![Interested parties are lining up for a collection of AGL Energy's Queensland assets.](/content/dam/images/z/t/z/e/c/image.related.afrArticleLead.620x350.gtw78h.png/1485120626791.jpg)
AGL Energy is seeking buyers for a bunch of gas storage and exploration assets it inherited as part of the Mosaic Oil takeover in 2010.
The utilities giant is believed to be testing market interest in the Silver Springs gas storage facility in central Queensland's Surat Basin, the nearby Churchie gas field and some undeveloped discoveries and exploration ground.
It's understood the sale is only in its early stages, with confidentiality agreements still to be signed and an information memorandum yet to hit the market.
Sources said AGL has boutique firm Highbury Partnership assisting with the asset sale. Highbury declined to comment.
AGL acquired the assets in 2010 as part of its share-based acquisition of formerly listed Mosaic Oil Limited. Mosaic's drawcard - and by far its biggest asset - was the Silver Springs gas field, which AGL has since converted into a gas storage site to store gas for BG Group's (now Royal Dutch Shell's) QGC.
QGC uses the facility to support the Queensland Curtis LNG plant in Gladstone.
While it is well known AGL picked up Mosaic for about $150 million, it's expected to tell potential buyers that it has invested in the assets over the past seven years.
It's understood the sale is part of AGL's decision to exit upstream gas, as announced this time last year, rather than a move to get out of gas storage infrastructure altogether.
AGL is expected to retain its Newcastle Gas Storage Facility, which cost $310 million to build and opened in 2015.
AGL's camp is expected to target both mid-market infrastructure funds and energy and petroleum players for the sale.
It comes as AGL's rival, Origin Energy, works through its own asset divestments including both infrastructure and upstream gas assets.