Shell gets approval for Crux project

Shell has cleared a regulatory hurdle for its Crux natural gas project offshore Western Australia, which will boost supplies to the giant Prelude FLNG.

Australia’s offshore regulator Nopsema approved the project’s environment plan on March 5.

The plan covers the installation of the Crux pipeline, substructure and topside, including all tie-ins, cold commissioning, contingent, and supporting activities.

“The Crux project is an important longer term backfill opportunity for the existing Prelude FLNG facilities with first gas expected in 2027,” a Shell Australia spokesperson told LNG Prime on Thursday.

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.

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

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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