Shell considers selling its stake in Australia's North West Shelf gas project

Shell is exploring the sale of its stake in one of Australia's largest gas projects. The energy giant has entered early-stage discussions to offload part of its ownership in the North West Shelf facility. This move follows a broader shift in the company's strategy for its Australian operations.

The North West Shelf plant, located in Western Australia, is the country's oldest and biggest liquefaction facility. Operated by Woodside Energy, the A$34 billion (US$24 billion) project processes gas for export. Shell currently holds a 16.67% share in the venture.

Other major partners include BP, CNOOC, and a joint venture between Mitsui and Mitsubishi. Shell's potential sale comes as the company plans to transition the facility into a third-party tolling model. Early reports suggest Abu Dhabi National Oil Company and Midocean Energy LLC as possible buyers.

This is not Shell's first divestment in Australia's LNG sector. In 2023, the company sold its stake in the Browse LNG development. However, limited public data means the broader impact on Australia's LNG market remains unclear.

If completed, the deal would mark another step in Shell's restructuring of its Australian assets. The North West Shelf plant would continue operations under Woodside's management, with new investors potentially taking over Shell's share. The outcome of the talks could reshape ownership in one of the nation's key energy hubs.