XRG, the international energy investment unit of Adnoc, has agreed to acquire Shell’s stake in an Australian natural gas project for $1.5 billion, as the company seeks to diversify its portfolio amid disruption to global energy markets caused by the Iran war.
Abu Dhabi-based XRG will buy the stake in Australia's North West Shelf LNG project, marking its first investment in the country's gas sector and opening up greater access to customers in the Asia-Pacific region, the company said on Tuesday.
The deal, which is subject to regulatory approval, will give XRG access to one of the world's largest integrated LNG developments, with liquefaction capacity of 14.3 million tonnes per year and 4.4 trillion cubic feet equivalent of remaining resources.
XRG has been actively increasing its portfolio of investments globally and plans to double its asset value over the next decade. 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.
The latest acquisition strengthens XRG's position in the Asia-Pacific region. The North West Shelf project has been operating for more than four decades and plays a key role in the country's domestic gas supply and energy exports. The asset has supported domestic energy supply, jobs, international trade, and Australia’s emergence as a leading global energy exporter, XRG said.
“This investment advances XRG’s strategy to build a leading international gas business serving growing demand across Asia-Pacific. The North West Shelf combines immediate production, strategic infrastructure, and future upstream development opportunities, making it a strong fit with our long-term ambitions,” said Mohamed Al Aryani, president of international gas at XRG.
“XRG understands the importance of balancing export success with local energy needs. We believe continued investment in the North West Shelf can help sustain domestic gas supply, support regional energy security, create jobs, and deliver lasting economic benefits for Australia.”
XRG said the project offers a combination of existing production, strategic infrastructure and opportunities for future upstream development.
The company, which is wholly owned by Adnoc, has an enterprise value of more than $150 billion and invests across natural gas, chemicals and energy solutions.
