XRG buys Shell stake in Australia LNG project for $1.45 billion

Africa's LNG exports are projected to grow 175% by 2034, reaching 98 bcm, driven by investments in Mozambique, Nigeria, Angola, Libya, and Ivory Coast. Mozambique's TotalEnergies (TTE) and Eni (E) projects, along with ExxonMobil's (XOM) Rovuma LNG, are key drivers. Nigeria's Train 7 expansion and Senegal-Mauritania's GTA project also contribute. TotalEnergies' Namibia projects and Tanzania's $42B LNG project, involving Equinor (EQNR) and Shell (SHEL), are notable.

The UK government introduced the Energy Independence Bill, ending new oil and gas exploration licenses but allowing additional production near existing fields via Transitional Energy Certificates. Shell, a 50% owner of Adura (a major North Sea producer), has significant interests in this legislation, as it could impact its 12 producing assets and development projects. The government estimates 60 million barrels of oil could be unlocked under the new rules.

Shell Australia agreed to sell its 16.67% stake in the North West Shelf (NWS) project to XRG P.J.S.C. subsidiaries for $1.45 billion, with a potential milestone-linked payment. The deal, subject to regulatory approval, is expected to close in 2027. Shell's stake includes upstream interests, pipeline, and midstream infrastructure. The NWS project is led by Woodside, with Chevron, BP, MIMI, and CNOOC as co-venturers. Shell aims to focus on advantaged integrated gas positions.

Shell signed a 150,000-tonne annual deal with Green Sky Manara for up to 75% of Morocco's planned 200,000-tonne sustainable aviation fuel output. The agreement covers sustainable aviation fuel, hydrotreated vegetable oil, bionaphtha, and biopropane. The plant, scheduled to start in 2028, may receive $135M in financing from the European Bank for Reconstruction and Development.

Shell's Q3 adjusted earnings nearly doubled year-over-year, reaching their highest since 2022, driven by stronger refining margins, higher LNG prices, and increased gas volumes. The company agreed to sell its 16.67% stake in North West Shelf LNG for $1.45 billion plus a milestone payment, expected to close in 2027. Shell is also reviewing its chemicals assets, with CEO Wael Sawan indicating they may not be a natural fit.

Shell Australia agreed to sell its 16.67% stake in the North West Shelf project to ADNOC's XRG for $1.45 billion, with an additional contingent payment. The sale, expected to close in 2027, aligns with Shell's strategy to focus on integrated gas positions. The NWS project is a joint venture involving multiple energy companies.