Abu Dhabi’s XRG secures first Australian LNG asset in $1.45 billion deal.
Abu Dhabi: XRG has agreed to acquire Shell’s stake in Australia’s North West Shelf LNG project for $1.45 billion (Dh5.3 billion), marking the Abu Dhabi-based energy company’s first investment in Australian liquefied natural gas. The deal was announced on November 3 and remains subject to regulatory approvals.
Shell expects the transaction to be completed in 2027. The buyers will also assume decommissioning obligations associated with the asset.
According to a Shell press release, the company will sell its 16.67% non-operated interest in the North West Shelf (NWS) project. The agreement also includes an additional contingent payment linked to the achievement of certain milestones, over and above the base purchase price.
XRG is wholly owned by ADNOC and has an enterprise value of more than $150 billion. Other participants in the North West Shelf joint venture include Woodside, Chevron, BP, MIMI and CNOOC.
The project has an annual liquefaction capacity of 14.3 million tonnes and remaining resources of 4.4 trillion cubic feet equivalent.
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.
Australia’s first LNG project, the North West Shelf has been operating for more than four decades. Its Karratha gas processing facility is located about 1,260 kilometres north of Perth and produces LNG, domestic gas, condensate and liquefied petroleum gas (LPG).
Most of the project’s LNG output is supplied to customers in Japan. It has also delivered more than 6,000 petajoules of domestic gas to Western Australia.
