Abu Dhabi’s XRG has agreed to acquire Shell’s 16.67% stake in the North West Shelf project in Australia for $1.45 billion. This marks XRG’s first asset in the country and the first major acquisition by an ADNOC subsidiary in Australia’s liquefied natural gas (LNG) sector.
The North West Shelf project is one of Australia’s largest LNG export facilities, involving multiple joint ventures with companies like Woodside, Chevron, BP, Shell, China’s CNOOC, and Japan LNG, which includes Mitsui and Mitsubishi. The transaction is expected to close in 2027 and includes an additional milestone-linked contingent payment on top of the base consideration. XRG will also assume all decommissioning obligations under the agreement.
XRG recently established two local holding companies in Australia, registered with the Australian Securities and Investments Commission. Earlier in 2025, the company made an on-market offer for Australia’s Santos for $18.7 billion, which it terminated in mid-September after failing to agree on commercial terms.
Woodside announced in its third-quarter results late last month that it plans to shut a second train at the North West Shelf facility in 2027. The shutdown comes as production declines from legacy fields and the facility seeks more third-party gas to process until the Browse fields come online. Shell stated it continues to invest in LNG and integrated gas globally and aims to grow LNG sales by 4-5% per year to 2030.