Shell struck a deal

London — Shell has agreed a $16.4 billion deal to buy Canadian energy firm ARC Resources in a bid to boost its gas production and reserves.

The British energy giant said the acquisition will strengthen its resource base “for decades to come.”

It will also strengthen the business’s presence in North America, where it already operates gas plants.

The deal will combine ARC’s more than 1.5 million net acres of land with Shell’s approximately 440,000 in the Montney gas resource in Canada.

It will increase Shell’s production growth rate from 1% to 4% through to 2030, compared with 2025, according to the firm.

Shell’s chief executive Wael Sawan said acquiring the “high quality, low-cost” energy business “strengthens our resource base for decades to come.”

He added: “We are accessing uniquely positioned assets and welcoming colleagues that bring deep expertise which, combined with Shell’s strong basin level performance, provides a compelling proposition for shareholders.

Shell struck a deal

“This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions.”

Shell has been carrying out a new growth strategy focused on extracting more oil and gas, moving from a focus on green energy and reducing spending on renewables.

It hopes the shift will support production targets and drive greater returns for investors.

The announcement comes a few weeks after Shell said it had cut its gas production outlook for the first quarter of 2026 after being affected by the conflict in the Middle East.

The energy giant trimmed its guidance for integrated gas production after volumes from Qatar were particularly affected during recent attacks.

The deal will see ARC’s shareholders receive Canadian $8.20 and about 0.4 Shell shares for each ARC share.

Including about $2.8 billion in debt that Shell will take on, the acquisition is valued at about $16.4 billion.

It is expected to complete in the second half of 2026, subject to shareholder, court and regulatory approvals.