- Shell agreed to sell its 16.67% stake in Australia’s North West Shelf LNG project to Abu Dhabi’s XRG for $1.45 billion.
- The deal gives XRG its first Australian asset, while the buyer will assume Shell’s decommissioning obligations.
Shell has agreed to sell its 16.67% non-operated interest in Australia’s North West Shelf liquefied natural gas (LNG) project to Abu Dhabi-based XRG for $1.45 billion. The transaction marks XRG’s entry into Australia’s energy sector and expands its international gas portfolio.
XRG Expands Into Australia’s LNG Market
The North West Shelf project ranks among Australia’s largest LNG export facilities. Its interconnected joint ventures involve Woodside Energy, Chevron, BP, Shell, China’s CNOOC and Japan LNG, which comprises Mitsui and Mitsubishi.
The transaction includes an additional milestone-linked contingent payment in addition to the $1.45 billion base consideration. Shell expects the deal to close in 2027. XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC), will also assume all decommissioning obligations associated with Shell’s stake.
XRG Strengthens Australian Investment Plans
The acquisition follows XRG’s growing interest in Australia’s energy industry. The company recently established two local holding companies in Australia and registered them with the Australian Securities and Investments Commission.
In 2025, XRG made an $18.7 billion takeover offer for Australian energy company Santos. However, it terminated the proposed acquisition in September 2026 after the parties failed to agree on commercial terms.
Analysts have also suggested that XRG could pursue an interest in the Browse gas fields, which could supply gas to the North West Shelf facility.
North West Shelf Faces Changing Gas Supply Conditions
Woodside recently announced plans to shut down a second processing train at the North West Shelf facility in 2027. The planned shutdown comes as production declines from older gas fields. The facility also seeks additional third-party gas supplies while it awaits production from the Browse fields.
Recent ownership changes have reshaped interests in the Browse project. BP has sold stakes to Japan’s Osaka Gas and South Korea’s GS Energy. Woodside also acquired PetroChina’s 10.67% interest after exercising its pre-emption rights.
Shell Maintains Global LNG Growth Strategy
Despite the divestment, Shell plans to expand its global LNG business. The company expects LNG sales to grow by 4–5% annually through 2030. In Australia, Shell continues to focus on the Taroom Trough in Queensland as a potential gas supply source for its Queensland Curtis LNG export facility.
The company also operates the Prelude floating LNG facility offshore Australia and holds an interest in Chevron-operated Gorgon LNG venture. The transaction gives XRG a foothold in Australia’s LNG industry while allowing Shell to adjust its asset portfolio and maintain its focus on global gas growth.