Shell Agrees to Sell Australian LNG Project Stake for $1.45 Billion

Shell PLC (NYSE:SHEL) on Tuesday announced an agreement to sell its 16.67% non-operated stake in Australia’s North West Shelf (NWS) project to subsidiaries of XRG for $1.45 billion, plus a milestone-linked payment and customary adjustments.

The deal includes associated upstream assets, pipelines and midstream infrastructure.

Under the agreement, XRG will assume decommissioning obligations and provide related financial security. XRG is an international energy investor focused on natural gas, chemicals and energy solutions.

Sale Supports Shell’s Capital Allocation Strategy

The sale supports Shell’s capital-allocation strategy as NWS transitions toward third-party toll processing. The transaction is effective Jan. 1, 2026, and is expected to close in 2027, subject to regulatory approvals and other conditions.

Shell will continue investing in its global LNG business and targets annual LNG sales growth of 4% to 5% through 2030.

The company will retain its other Australian operations, including QGC and Prelude FLNG, the developing Crux project, and stakes in Arrow Energy and Gorgon.

North West Shelf Project Shifts Toward Third-Party Processing

Located in Western Australia, the North West Shelf project is an LNG and domestic gas venture involving Woodside, Chevron, BP, Shell, MIMI and CNOOC.

Shell’s 16.67% interest includes upstream assets, pipelines, midstream infrastructure and related project and offtake agreements.

Declining output from the project’s original gas fields has freed up capacity at the Karratha Gas Plant, prompting NWS to expand its use of third-party toll processing alongside its own production. Shell also sold its stake in the Browse project in 2023.

Q3 Earnings Reach Highest Level Since 2022

Last week, Shell reported third-quarter adjusted earnings nearly doubled year over year to $10.81 billion from $5.43 billion.

Earnings reached their highest level since 2022, supported by stronger refining margins, higher realized LNG prices and increased Integrated Gas volumes amid the Middle East conflict.

SHEL Stock Price Activity: Shell shares are trading higher by 0.45% at $105.41 during premarket trading on Tuesday, according to Benzinga Pro data.

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