XRG buys Shell’s stake in Australia’s North West Shelf

Abu Dhabi: XRG has agreed to buy Shell’s stake in Australia’s North West Shelf LNG project for $1.45 billion

or Dh5.3 billion. The companies announced the deal on November 3. The purchase is still subject to regulatory approvals.

Shell expects closing it in 2027, and the buyers will take on decommissioning obligations. According to a press release by Shell, it will be letting go of 16.67% non-operated interest in the North West Shelf (NWS). It also mentions an additional milestone-linked contingent payment, on top of the base price.

This is XRG’s first investment in Australian LNG. ADNOC wholly owns the XRG, which reports an enterprise value above $150 billion. Woodside, Chevron, BP, MIMI and CNOOC are the other joint venture participants. The project has 14.3 million tonnes a year of liquefaction capacity and 4.4 trillion cubic feet equivalent of remaining resources. .Get it: Fast, verified news for FREE ... download the Gulf News app — simply click here.

Mohamed Al Aryani, President of XRG International Gas, said: “The North West Shelf investment created Australia’s LNG industry and continues to contribute to the nation’s economy, energy security, and prosperity.”“XRG understands the importance of balancing export success with local energy needs. We believe continued investment in the North West Shelf can help sustain domestic gas supply, support regional energy security, create jobs, and deliver lasting economic benefits for Australia,” he added.

North West Shelf is Australia’s first LNG project and has operated for more than four decades. The Karratha gas plant sits 1,260 kilometres north of Perth and produces LNG, domestic gas, condensate and LPG. Most LNG volumes go to customers in Japan. The project has supplied more than 6,000 petajoules of domestic gas to Western Australia..ADNOC’s XRG invests in Azerbaijan Gas Field, aiming to build “lasting value” for UAE.XRG completes Southern Gas Corridor deal, expanding Caspian gas route to Europe.

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