Royal Dutch Shell has engaged financial advisers to explore potential divestment of its approximately 40% interest in the C$40 billion LNG Canada project, according to sources familiar with the matter. The move follows similar outreach by partner Mitsubishi Corp on its 12.5% stake. Shell’s review aims to reallocate capital toward lower-carbon energy ventures and pay down debt stemming from recent acquisitions. The oil major could command a premium for its export facility position in British Columbia, where final investment decision in 2018 underwrote two 6.5 million tonnes per annum liquefaction trains. Any transaction could reshape portfolio funding, with Shell having generated over $25 billion in free cash flow from its LNG business over the past three years.

Shell and partner ExxonMobil have abandoned plans to sell their combined upstream gas interests in the U.K. North Sea to Viaro Energy after nearly nine months of negotiations. Regulatory delays at the Competition and Markets Authority, coupled with weak gas prices in Europe’s benchmark Henry Hub-linked contracts, undermined the deal’s commercial rationale. The assets—comprising fields and infrastructure handling approximately 1.2 billion cubic feet per day at peak production—will remain on Shell’s books. Management indicated it will pursue alternative options, including smaller disposals or farm-down agreements, to achieve its target of $15 billion in upstream divestments by the end of 2026.