-- Private equity giants Apollo Global Management (APO), Blackstone (BX), and KKR (KKR) are the final contenders in a high-stakes auction for a significant portion of Shell's (SHEL) 40% stake in LNG Canada, Reuters reported Thursday, citing sources.
The asset has become increasingly attractive as North American energy provides a stable alternative to supplies currently disrupted by the Iran war.
Located with direct access to the Pacific, LNG Canada is the first major North American facility capable of shipping liquefied natural gas directly to key Asian markets.
According to the report, the deal could be valued between $10 billion and $15 billion and allow Shell to monetize a portion of its interest and attract fresh capital for future expansions of the British Columbia-based facility.
Shell intends to sell its exposure to both the first and second phases of the project to a single bidder rather than splitting the stake, the report noted.
All involved parties, including the bidding firms, did not immediately respond to' request for comment.
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