(Bloomberg) – Shell Plc is exploring the sale of its interest in the A$34 billion ($22 billion) North West Shelf liquefied natural gas export plant in Western Australia, according to people with knowledge of the matter.
Image: Woodside Energy
The gas major is testing the market for possible buyers of its 16.67% stake in the project, which could be worth more than $3 billion, the people said, asking not to be identified because they’re not authorized to speak to media.
While Shell is doubling down on LNG globally as it sees gas demand rapidly rising in the coming decades, the company is looking to exit North West Shelf due to its planned transition into a so-called third-party tolling facility, where buyers pay a fee to liquefy the gas. That type of model doesn’t fit with the group’s wider strategy and portfolio, the people said.
“Shell regularly assesses its portfolio to inform disciplined capital allocation,” the company said in an emailed statement. “We continue to work closely with the North West Shelf partners to deliver value, maximize future performance and meet the needs of our customers.”
The move to shop around its North West Shelf interest comes after Shell sold its share in the Browse LNG development in 2023, which would feed gas into the project on Western Australia’s coast to extend its life.
Woodside Energy Group Ltd., which operates North West Shelf, has been consolidating its holdings of the asset in order to continue operating the nation’s oldest and biggest facility for decades. But the company has struggled in the past to get partners aligned on the strategy.
Chevron late last year to offload its stake in the facility to Woodside, giving the plant’s operator 50% of the venture.
