Shell to Exit Australia's North West Shelf Project in $1.45B Deal with XRG

Shell has agreed to sell its 16.67% non-operated interest in Australia's North West Shelf (NWS) LNG project to subsidiaries of XRG for a base consideration of $1.45 billion.

The deal covers Shell's interest in the North West Shelf project in Western Australia, including associated upstream interests, pipeline and midstream infrastructure, as well as interests in related petroleum and pipeline titles, project agreements and offtake arrangements.

North West Shelf is an integrated LNG and domestic gas development with liquefaction capacity of 14.3 million tonnes per annum and approximately 4.4 trillion cubic feet equivalent of remaining resources, according to XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC).

The acquisition would mark XRG's first investment in Australian LNG, providing access to existing LNG infrastructure and equity gas supply for customers in the Asia-Pacific region.

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