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XRG Buys Shell's 16.67% North West Shelf Stake for $2 Billion
Abu Dhabi's XRG agrees to buy Shell's 16.67% stake in Australia's North West Shelf LNG project for $2 billion.
Key points
- XRG agreed to buy Shell's 16.67 per cent stake in the North West Shelf project for $2 billion.
- The sale covers the Karratha gas plant, offshore platforms and pipelines, permits and gas and condensate reserves.
- The deal remains subject to foreign investment approvals and pre-emptive rights held by other Shelf partners.
Why it matters. The deal may give XRG a foothold in Australian LNG supply for Asia-Pacific demand, but it remains subject to foreign investment approvals and partners' pre-emption rights.
Abu Dhabi's XRG agreed on Tuesday to buy Shell's 16.67 per cent stake in the North West Shelf gas project for $2 billion, Shell's first exit from the project's partnership after more than 40 years. XRG said the deal would give it a strategic position near Asia-Pacific LNG demand growth, and that it is its first investment in Australia after a failed $36b bid for Santos last year.
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XRG Buys Shell's 16.67% North West Shelf Stake for $2 Billion
Abu Dhabi's XRG has agreed to buy Shell's 16.67 per cent stake in the North West Shelf gas project in Australia for $2 billion. The project is operated by Woodside Energy. The agreement ends Shell's involvement of more than 40 years. XRG described the deal as a significant milestone in its plan to build an international business serving growing Asia-Pacific demand for LNG. It is XRG's first investment in Australia, following a failed $36 billion bid for Santos last year.