• The construction is scheduled to begin in 2023 while the first gas is expected to be produced by 2027.
• Shell believes the new gas project would aid its Asian customers' move to gas from coal.

Multinational oil and gas company Shell plc has reportedly given a green light to develop the Crux gas field near Australia, which is expected to be around USD 2.5 billion. The construction of this gas project is scheduled to begin in 2023 while the first gas is expected to be produced by 2027.

According to Shell, the gas project would aid its Asian customers' move to gas from coal while providing a secure supply source, which has emerged to be a key factor following strict sanctions on Russia.

Shell’s Prelude FLNG facility has been facing long-running problems, which in turn is hurting ROI on the Crux development that is estimated to be highly valuable given it will be using existing infrastructure.

The Integrated Gas, Renewables, and Energy Solutions Director at Shell Wael Sawan mentioned that the use of Prelude’s infrastructure will allow for reduced development costs, further making Crux a commercially attractive venture.

The Crux project is a definitive illustration of the type of shorter-cycle, incremental, and high-return development that the oil industry is focusing on as it works to maintain capital disciple despite reinforcing commodity prices, sources claimed.

It is worth noting that the Crux volumes are expected to penetrate the market around the same time when 100 million tonnes of LNG would be arriving from the United States, Qatar, Canada, and Nigeria. Additional details of the project’s cost or the capital investments are yet to be announced.

Meanwhile, some traders have reported that surging margins for gasoline and diesel in the United States and Europe owing to Russian sanctions have sent crude oil prices to an all-time high.

Source Credits –

https://www.channelnewsasia.com/business/shell-greenlights-25-billion-crux-gas-project-australia-2715576#:~:text=MELBOURNE%20%3A%20Shell%20Plc%20said%20on,would%20cost%20around%20%242.5%20billion.