XRG, the investment arm of UAE’s energy giant ADNOC, has agreed to acquire Shell’s interest in Australia’s North West Shelf project for $1.45 Bn, marking its first investment in Australian liquefied natural gas (LNG), according to a company statement on November 3.

The transaction is subject to regulatory approvals and customary closing conditions, XRG said.

The acquisition would give XRG a strategic position in the Asia-Pacific market, providing access to large-scale LNG infrastructure, existing production and equity LNG supplies, as well as opportunities for future upstream development.

Mohamed Al Aryani, President of XRG International Gas, said the investment would support the company’s strategy to build an international gas business to serve growing demand across the Asia-Pacific region.

Al Aryani added that XRG aimed to support the project’s long-term success while balancing LNG exports with Australia’s domestic gas requirements, regional energy security and economic development.

The North West Shelf, Australia’s first LNG project, has operated for more than four decades and has contributed to the country’s domestic energy supply, employment and exports.