The acquisition, through wholly owned subsidiaries, includes a milestone-linked contingent payment, with the transaction effective from 1 January 2026 and expected to close in 2027, subject to regulatory approvals and other conditions.
XRG will also assume certain decommissioning obligations.
Shell’s stake
Shell’s non-operated stake includes associated upstream interests, pipelines, midstream infrastructure, offtake arrangements and related joint venture interests.
The deal comes as declining production from NWS’s original fields frees capacity at the Karratha Gas Plant, creating scope for third-party gas processing alongside the project’s own resources.
The transition follows Shell’s 2023 exit from the proposed Browse development, which envisaged transporting gas to Karratha for processing and export.
For Shell, the disposal reflects a strategy of concentrating investment on advantaged integrated gas positions and realising value from mature assets.
XRG’s decision
“The sale realises value from a mature, non-operated asset and supports Shell’s strategy,” said Cederic Cremers, Integrated Gas President, Shell.
Shell continues to operate QGC and Prelude FLNG in Australia, develop Crux and hold joint venture interests in Arrow Energy and Gorgon.
Globally, it targets annual LNG sales growth of 4-5% through 2030.
For XRG, the acquisition adds exposure to established Australian LNG infrastructure and a project adapting its business model to accommodate third-party supply.
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