Adnoc’s XRG to buy Australian LNG stake for $1.5bn

Adnoc's investment arm, XRG, has reached an agreement to purchase Shell's stake in an Australian natural gas project for $1.5 billion. The move comes as XRG seeks to broaden its investment portfolio in response to disruptions in global energy markets due to the Iran war. The acquisition marks XRG's first investment in Australia's gas sector and is expected to enhance its access to customers in the Asia-Pacific region.

The deal, pending regulatory approval, will grant XRG ownership of a significant portion of the North West Shelf LNG project. This project boasts a liquefaction capacity of 14.3 million tonnes annually and remains rich in resources, with 4.4 trillion cubic feet equivalent of remaining reserves. XRG, which was established in 2024 as an international lower-carbon energy and chemicals investment company, aims to double its asset value within the next decade.

Adnoc's wholly-owned subsidiary, XRG, has already made several strategic investments globally. The latest acquisition reinforces XRG's growing presence in the Asia-Pacific region. The North West Shelf project, operational for over four decades, plays a crucial role in Australia's domestic gas supply and energy exports. It has contributed to domestic energy security, job creation, international trade, and Australia's position as a leading global energy exporter.

"By acquiring this stake, XRG is advancing its strategy to build a leading international gas business catering to growing demand across Asia-Pacific," stated Mohamed Al Aryani, president of international gas at XRG. "The North West Shelf project offers a unique combination of existing production, strategic infrastructure, and future upstream development opportunities, making it an ideal fit for our long-term objectives."

XRG emphasizes the importance of balancing export success with local energy needs. The company believes that ongoing investment in the North West Shelf can help maintain domestic gas supply, bolster regional energy security, generate employment, and deliver sustained economic benefits for Australia.