XRG, the international investment arm of ADNOC, has agreed to buy Shell’s 16.67 percent non-operated interest in the North West Shelf project in Western Australia for $1.45 billion, plus an additional milestone-linked contingent payment. The deal is XRG’s first investment in Australian LNG.
Shell Australia signed the agreement with wholly owned subsidiaries of XRG on 3 November 2026. The transaction has an effective date of 1 January 2026, is subject to regulatory approvals and customary closing conditions, and is expected to complete in 2027.
Shell’s stake covers more than a share of production. It includes associated upstream interests, pipeline and midstream infrastructure, varying participating interests in related petroleum and pipeline titles, project agreements, offtake arrangements, North West Shelf project companies and CNOOC related joint ventures. The buyers will also take on the decommissioning obligations attached to the interest and provide security for them.
XRG said the acquisition gives it a position close to Asia Pacific demand growth, with access to world scale LNG infrastructure and equity LNG supply. The facility can liquefy 14.3 million tonnes a year. Mohamed Al Aryani, president of XRG International Gas, said the company recognised the project’s importance to Australia’s economy and energy security and was committed to its long term success, adding that continued investment could help sustain domestic gas supplies and create jobs.
The North West Shelf is Australia’s first LNG project and has operated for more than four decades. It is made up of a number of interconnected joint ventures involving Woodside, Chevron, BP, Shell, MIMI and CNOOC. Woodside is the operator. The project is now moving toward third party toll processing, and Shell said the sale supports its shift toward what it calls advantaged integrated gas investments. Shell is aiming to grow LNG sales by 4 to 5 percent a year to 2030.
Shell remains a significant Australian gas player. It operates the QGC project in Queensland and the Prelude FLNG facility, is developing the Crux project, and is a joint venture partner in Arrow Energy and Gorgon.
The deal fits a wider pattern for XRG, which has been building an international gas portfolio and is already a partner in Eni’s Coral Norte FLNG development in Mozambique. For Woodside, a new Gulf state backed partner arrives at the Karratha processing hub just as the operator pushes its preferred Browse to North West Shelf concept, which would use existing Karratha capacity for Browse gas.
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