Abu Dhabi's state-owned XRG is weighing a move into LNG Canada, the export venture led by Shell Plc. People with knowledge of the situation say XRG has spoken with current partners, including PetroChina Co., about purchasing portions of their holdings. They also stressed there is no guarantee talks will culminate in a deal. Representatives for XRG, LNG Canada and Shell would not comment, and a PetroChina spokesperson did not respond immediately.
A stake here would line up with XRG's goal to rank among the top five suppliers of natural gas and petrochemicals, a push fueled by Abu Dhabi's oil revenues and deals stretching from the US and Argentina to Africa. That aim has gained urgency because the conflict in the Middle East highlights the importance of non-regional supply. XRG's deal pace has been brisk: in Texas, it boosted its stake in the Rio Grande LNG project and also picked up an interest in a gas project in Argentina.
The company also owns interests in facilities in Mozambique and Central Asia, and it acquired Covestro AG, the German chemical maker. Unveiled in 2024 as the international investment arm of Adnoc, XRG also had to abandon a planned $19 billion acquisition of Santos Ltd. last year. In June, Musabbeh Al Kaabi, Adnoc's upstream chief executive officer, said XRG would be interested in "exploring opportunities" in Canadian LNG as well as oil-and-gas production sites.
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LNG Canada began output in 2025 from Kitimat and, at 14 million tons a year, is among the largest operating plants in North America. Cargoes go mainly to South Korea, Japan and China. Ownership today is Shell at 40%, Petronas at 25%, Mitsubishi at 15%, PetroChina at 15% and Kogas at 5%.
The partners are studying a second phase that would roughly double capacity, with Kogas and Petronas signaling a decision is anticipated later this year. Some owners are also rebalancing. In July, Bloomberg reported PetroChina was gauging interest in its 15% stake, aiming to use proceeds from a sale to help fund Phase 2.
For major Asian buyers, LNG Canada has offered a key alternative as the Middle East conflict has disrupted shipments from Qatar, which accounted for nearly a fifth of the global LNG market last year. The war has added urgency to expansion plans, since potential disruptions in the Strait of Hormuz could slow Qatari projects and leave the market tighter for years.
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