Shell, an oil giant, has finalized a $22 billion agreement to purchase ARC Resources Ltd. This acquisition joins the lead partner in Canada’s initial operating liquefied natural gas project with a significant producer in a highly profitable shale region on the continent. Wael Sawan, CEO of Shell, mentioned that this move positions Canada as a core area for Shell and allows them to access strategically located assets while welcoming skilled colleagues. ARC Resources focuses on the Montney, a shale formation spanning northeastern British Columbia and northwestern Alberta. The deal values ARC Resources at $22 billion, including debt. Last year, ARC produced 374,000 barrels of oil equivalent per day prior to royalties.
The Montney’s value is reinforced by this deal, indicating potential for more merger and acquisition activity in the region. Shell and four Asian companies, including ARC, own the LNG Canada plant in Kitimat, B.C., with discussions ongoing to double the plant’s capacity. ARC is also involved in the LNG sector through various contracts, including supplying LNG Canada and partnering with Cedar LNG in Kitimat.
Shell had divested its oilsands holdings in Alberta in early 2025, focusing more on gas production and refining oil into higher-value products. The recent acquisition underlines the attractiveness of Canada for energy majors due to its high-quality resources. The transaction is set to close in the second half of this year, pending approvals. This acquisition follows other significant deals in the western Canadian shale gas sector, indicating growing interest and investment in the region.
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