Shell has given green light to build the Crux gas field at an estimated cost of around $2.5bn, off the coast of Western Australia, reported Reuters.
Construction of the gas field is anticipated to commence in 2023, with the first gas production anticipated in 2027.
The gas field will annually feed the 3.6 million tonne Prelude floating liquefied natural gas (FLNG) facility.
According to Shell, the Asian customers will be helped by this project in their move to shift from coal to gas, and offer them a secure supply source, especially after the imposition of sanctions on Russia in the wake of Moscow’s military incursion on Ukraine.
Shell director of integrated gas, renewables, and energy solutions Wael Sawan was quoted by the news agency as saying: “The project will also boost our customers’ security of supply, which is becoming an ever more significant consideration for global consumers.
“The use of Prelude’s existing infrastructure enables significantly reduced development costs, making Crux competitive and commercially attractive.”
Wood Mackenzie estimated the cost of the project at about $2.5bn.
This project will feature the development of a platform that will be remotely run from the Prelude FLNG facility, which is located around 160km south-west of the Crux field.
Besides the initial drilling of five wells, this project will include an export pipeline to link the platform to the Prelude facility.
Image: Construction of the gas field is anticipated to commence in 2023. Credit: smellypumpy from Pixabay.