Shell in Talks With Adnoc, Others Over LNG Plant Stake Sale
(Bloomberg) -- Shell Plc is in talks with companies including a unit of Abu Dhabi National Oil Co. over a minority stake in its A$34 billion ($24 billion) North West Shelf gas export plant in Western Australia, according to people with knowledge of the matter.
The sale discussions with Adnoc’s XRG investment arm and suitors including Midocean Energy LLC, which counts Saudi Aramco as an investor, are at initial stages, said the people, who have direct knowledge of the negotiations.
Other potential buyers are also circling, including a consortium of Japanese companies that comprises Tokyo Gas Co. the people said, asking not to be named as the conversations are not public.
Shell has been doubling down on LNG, but Bloomberg reported in September that it would explore a sale of its 16.67% stake in North West Shelf due to a planned transition into a so-called third-party tolling facility, where buyers pay a fee to liquefy the gas. It sold its share in the Browse LNG development in 2023, which would feed gas into North West Shelf.
“Shell regularly assesses its portfolio to inform disciplined capital allocation,” a Shell spokesperson said. “We continue to work closely with the North West Shelf partners to deliver value, maximize future performance and meet the needs of our customers.”
XRG declined to comment on market speculation. The company has been on the hunt for a way to enter the fast-growing Asian LNG market, but last year abandoned plans to buy Australian exporter Santos Ltd.
Midocean and Tokyo Gas also declined to comment.
Woodside Energy Group Ltd. operates North West Shelf, Australia’s oldest and largest liquefaction plant. Other partners include BP Plc, CNOOC Ltd. and a venture between Mitsui & Co. and Mitsubishi Corp.
(Updates with details of talks with a Japanese consortium in the third paragraph.)
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