Shell Sells North West Shelf Stake to ADNOC’s XRG for $1.45 Billion
Shell PLC has agreed to sell its 16.67% stake in the North West Shelf Project to ADNOC’s XRG for $1.45 billion, plus potential milestone-based payments.
Shell PLC has agreed to sell its 16.67% stake in the North West Shelf (NWS) Project to ADNOC’s XRG for $1.45 billion, plus potential milestone-based payments. This move comes as part of Shell's strategic decision to focus on more advantageous integrated gas positions, as stated by Cédric Cremers, president of integrated gas at Shell. 123
The NWS Project, located in the Northern Carnarvon Basin off the coast of Western Australia, is a significant producer of LNG, domestic gas, and condensate. It boasts a liquefaction capacity of 14.3 million metric tons per annum (MMtpa), making it a vital asset in the global energy market. 1
This transaction is not just a financial deal but also a strategic one for both parties. For Shell, it represents a step towards its goal of growing LNG sales by 4% to 5% annually until 2030. Meanwhile, XRG sees this acquisition as a cornerstone in building a leading international gas business. 23
The sale is expected to close in 2027, contingent upon regulatory approvals. In the meantime, legal proceedings regarding the NWS Project Extension Commonwealth environmental approvals have already taken place in July 2026, while a separate legal proceeding concerning the State environmental approval is scheduled for the fourth quarter of 2026. 1
Additionally, planning is underway to retire a second LNG train in 2027, which will impact the operational landscape of the NWS Project. This retirement is part of a broader strategy to optimize operations and maintain efficiency. 1
Woodside Energy Group is also involved in the NWS Project, expecting to complete a swap transaction involving the project by the end of 2026. This swap transaction adds another layer of complexity to the ongoing changes in the project's ownership structure. 1
XRG’s interest in the NWS Project is noteworthy, given their previous attempt to acquire Santos, which was ultimately unsuccessful. This latest acquisition solidifies XRG’s position in the Australian energy sector and sets the stage for further growth. 2
Shell’s involvement in the NWS Project spans four decades, highlighting the significance of this asset to the company’s history and future plans. With the operating life of the NWS Project extending until 2070, there is ample time for both Shell and XRG to realize the benefits of this strategic move. 3
What we know
- - Shell will sell its 16.67% stake in the NWS Project to ADNOC’s XRG for $1.45 billion, plus potential milestone-based payments. 123
- - The NWS Project produces LNG, domestic gas, and condensate from the Northern Carnarvon Basin. 1
- - The NWS Project has a liquefaction capacity of 14.3 MMtpa. 1
- - Legal proceedings regarding the NWS Project Extension Commonwealth environmental approvals took place in July 2026. 1
- - A separate legal proceeding concerning the State environmental approval is scheduled for Q4 2026. 1
- - Planning is underway to retire a second LNG train in 2027. 1
- - The sale is expected to close in 2027, subject to regulatory approvals. 2
- - Shell plans to continue growing its LNG sales by 4% to 5% annually until 2030. 2
- - XRG aims to build a leading international gas business through this acquisition. 3
- - Shell has been involved in the NWS Project for 40 years. 3
- - The NWS Project's operating life is set to extend until 2070. 3
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Trust Score report
- confirmed
Shell PLC will sell its 16.67% stake in the North West Shelf (NWS) Project to ADNOC's XRG.
92% · supported by 3 - confirmed
The sale price is $1.45 billion, plus potential additional payments based on milestones.
92% · supported by 3 - likely
The NWS Project produces LNG, domestic gas, and condensate from the Northern Carnarvon Basin.
70% · supported by 1 - likely
The NWS Project has a liquefaction capacity of 14.3 million metric tons per annum (MMtpa).
70% · supported by 1 - likely
Woodside Energy Group expects to complete a swap transaction involving the NWS project by the end of 2026.
70% · supported by 1 - likely
Legal proceedings regarding the NWS Project Extension Commonwealth environmental approvals were held in July 2026.
70% · supported by 1 - likely
A separate legal proceeding concerning the State environmental approval is scheduled for Q4 2026.
70% · supported by 1 - likely
Planning is underway to retire a second LNG train in 2027.
70% · supported by 1 - likely
The deal includes associated upstream assets, pipelines, and midstream infrastructure.
70% · supported by 1 - likely
The sale is expected to close in 2027, subject to regulatory approvals.
70% · supported by 1 - likely
Cederic Cremers, president of integrated gas at Shell, stated that the sale supports Shell's strategy to focus on advantaged integrated gas positions.
70% · supported by 1 - likely
Shell plans to continue growing its LNG sales by 4% to 5% annually until 2030.
70% · supported by 1 - likely
XRG previously attempted to acquire Santos but was unsuccessful.
70% · supported by 1 - likely
This transaction is part of Shell's strategy for disciplined capital allocation.
68% · supported by 1 - likely
Shell has been involved in the North West Shelf project for 40 years.
68% · supported by 1 - likely
XRG aims to build a leading international gas business through this acquisition.
68% · supported by 1 - likely
North West Shelf Project's operating life is set to extend until 2070.
68% · supported by 1
