Shell has agreed to sell its 16.67% non-operated interest in Western Australia’s North West Shelf project to subsidiaries of XRG for US$1.45 billion, plus a payment linked to future milestones.
Announcing the agreement on 3 November, Shell said completion is expected in 2027 and remains subject to conditions including regulatory approvals. The transaction’s effective date is 1 January 2026; that is not its completion date.
The package includes upstream interests, pipelines and processing infrastructure. The buyers will assume decommissioning obligations and provide security for them.
The ownership change comes as declining output from the project’s original fields leaves spare capacity at Karratha Gas Plant. North West Shelf is moving towards a combination of its own production and processing gas for third parties.
For the supply chain, the announcement concerns ownership and future asset responsibilities rather than a new construction award. Shell says the disposal supports its allocation of capital to other integrated-gas operations.
Source: Shell, 3 November 2026.
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Image credit: Shell Centre, London, 11 April 2008. Company file photograph, not the North West Shelf facilities or this transaction. Marek Ślusarczyk / Wikimedia Commons, CC BY 3.0. Resized and compressed.
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