Shell to Acquire ARC Resources in $16.4 Billion Deal to Expand Montney Gas, LNG Supply

Shell has agreed to acquire ARC Resources in a $16.4 billion deal, expanding its Montney shale position and strengthening long-term natural gas supply tied to LNG growth.

(P&GJ) — Shell has agreed to acquire Canada-based ARC Resources in a deal valued at approximately $16.4 billion, expanding its position in the Montney shale and strengthening long-term natural gas supply for LNG markets, according to an April 27 announcement.

The transaction includes about $13.6 billion in equity value, with Shell also assuming roughly $2.8 billion in net debt. The deal is expected to close in the second half of 2026, pending shareholder and regulatory approvals.

ARC produces roughly 370,000 barrels of oil equivalent per day and holds more than 1.5 million net acres in the Montney formation across British Columbia and Alberta. The acquisition will significantly expand Shell’s footprint in one of North America’s most active gas plays.

Shell said the deal will increase its production growth outlook through 2030 and add approximately 2 billion barrels of oil equivalent in proved and probable reserves.

Chief Executive Officer Wael Sawan said ARC’s assets complement Shell’s existing operations in the region and support its long-term strategy.

He said the assets are “high-quality, low-cost” and strengthen Shell’s position in Canada for decades to come.

ARC CEO Terry Anderson said the deal provides value to shareholders and positions the combined business within a broader global portfolio.

He said the transaction gives ARC’s assets a role in supporting future energy supply within Shell’s global operations.

Shell noted that ARC’s gas resources could support LNG growth in Canada, where the company already supplies feedgas to the LNG Canada export facility through its Groundbirch assets.

The company expects the deal to generate about $250 million in annual synergies within a year of closing.