Offshore staff
LONDON — Shell has sanctioned development of the Crux gas field in the Bonaparte Basin offshore northwest Australia, according to Wood Mackenzie.
The $2.5 billion development will produce 1.6 Tcf of gas, 60 MMbbl of condensate and 40 MMbbl of LPG via an unmanned platform tied back to the 3.6-MMt/year Prelude FLNG vessel.
WoodMac research analyst Michael Song said Shell needs these supplies to ensure the FLNG facility produces at its nameplate capacity into the 2030s.
“A significant portion of the LNG will be lifted into Shell’s global portfolio," he said. "These volumes will supply growing Asian LNG demand, in support of coal-to-gas switching and lower carbon emissions.
“With future supply secured, Prelude partners must ensure there are no further technical issues onboard the vessel and maintain stable production to take advantage of current LNG prices. First gas is targeted for 2027, which should be achievable given the small-scale upstream development.”
Around that time, new LNG supply should be ramping up elsewhere. During 2026 to 2028, WoodMac expects more than 100 MMt/year of new LNG to come onstream in Qatar, the U.S., Nigeria and Canada.
WoodMac research director Andrew Harwood added, “Shell is also making substantial investments in its Renewables and Energy Solutions business in Australia, as it seeks to diversify away from its legacy oil and gas business.”
05.31.2022
