Abu Dhabi's XRG company has begun explorations to buy shares in the Canada LNG export project, which is managed by Shell (Shell Plc). This state-owned group is striving to become one of the main suppliers of natural gas globally.
Details of XRG's Negotiations with Canada LNG Partners
XRG is negotiating with the current supporters of the Canada LNG project, including PetroChina Co., to purchase some of their shares. However, there is no guarantee that these negotiations will lead to a deal. Spokespersons for XRG, Canada LNG, and Shell have declined to comment on this matter.
Capacity and Investment of the Canada LNG Project
The Canada LNG project began operations in 2025 from facilities located in Kitimat, western Canada. Established in 2018 with an estimated investment of CAD 40 billion (USD 28.5 billion), this project has an annual capacity of 14 million tons, making it one of the largest active facilities in North America. This project primarily meets the needs of South Korea, Japan, and China.
The partners of this project are considering a multi-billion dollar plan to double its capacity, with a decision expected to be made this year. PetroChina, as the largest oil and gas producer in China, is evaluating interest in 15% of its shares to finance the second phase of this facility.
The Canada LNG project is emerging as a significant option for major LNG importers in Asia following disruptions caused by the war in the Middle East, which have impacted deliveries from Qatar. The war has also increased the necessity to develop this project, as disruptions in the Strait of Hormuz could delay Qatar's projects and leave the market facing supply shortages for years.
XRG is also acquiring assets worldwide and seeking more opportunities in oil, gas, and LNG production in Canada. This company, introduced as the international investment business of the Abu Dhabi National Oil Company (ADNOC), has invested in the Rio Grande LNG project in Texas and holds stakes in gas projects in Argentina as well as facilities in Mozambique and Central Asia.
