Sembcorp Marine scores contract for Australian gas project

Singapore’s Sembcorp Marine said it has secured an engineering, procurement, construction and installation contract for a gas topsides project in Australia.

The company’s unit Sembcorp Marine Offshore Platforms won the contract from a “major energy company”.

Sembcorp Marine said the work on the topsides would last four years and that it does not expect he contract to have any material impact on the net tangible assets and earnings per share of the group for the year ending December 31, 2022.

The firm, which earlier this year signed a definitive merger deal with Keppel Offshore & Marine, did not reveal any additional information regarding the contract.

This contract is tied to Shell’s Crux natural gas project offshore Western Australia which will boost supplies to the giant Prelude FLNG unit.

Shell took a final investment decision on the project in May.

Crux will have the capacity to supply the FLNG with up to 550 million standard cubic feet of gas per day (mmscfd).

The Crux field is located in Commonwealth marine waters in the northern Browse Basin, 620 kilometers northeast of Broome.

Also, the development will consist of a platform operated remotely from Prelude FLNG.

Shell said it would initially drill five wells, and build an export pipeline to connect the platform to Prelude, located around 160 kilometers to the southwest of Crux.

Prelude FLNG has the capacity to produce 3.6 mtpa of LNG, 1.3 mtpa of condensate, and 0.4 mtpa of LPG.

Shell recently stopped production on the floating LNG unit offshore Western Australia due to an industrial action and work bans.

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