Shell is in early discussions over a potential sale of its minority stake in Australia’s North West Shelf (NWS) liquefied natural gas project, a deal that could be valued at more than $3 billion.

Sources familiar with the talks say possible buyers include Abu Dhabi National Oil Company and MidOcean Energy. Shell holds about one-sixth of the NWS project, which is operated by Woodside Energy in Western Australia.

Shell said it regularly reviews its portfolio as part of its capital allocation strategy and continues to work with its partners at North West Shelf to maximise value and meet customer demand. The company did not directly comment on the reported sale process.

Market speculation about a possible exit has been building since last year. During Woodside’s recent results call, acting chief executive Liz Westcott confirmed that Shell had indicated interest in securing LNG offtake linked to its equity position, suggesting ongoing discussions among partners.

Despite expanding its LNG business globally, Shell is understood to be reassessing its position in the North West Shelf as the project prepares to transition into a third-party tolling facility. That operating model is seen as less aligned with Shell’s broader LNG strategy.

The North West Shelf LNG plant at Karratha is Australia’s oldest and largest liquefaction facility. Its current nameplate capacity stands at 14.3 million tonnes per year after one processing train was permanently shut down in 2025 due to declining gas supply.

Other partners in the project include BP, CNOOC, and Japan’s Mitsui and Mitsubishi.

If completed, the sale would mark another step in Shell’s ongoing reshaping of its Australian gas portfolio as it sharpens its focus on assets that better fit its long-term LNG strategy.