XRG Eyes Stake in Shell-Led LNG Canada Amid Middle East Supply Concerns

Abu Dhabi's XRG is exploring an acquisition of a stake in Shell-led LNG Canada, according to Bloomberg. This move would align with XRG's goal of becoming a top-five supplier of natural gas and petrochemicals.

The project, one of the largest operating plants in North America with 14M metric tons/year capacity, supplies mainly South Korea, Japan, and China. Partners are considering a multibillion-dollar expansion to double capacity, with a decision expected later this year.

LNG Canada is a joint venture led by Shell's 40% holding, while Petronas owns 25%, PetroChina and Mitsubishi each hold 15%, and Kogas has 5%. XRG has been acquiring assets globally and seeking more, with its parent Abu Dhabi National Oil Company expressing interest in exploring opportunities in oil and gas production facilities and LNG in Canada.