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AsianOil: Shell takes FID on Crux project offshore Australia

Shell Australia announced on May 30 that it had taken a final investment decision (FID) on the Crux natural gas project offshore Western Australia. Development of Crux is aimed at providing additional feedstock gas to the Prelude floating LNG (FLNG) facility, which has been online since 2019, aside from some unplanned outages. Shell has partnered with SGH Energy to develop Crux, which is located in the northern Browse Basin, around 620 km north-east of Broome. The project will involve a platform that is operated remotely from Prelude and five initial wells, plus an export pipeline that will connect the platform to the liquefaction facility, covering a distance of around 160 km. Construction on Crux will start this year, with first gas anticipated in 2027. The project is expected to supply Prelude with up to 550mn cubic feet (15.6mn cubic metres) per day of gas. "The use of Prelude's existing infrastructure enables significantly reduced development costs, making Crux competitive and commercially attractive," stated Shell Australia's chair, Tony Nunan. Shell noted in its announcement that it expects global demand for LNG to continue growing "significantly", with Asia in particular representing a major market. The super-major touted Crux's potential to help bolster customers' security of supply as well as allowing them to decarbonise if they are substituting coal with natural gas.