Shell is Acquiring a Canadian Energy Company for Nearly $14 Billion. Here's What it Could Mean for the Global LNG Market.

By Matt DiLallo – Apr 27, 2026 at 1:45PM ESTKey PointsShell is acquiring Canadian energy company ARC Resources in a nearly $14 billion deal. The acquisition will enhance Shell's ability to support the growth of LNG in Canada. The current war-driven disruption in the global LNG market will likely prompt more customers to diversify their supplies outside the Middle East. Shell (SHEL 2.82%) is making a big splash. The global integrated energy giant has agreed to acquire Canadian energy company ARC Resources (ARX +20.90%) for $13.6 billion. The deal will significantly increase Shell's oil and gas production rate through 2030. The multi-billion-dollar deal comes amid major upheaval in global energy markets. The Strait of Hormuz closure by Iran has disrupted the flow of oil and liquified natural gas (LNG) out of the Persian Gulf. The deal enhances Shell's ability to supply the world with more LNG outside of the Gulf in the future. Image source: Getty Images. Drilling down into the deal Shell has agreed to buy ARC Resources in a cash-and-stock deal valuing the Canadian energy company at $13.6 billion, with the total value rising to $16.4 billion when accounting for ARC's net debt and leases. It's the European energy giant's biggest deal since it bought BG Group for around $80 billion a decade ago. ARC Resources currently produces about 374,000 barrels of oil equivalent per day (BOE/D). It operates in the same region as Shell's existing Groundbirch asset in British Columbia and the Gold Creek project in Alberta. The merger will add 1.5 million net acres in Canada to Shell's existing 440,000 net acre position, while boosting its oil-equivalent reserves by 2 billion barrels. Shell estimates that the acquisition of ARC Resources will significantly accelerate its production growth rate. At its Capital Markets Day last year, Shell expected to deliver 1% compound annual production growth through 2030. It now sees its output rising at a 4% compound annual rate during that time frame. ExpandNYSE: SHELShell PlcToday's Change(-2.82%) $-2.51Current Price$86.62Key Data PointsMarket Cap$249BDay's Range$86.09 - $89.4752wk Range$64.02 - $94.90Volume15MAvg Vol7.2MGross Margin16.66%Dividend Yield3.24% Supporting the growth of LNG in Canada The war with Iran has created a massive disruption to the flow of oil and LNG out of the Persian Gulf. Before the war, 20% of global oil and LNG supplies passed through the Strait of Hormuz each day. However, its closure has caused a 57% decline in oil production in the Persian Gulf. Meanwhile, LNG exports from Qatar tumbled by 6.9 million metric tons this month due to damage to facilities from the war and the inability to ship it through the Strait. The U.S. and Canada have helped offset the shortfall, with the U.S. on track to export a record 32.2 million metric tons through the first four months of this year, up 28% year-over year. Meanwhile, LNG Canada (40% owned by Shell) started producing last June. Shell's purchase of ARC Resources will support the growth of LNG in Canada. Shell and its partners are increasingly likely to approve a Phase 2 expansion of LNG Canada due to the disruption the war is causing to the global LNG market, as more countries will seek to diversify their supplies outside the Persian Gulf. That phase would double LNG Canada's capacity to 28 million tonnes per year by the early 2030s. Both Shell and ARC already supply natural gas to the facility, and the merger will enhance Shell's ability to supply more gas to an expanded export terminal in the future. Meanwhile, ARC Resources has a contract for 1.5 million tonnes per day at Cedar LNG, which is currently under construction and should come online in 2028. Strengthening its position in the Canadian LNG market Shell is a global leader in LNG. Its acquisition of ARC Resources enhances that position by increasing its LNG export volumes (via ARC's contracts) and future supply potential (through its gas resources). It puts Shell in a stronger position to capitalize on the current disruption in the global LNG market by increasing its ability to help customers to diversify their supplies with LNG from Canada. Read NextApr 10, 2026 •By Matt DiLalloBest Sugar Stocks for 2026 and How to InvestApr 7, 2026 •By Matt DiLalloBest Hydrogen Stocks to Buy in 2026 and How to Invest in ThemApr 5, 2026 •By Lyle DalyThe Largest Energy Companies by Market Cap in April 2026Apr 27, 2026 •By Catie HoganOklo Is Rising Again. Here's 1 Thing Investors Should Know About the Nuclear Stock.Apr 27, 2026 •By John BallardCIBRA Capital Buys Stake in Allied Gold Stock Apr 27, 2026 •By Ben GranShocking Layoffs (Up to 10%) Could Be Bearish for These 2 Tech StocksAbout the AuthorMatt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.TMFmd19X@MatthewDiLalloStocks MentionedShell PlcNYSE: SHEL$86.52(-2.93%)-$2.61Arc ResourcesTSX: ARX$31.13(+20.80%)+$5.36*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.