Shell OKs Crux gas project to boost supplies to Prelude FLNG

Shell said it has taken a final investment decision on its Crux natural gas project offshore Western Australia to boost supplies to the giant Prelude FLNG unit.

Crux would have the capacity to supply the Prelude FLNG facility with up to 550 million standard cubic feet of gas per day (mmscfd), Shell Australia said on Monday.

Besides Shell Australia, SGH Energy, a unit of Seven Group Energy, is also part of the Crux joint venture.

Shell did not provide the price tag of the development.

Wood Mackenzie research analyst Michael Song said in a separate statement the development would cost $2.5 billion, and would produce 1.6 tcf gas, 60 mmbbl of condensate and 40 mmbbl of LPG.

“Crux has long been the leading candidate for providing new supply for Prelude FLNG. It has been a case of when rather than if the project would reach sanction, as the volumes are needed to ensure the FLNG facility produces at nameplate capacity into the 2030s,” Song said.

First gas in 2027

According to Shell, it plans to start construction on the project this year and expects first gas in 2027.

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.

In April, it shipped its first cargo since December last year after an incident forced Shell to shut the giant unit.

Meeting Asian demand

“Natural gas from Crux will play a key role in helping Asian customers move from coal to gas as a cleaner-burning fuel,” Wael Sawan, Shell’s integrated gas, renewables and energy solutions director said.

He said the project would help Shell to meet the increasing demand for LNG as the energy market transitions to a lower carbon future.

“The project will also boost our customers’ security of supply, which is becoming an ever more significant consideration for global consumers,” Sawan said.

- Advertisements -

Most Popular

China’s Wison wins Indonesian FLNG gig from Genting

China's Wison New Energies has secured a contract from a unit of Genting to build a floating LNG unit...

Japan’s Chiyoda provides Golden Pass LNG update

Japan's engineer Chiyoda has released an update regarding the construction of the Golden Pass LNG export project in Texas,...

South Korea’s Hanwha to increase stake in NextDecade

South Korean conglomerate Hanwha has agreed to buy more shares in US LNG firm NextDecade to increase its stake...

More News Like This

Singapore’s Temasek says to sell Pavilion to Shell

Singapore's investment firm Temasek said it had agreed to sell 100 percent of its shares in Pavilion Energy to...

Peru LNG boosts truck loading capacity

LNG terminal operator Peru LNG has increased the truck loading capacity at its 4.4 mtpa liquefaction and export plant...

Venture Global LNG’s customers get access to Calcasieu Pass documents

The US FERC has ordered LNG exporter Venture Global LNG to provide its customers with documents about the commissioning...

Gasum supplies bio-LNG to Metallica’s tour trucks

Finnish state-owned energy firm and LNG supplier, Gasum, delivered bio-LNG to Metallica's Iveco tour trucks in Finland. According to a...