Scramble for gas assets pushes dealmaking to decade high

The global scramble for natural gas assets has turned the upstream energy sector into something resembling a high-stakes auction house, with buyers willing to pay whatever it takes to lock down supply. According to Wood Mackenzie, companies spent $32 billion on gas production project acquisitions in the first half of 2026, the highest level of dealmaking in the upstream gas sector in over a decade.

The average premium paid in gas-focused upstream deals hit 21% above pre-deal valuations. That’s the steepest markup since 2013, and it tells you everything about how tight the market for quality gas assets has become.

Shell’s mega-deal sets the tone

The crown jewel of this dealmaking frenzy was Shell’s $16.4 billion acquisition of ARC Resources, a Canadian producer operating in the prolific Montney shale formation. It was Shell’s largest transaction since it swallowed BG Group roughly a decade ago, a deal that itself was considered a generational bet on LNG.

North America becomes ground zero

Perhaps the most striking data point in this wave of activity is what’s happening with unconventional gas development on the continent. Some $30 billion was invested in North American unconventional gas resources during the first half of 2026. That figure is three times the recent three-year average.

ONEOK agreed to acquire Brazos Midstream’s Permian assets for approximately $4.43 billion, a deal backed by a $9 billion equity stake from Apollo Global Management.

Why the urgency

Energy security concerns have intensified across Europe and parts of Asia following years of geopolitical disruption to traditional supply routes. Countries that once relied on pipeline gas from a single supplier have diversified toward LNG, creating a structural increase in demand for liquefied exports.

Liquefaction terminals need feedstock, and that equation has made upstream gas assets strategically essential. Companies aren’t just modeling five-year cash flows when they bid on these properties. They’re thinking about twenty-year supply commitments to LNG offtakers in Asia and Europe, and pricing their bids accordingly.