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Home Latest Energy News By Tsvetana Paraskova - Nov 03, 2026, 5:00 AM CST Shell is selling its 16.67% non-operated interest in the North West Shelf LNG project in Australia to the United Arab Emirates’ XRG for US$1.45 billion as part of its strategy to disciplined capital allocation and portfolio choices. Shell on Tuesday announced that its wholly-owned subsidiary Shell Australia Pty Ltd has signed an agreement to sell its 16.67% non-operated interest in the North West Shelf (NWS) project to wholly owned subsidiaries of XRG for a base consideration of US$1.45 billion, subject to customary adjustments, plus an additional milestone-linked contingent payment. “This agreement reflects our commitment to disciplined capital allocation and portfolio choices,” said Cederic Cremers, Shell’s Integrated Gas President.
“The sale realises value from a mature, non-operated asset and supports Shell’s strategy by focusing investment on advantaged integrated gas positions, as NWS transitions in the future towards a third-party toll-processing model.” The sale would mark Shell’s exit from the Woodside-operated LNG project after 40 years. Yet, Shell will maintain a strong presence in Australia, where it operates the Shell QGC project, which develops onshore gas resources in Queensland’s Surat Basin and supplies around 15% of Australia’s east coast gas market. Shell is also the operator of Prelude FLNG, its first operational floating LNG facility, located in the Browse Basin in Western Australia, and develops the Crux natural gas field as a longer-term backfill opportunity for Prelude FLNG.
Furthermore, Shell is a joint venture partner in Arrow Energy and Gorgon. XRG, the buyer of Shell’s stake in North West Shelf LNG, last year abandoned a bid to buy one of Australia’s top oil and gas companies, Santos, but it is constantly looking at opportunities in the gas value chain internationally. “This investment advances XRG's strategy to build a leading international gas business serving growing demand across Asia-Pacific,” Mohamed Al Aryani, President of XRG International Gas, said .
“The North West Shelf combines immediate production, strategic infrastructure, and future upstream development opportunities, making it a strong fit with our long-term ambitions.” Last year, Australia gave the final approval for the North West Shelf Project Extension that will see the operating life of the country’s biggest and oldest LNG plant extended to 2070. By Tsvetana Paraskova for Oilprice.com More Top Reads From Oilprice.com Oil Prices Bounce Back Following Reports of U.S. Strikes on Iran Japan to Tap $7 Billion from Government Fund to Subsidize Gasoline Prices European Gas Tops 101 Euros for First Time Since 2022 Join the discussion | Back to homepage Tsvetana Paraskova What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,...
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