Adnoc’s XRG buys Shell’s Australian LNG stake for $1.5bn

The latest:

XRG, Adnoc’s international energy investment arm, has agreed to buy Shell’s stake in Australia’s North West Shelf LNG project for $1.5 billion, the company said on Tuesday. The acquisition is XRG’s first in Australia’s gas sector and is subject to regulatory approval. XRG said the purchase widens its access to customers across the Asia-Pacific region.

Details:

• The asset: North West Shelf is one of the world’s largest integrated LNG developments, with liquefaction capacity of 14.3 million tonnes per year, according to XRG. The company said the project holds 4.4 trillion cubic feet equivalent of remaining resources, combining producing assets with infrastructure and future upstream development options.
• The buyer: XRG was launched in 2024 as an international lower-carbon energy and chemicals investment company with an enterprise value exceeding $80 billion. It has acquired stakes in several global gas projects and says it plans to double its asset value over the next decade.
• The rationale: The company framed the purchase as part of a diversification push as global energy markets absorb disruption caused by the Iran war. XRG said the stake strengthens its position in the Asia-Pacific region, where it is building what it describes as a leading international gas business.
• Executive comment: Mohamed Al Aryani, president of international gas at XRG, said the asset combines immediate production, strategic infrastructure and future upstream development opportunities, calling it a strong fit with the company’s long-term ambitions. He tied the deal directly to rising demand across Asia-Pacific markets.
• The Australian angle: Al Aryani said XRG understands the importance of balancing export success with local energy needs, and that continued investment can sustain domestic gas supply, support regional energy security, create jobs and deliver lasting economic benefits for Australia.
• Project history: North West Shelf has been operating for more than four decades and plays a central role in Australia’s domestic gas supply and energy exports. XRG said the asset has supported domestic supply, employment and international trade, and helped make Australia a leading global energy exporter.
• Open questions: XRG did not disclose the size of the stake being acquired, the regulatory authorities whose approval is required, or a timeline for closing the transaction. No completion date was announced alongside Tuesday’s statement.
• Wider footprint: The Australian purchase follows XRG’s entry into Venezuela, part of a broader run of international acquisitions since its launch. Abu Dhabi has used the vehicle to assemble gas and chemicals positions outside the UAE rather than expanding solely through Adnoc’s domestic base.

Background:

Adnoc created XRG to carry its international investments in gas, chemicals and lower-carbon energy, separating overseas dealmaking from its domestic Emirati operations. The vehicle has since pursued stakes in gas projects across several regions as Abu Dhabi positions itself as a supplier to Asian demand growth.

Between the lines:

Buying into a 40-year-old export hub with 14.3 million tonnes of annual liquefaction capacity gives XRG producing volumes immediately rather than years of construction risk. Al Aryani’s emphasis on balancing exports with Australian domestic supply reads as pre-emptive reassurance to a regulator whose approval the deal still requires, and whose decision remains the main condition on closing.

What’s next

Watch for the regulatory decision that conditions the transaction, disclosure of the stake size and closing timeline, and whether XRG announces further Asia-Pacific gas acquisitions as it pursues its stated goal of doubling asset value within a decade.