Abu Dhabi’s XRG, the international energy investment arm of ADNOC, has agreed to buy Shell’s stake in Australia’s North West Shelf (NWS) LNG project for a base consideration of about $1.45bn, with headlines rounding the package to roughly $1.5bn including a milestone-linked contingent payment.

Shell Australia is selling its 16.67% non-operated interest — including associated upstream, pipeline and midstream rights — to wholly owned XRG subsidiaries. The deal’s effective date is 1 January 2026; completion is expected in 2027, subject to regulatory approvals and other conditions.

NWS, operated by Woodside in Western Australia, is Australia’s oldest major LNG development. Partners have included Chevron, BP, MIMI (Mitsui–Mitsubishi) and CNOOC. XRG said the purchase is its first Australian LNG investment and gives access to about 14.3 million tonnes a year of liquefaction capacity — nearly 3% of global LNG capacity — plus remaining resources of around 4.4 trillion cubic feet equivalent.

Shell framed the sale as disciplined capital allocation: realising value from a mature, non-operated asset as NWS shifts toward a mixed production and third-party toll-processing model at the Karratha Gas Plant. Integrated Gas president Cederic Cremers said it supports focusing investment on advantaged integrated gas positions.

XRG International Gas president Mohamed Al Aryani said the deal advances a strategy to build an international gas business serving Asia-Pacific demand while balancing exports with Australia’s domestic supply, jobs and energy security. XRG has been chasing LNG capacity worldwide after a failed 2025 bid for Santos.

Shell retains a substantial Australian footprint through other assets such as QGC, Prelude FLNG, Crux, Arrow Energy and Gorgon. Closing still depends on clearances that can stretch multi-partner LNG joint ventures.

Source: XRG to Buy Shell Australian LNG Plant Stake for $1.5 Billion (Bloomberg)