Perth:XRG has announced an agreement to purchase Shell's stake in the North West Shelf project in Western Australia for $1.45 billion. The deal is pending regulatory approvals and standard closing conditions.
According to Wam, this acquisition marks XRG's inaugural investment in Australian LNG, signifying a key milestone in its international gas growth strategy. The purchase positions XRG strategically near growing demand in the Asia-Pacific region and offers access to significant LNG infrastructure and supply from a well-established energy project.
The North West Shelf Project, as Australia's first LNG project, has played a crucial role in the country's economic development for over forty years. It has supported domestic energy supply, job creation, international trade, and has contributed to Australia becoming a leading global energy exporter.
Mohamed Al Aryani, President of XRG International Gas, emphasized the historical importance of the North West Shelf investment in creating Australia's LNG industry. He expressed XRG's commitment to its long-term success and highlighted that the investment aligns with XRG's strategy to expand its international gas business in response to growing demand across Asia-Pacific. Al Aryani also noted the project's potential for immediate production, strategic infrastructure, and future development opportunities, fitting well with XRG's long-term goals.
He further remarked on XRG's understanding of the need to balance export success with local energy requirements. Continued investment in the North West Shelf is seen as a means to sustain domestic gas supply, bolster regional energy security, create jobs, and provide enduring economic benefits for Australia.