this year announced plans to look at asset sales across the globe to monetize some of its investments and return cash to shareholders.
BG Group had earlier expected to finalise a roughly $4 billion sale of gas pipelines in Australia's Queensland state by Christmas.
"The sale of the QCLNG pipeline is in line with our strategy to focus on BG Group's core areas of oil and gas exploration and production and LNG," Andrew Gould, interim Executive Chairman of BG Group, said in a statement.
BG said the transaction is expected to result in a post-tax profit of approximately $2.7 billion. The company also said it expects sale proceeds will be used to reduce net debt and fund future growth.
The company said the pipeline was built between 2011 and 2014 and has a current book value of $1.6 billion.
(Reporting by Shivam Srivastava in Bengaluru; Editing by Dan Grebler)