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Shell takes FID on Crux

project offshore Australia

PROJECTS SHELL Australia announced on May 30 that it Nunan.
had taken a final investment decision (FID) on The super-major has not disclosed how much
the Crux natural gas project offshore Western the development of Crux would cost, but consul-
Australia. tancy Wood Mackenzie has estimated a figure of
Development of Crux is aimed at providing at about $2.5bn.
additional feedstock gas to the Prelude floating “In a global context, Crux is an example of the
LNG (FLNG) facility, which has been online type of incremental, shorter-cycle, high-return
since 2019, aside from some unplanned outages. development that the industry is targeting as it
Shell has partnered with SGH Energy to maintains capital discipline despite strength-
develop Crux, which is located in the northern ening commodity prices,” a Wood Mackenzie
Browse Basin, around 620 km north-east of research analyst, Michael Song, commented.
Broome. The project will involve a platform that He noted that it “has been a case of when rather
is operated remotely from Prelude and five initial than if the project would reach sanction, as the
wells, plus an export pipeline that will connect volumes are needed to ensure the FLNG facility
the platform to the liquefaction facility, covering produces at nameplate capacity into the 2030s”.
a distance of around 160 km. Shell said in its announcement that it expects
Construction on Crux will start this year, global demand for LNG to continue growing
with first gas anticipated in 2027. The project is “significantly”, with Asia in particular repre-
expected to supply Prelude with up to 550mn senting a major market. The super-major touted
cubic feet (15.6mn cubic metres) per day of gas. Crux’s potential to help bolster customers’ secu-
“The use of Prelude’s existing infrastructure rity of supply as well as allowing them to decar-
enables significantly reduced development costs, bonise if they are substituting coal with natural
making Crux competitive and commercially gas.™
attractive,” stated Shell Australia’s chair, Tony

P10 www. NEWSBASE .com Week 23 10•June•2022