Shell’s US$22 billion bet on Canadian LNG

Shell has agreed to buy ARC Resources in a transaction valued at about US$22 billion, combining a leading partner in Canada’s first operating LNG project with a major producer in the Montney shale, one of North America’s most productive gas regions.

The deal, which offers ARC shareholders a mix of Shell shares and cash at a premium to ARC’s recent market price, is designed to strengthen Shell’s Canadian gas position and support its integrated LNG portfolio. Both companies’ boards have backed the agreement, which is subject to shareholder and regulatory approvals and is expected to close in the second half of 2026.

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