Royal Dutch Shell announced Monday it will acquire Canadian energy producer ARC Resources in a deal valued at approximately $13.6 billion, marking a significant expansion of the oil giant's operations in Western Canada.

The acquisition is expected to substantially boost Shell's production capacity at a time when Canada is looking to increase its energy exports. ARC Resources operates primarily in the Montney formation in northeastern British Columbia and northwestern Alberta, areas known for their natural gas and oil reserves.

The deal comes as global energy markets face continued volatility, with refiners experiencing increased profit margins amid ongoing geopolitical tensions. Industry analysts note that European markets are particularly strained, with companies competing intensively for fuel supplies including jet fuel cargo shipments.

The transaction reflects broader trends in the energy sector, where companies are seeking to expand production capacity and secure reliable supply chains. Shell's move into Canadian operations positions the company to benefit from North America's energy infrastructure and Canada's strategic location for exports to multiple markets.

The acquisition is subject to regulatory approval and customary closing conditions. Shell expects the deal to close in the coming months, pending shareholder and regulatory approvals from both Canadian and international authorities.