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Update: Market Chatter: Abu Dhabi's XRG Weighs LNG Canada Investment, Approaches Project Backers

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(Updates with company responses in paragraphs 3-4.)

Abu Dhabi's XRG is looking to expand its position in liquefied natural gas by considering a possible investment in the Shell-led (SHEL) LNG Canada project, Bloomberg reported Tuesday, citing people familiar with the matter.

The state-owned group has approached current project investors, including PetroChina, about acquiring part of their interests, although the discussions remain preliminary and may not result in a deal, the report said.

LNG Canada toldin an emailed response that it does not comment on the business interests, activities or decisions of individual joint venture participants.

Shell declined to comment in response to a request from, while XRG and PetroChina did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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