Oil and gas company Shell is reportedly planning to sell its 16.67% interest in the A$34bn ($22bn) North West Shelf liquefied natural gas (LNG) export plant in Western Australia.

Citing people familiar with the matter, Bloomberg reported that the energy giant is seeking interest from potential buyers and that the stake could fetch more than $3bn.

Despite Shell's broader commitment to expanding its LNG operations due to the anticipated surge in gas demand over the coming decades, the company is considering an exit from the North West Shelf project.

This move is linked to the project's transition towards a third-party tolling facility model, which diverges from Shell's wider strategic objectives.

In this model, customers pay a fee to liquefy gas, a structure that reportedly does not align with Shell's portfolio plans.

Via an email, Shell said: “Shell regularly assesses its portfolio to inform disciplined capital allocation.

“We continue to work closely with the North West Shelf partners to deliver value, maximise future performance and meet the needs of our customers.”

This development follows Shell's divestment of its share in the Browse LNG establishment earlier in 2023, a project intended to channel gas to the North West Shelf facility and extend its operational lifespan.

Woodside Energy Group, the operator of the North West Shelf venture, has been actively working to consolidate its position in the asset to ensure the longevity of Australia's largest and oldest LNG facility.

In June, Woodside Energy, along with the Australian Government, announced an extension of the consultation period for environmental approval to extend the life of the North West Shelf LNG project.