ADNOC's XRG to Buy Shell's Stake in Australia's North West Shelf LNG for $1.45 Billion

The North West Shelf, in Western Australia, has 14.3 million tonnes per annum of liquefaction capacity and 4.4 trillion cubic feet equivalent of remaining resources, according to Khaleej Times. The deal needs regulatory approvals and must meet customary closing conditions.

The project was Australia's first LNG venture and has operated for more than four decades. It supplies gas to the domestic market and to export customers.

Mohamed Al Aryani, president of XRG International Gas, said the company recognised how important the project is to Australia's economy and energy security, and that it was committed to the project's long-term success.

"The North West Shelf combines immediate production, strategic infrastructure, and future upstream development opportunities, making it a strong fit with our long-term ambitions," he said.

Al Aryani added that continued investment could help keep domestic gas supplies flowing, support regional energy security, create jobs and bring long-term economic benefits to Australia. XRG said it expects the project to serve domestic and export demand for decades.

Part of a Wider Gas Push

The purchase is a step in XRG's plan to build an international gas business, and it puts the company next to Asia-Pacific, one of the world's largest centres of energy demand. Buying into an operating asset gives XRG immediate production and existing export infrastructure, without the time and cost of building a greenfield LNG plant.

The deal comes during a busy week for Abu Dhabi's gas strategy at ADIPEC. ADNOC took a final investment decision on its Ruwais Diyab unconventional gas project, and ADNOC Gas signed a five-year supply deal with TotalEnergies for up to 1.6 million tonnes of LNG. UAE officials at the event have repeatedly pointed to power demand from AI and data centres as a reason to expand gas supply.

The acquisition also follows a period of disruption to Gulf energy flows through the Strait of Hormuz. Owning LNG supply outside the Gulf gives Abu Dhabi more ways to reach Asian buyers, though XRG has not described the deal in those terms.

The companies did not give a timeline for completion.