Abu Dhabi's XRG Snares Shell's Stake in Australia's North West Shelf for $1.45B

Abu Dhabi's XRG has agreed to buy Shell's stake in the North West Shelf project for $1.45 billion, landing the ADNOC subsidiary its first asset in Australia. The package covers a 16.67% non-operated interest in one of Australia's biggest liquefied natural gas export facilities. Shell said the deal also carries an extra milestone-linked contingent payment on top of the base price, and XRG will swallow all decommissioning obligations.

The North West Shelf is a knot of interconnected joint ventures, with Woodside, Chevron, BP, Shell, China's CNOOC and Japan LNG — a grouping that includes Mitsui and Mitsubishi — all holding pieces. Woodside operates the facility. The sale is expected to close in 2027, giving both sides a long runway to work through approvals.

XRG isn't arriving cold. The company has already stood up two local holding companies in Australia, registered with the Australian Securities and Investments Commission — paperwork that telegraphs a longer stay. Its last big swing Down Under didn't land: in 2025 it made an on-market offer for Santos worth $18.7 billion, then walked away in mid-September after the two sides couldn't agree on commercial terms.

The asset XRG is buying comes with some wrinkles. Woodside said in its third-quarter results late last month that it plans to shut a second train at the North West Shelf in 2027, as legacy fields run down and the facility hunts for more third-party gas to keep processing until the Browse fields come online.

Shell isn't retreating from the fuel itself. The company said it keeps investing in LNG and integrated gas worldwide and aims to grow LNG sales by 4-5% per year through 2030. For XRG, the deal is a foothold in a key export hub — and a fresh test of whether Abu Dhabi can close an Australian energy bet after the Santos miss.