Shell moves forward with Crux project in Australia

A unit of UK-based LNG giant Shell has received approval from Australia’s offshore regulator Nopsema to advance its Crux natural gas project offshore Western Australia, which will boost supplies to the giant Prelude FLNG, through to completion and start-up.

Nopsema recently approved the environmental plan that covers the completions, hot commissioning, start-up, and operation activities, including contingent and supporting activities

This includes completion of five wells requiring well perforation, well clean-up, tie-in of trees to topsides, and also associated activities with an approximate duration of 3-10 months.

It also includes the start-up of facilities and associated activities to safely activate production from Crux wells with hydrocarbon export to Prelude FLNG with an approximate duration of 9-24 months.

Nopsema said the EP also includes operation of facilities with hydrocarbon export to Prelude FLNG, including not normally manned operation, planned and unplanned platform visits, maintenance campaigns, turnarounds, well interventions, workovers, and associated activities.

Production is planned for 15 years subject to extension based on actual reservoir reserves, efficiencies in the recovery of hydrocarbons and the potential for future developments to extend the operating life.

“The activity is scheduled to be undertaken from approximately 2026 (pending regulatory approvals and project schedule interfaces) and will be continuous (24 hours per day, 365 days per year),” Nopsema said.

550 mmscfd

In May 2022, Shell took the final investment decision on its Crux natural gas project, located about 190 km off the Kimberley coast of Western Australia and 620 km north-east of Broome.

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

Shell Australia said the project will have the capacity to supply the Prelude FLNG facility with up to 550 million standard cubic feet of gas per day (mmscfd).

The 488-meter-long and 74-meter-wide FLNG shipped its first cargo in June 2019 after several start-up delays.

It can produce 3.6 mtpa of LNG, 1.3 mtpa of condensate, and 0.4 mtpa of LPG.

Shell operates the floating facility with a 67.5 percent stake. Japan’s Inpex holds a 17.5 percent stake, South Korea’s Kogas has 10 percent, and Taiwan’s CPC holds 5 percent.

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