Abu Dhabi’s XRG is said to eye stake in Shell-backed LNG Canada

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Photo by https://financialpost.com/tag/abu-dhabi/Abu Dhabi’s XRG is exploring the acquisition of a stake in the Shell PLC-led LNG Canada export project, as the state-owned group pursues plans to become a major global supplier of natural gas, people familiar with the matter said.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountXRG has been holding discussions with existing LNG Canada backers including PetroChina Co. about buying some of their holdings, the people said, asking not to be identified because the information is private.There’s no certainty the deliberations will lead to a transaction, the people said. Spokespeople for XRG, LNG Canada and Shell declined to comment, while a representative for PetroChina didn’t immediately respond to queries.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe potential purchase of a stake in LNG Canada fits with XRG’s ambition to become a top five supplier of natural gas and petrochemicals, following deals from the United States and Argentina to Africa. Backed by Abu Dhabi’s oil wealth, those ambitions are taking on even greater relevance as the war in the Middle East has highlighted the importance of supply from outside the region.LNG Canada began production from the facility at Kitimat in the country’s west in 2025, seven years after partners Shell, Malaysia’s Petroliam Nasional Bhd., PetroChina, Mitsubishi Corp. and Korea Gas Corp. approved the project at an estimated investment of $40 billion in 2018. The project, whose 14 million-ton annual capacity makes it one of the biggest operating plants in North America, supplies mostly South Korea, Japan and China.The partners are considering a multibillion-dollar project to double capacity, with a decision expected later this year, according to Kogas and Petronas.Gauging InterestSome of the partners are examining reducing their holdings. PetroChina, the country’s largest oil and gas producer, was gauging interest for its 15 per cent stake so that it can use the proceeds from the sale to help finance the facility’s second phase, Bloomberg reported in July.Besides PetroChina, Shell owns 40 per cent stake in the project, while Petronas has 25 per cent, Mitsubishi holds 15 per cent and Kogas has five per cent.The LNG Canada project has provided an important alternative for Asia’s major LNG importers after the Middle East conflict disrupted deliveries from Qatar, which supplied nearly a fifth of the global market last year. The war has also increased the urgency for the expansion as the disruption in the Strait of Hormuz potentially delays projects in Qatar, leaving the market facing tighter supply for years.XRG, meanwhile, has been snapping up assets across the world and is looking for more. The company would be interested in “exploring opportunities” in oil and gas production facilities and LNG in Canada, Musabbeh Al Kaabi, chief executive for upstream at parent Abu Dhabi National Oil Co. said in June.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Announced in 2024 as the international investment business of Adnoc, XRG has increased its holding in the Rio Grande LNG project in Texas, bought into a gas project in Argentina, owns stakes in facilities in Mozambique and Central Asia and acquired German chemical maker Covestro AG. But last year XRG had to drop a planned US$19 billion takeover of Australian natural gas producer Santos Ltd. in what would have been its largest deal to date.—With assistance from Robert Tuttle and Mitchell Ferman.We apologize, but this video has failed to load.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.