Shell Sells North West Shelf LNG Stake to Abu Dhabi's XRG for $1.45 Billion
Shell is selling its 16.67% non-operated interest in the North West Shelf LNG project in Australia to the United Arab Emirates’ XRG for US$1.45 billion as part of its strategy to disciplined capital allocation and portfolio choices. Shell on Tuesday announced that its wholly-owned subsidiary Shell Australia Pty Ltd has signed an agreement to sell its 16.67% non-operated interest in the North West…
Shell has sold a 16.67% non-operated stake in its North West Shelf LNG project in Australia to Abu Dhabi-based XRG for US$1.45 billion. This sale is part of Shell's strategy to allocate capital wisely and make strategic portfolio choices. The agreement, signed by Shell's wholly-owned subsidiary Shell Australia Pty Ltd, includes a base payment of US$1.45 billion, with potential additional payments contingent on milestones.
Shell's Integrated Gas President, Cederic Cremers, stated that the sale reflects the company's commitment to disciplined capital allocation and focusing investment on its advantaged integrated gas positions. The exit from the North West Shelf project, which it has owned for 40 years, marks the end of Shell's involvement in the Woodside-operated LNG project.
However, Shell plans to maintain a strong presence in Australia, operating the Shell QGC project and Prelude FLNG facility in Western Australia, among other ventures. XRG, the buyer of Shell's stake, is looking to expand its international gas business serving the growing demand in the Asia-Pacific region.
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