XRG to Buy Shell's $1.45B North West Shelf Stake
XRG to Buy Shell's $1.45B North West Shelf Stake
MONTREAL (Oil Monster): XRG, the international investment company launched by Abu Dhabi National Oil Company (ADNOC), has agreed to acquire Shell’s 16.67% interest in Australia’s North West Shelf (NWS) Project for a base consideration of $1.45 billion.
- XRG will acquire Shell’s 16.67% interest in the North West Shelf Project.
- The base consideration is $1.45 billion, subject to customary adjustments.
- The transaction is expected to close in 2027, subject to regulatory approvals and other conditions.
- The Karratha Gas Plant currently has LNG export capacity of 14.3 million tonnes per annum.
The transaction gives XRG exposure to an established Australian LNG export operation while allowing Shell to reduce its position in a mature, non-operated asset. The deal also reflects the different portfolio strategies of the two companies: XRG is expanding its international gas investments, while Shell is concentrating capital on integrated gas positions it considers more strategically advantaged.
XRG Expands International Gas Portfolio
The transaction will be carried out through wholly owned subsidiaries of XRG and represents a further expansion of its international natural gas portfolio.
Shell said the agreement carries a base consideration of $1.45 billion and is expected to close in 2027, subject to regulatory approvals and other customary conditions.
Shell Redirects Capital Toward Integrated Gas
Shell said the divestment gives the company an opportunity to realise value from a mature, non-operated asset while concentrating investment on integrated gas positions with stronger strategic advantages.
The company reiterated its ambition to grow LNG sales by 4% to 5% annually through 2030.
North West Shelf Remains a Major Australian LNG Asset
The North West Shelf development processes offshore gas from fields in Western Australia’s Northern Carnarvon Basin.
Its Karratha Gas Plant produces liquefied natural gas, liquefied petroleum gas, domestic gas and condensate.
The facility currently has four LNG processing trains with export capacity of 14.3 million tonnes per annum, along with two domestic gas processing trains.
The project is transitioning as production from its original gas fields declines and available processing capacity increasingly supports third-party gas resources.
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