Apollo Global Management, Blackstone and KKR are the final bidders for a substantial portion of Shell’s 40 % interest in the LNG Canada liquefied natural gas export facility in Kitimat, British Columbia. The sale could involve up to 30 % of Shell’s holding, with an estimated transaction value of $10 billion to $15 billion that includes equity, debt and capital required for the project’s second phase.
Shell’s decision to monetize a large share of its LNG Canada stake aligns with its recent $16.4 billion acquisition of ARC Resources, a move that has strengthened the company’s upstream gas supply for the LNG facility. By divesting a lower‑return portion of its portfolio, Shell aims to free cash and sharpen focus on core LNG and gas‑trading operations, reinforcing its integrated gas strategy.
LNG Canada began commercial production in June 2025 and represents a C$40 billion (US$28.8 billion) investment in Phase 1. The project is slated to double its capacity in a second phase, and its ownership group includes Mitsubishi Corp, Petronas, MidOcean Energy, PetroChina and Korea Gas Corporation (KOGAS).
Investors have responded positively to the news, with Apollo, Blackstone and KKR each leveraging capital from their insurance subsidiaries—Athene, Blackstone Credit & Insurance and Global Atlantic—to finance their bids. The single‑buyer approach is expected to streamline the transaction and accelerate the sale process.
Shell CEO Wael Sawan said the company is "very comfortable" with its 40 % stake in LNG Canada but is keen to generate cash from lower‑return parts of its business where it is not the natural owner. This statement underscores Shell’s intent to optimize its asset mix while maintaining a strong position in the global LNG market.
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