Abu Dhabi's XRG in Talks to Buy Stake in Shell-Led LNG Canada Project

Abu Dhabi's XRG, the international investment arm of state oil company ADNOC, is exploring an acquisition of a stake in LNG Canada, the Shell-led liquefied natural gas export project on Canada's Pacific coast, according to people familiar with the matter. XRG has been holding discussions with existing project backers, including PetroChina, about buying portions of their holdings.

The move fits XRG's stated ambition to become a major global natural gas supplier. The group has been expanding its LNG portfolio aggressively, having earlier agreed to take a 32% stake in upstream blocks supplying Argentina's first LNG export terminal and engaging in separate talks with Shell over a minority stake in the North West Shelf gas plant in Western Australia. No deal terms or stake sizes were disclosed for the LNG Canada discussions, and the parties involved asked not to be identified because the information is private.