Shell Australia and Melbourne-based oil and gas company SGH Energy will develop the Crux natural gas field, off the coast of Western Australia, via a joint venture, Shell announced on Monday.
Construction is planned to start this year and first gas is expected in 2027.
The natural gas from the Crux field will add to the existing Prelude floating liquefied natural gas (FLNG) facility. The Crux field development will consist of a platform operated remotely from Prelude.
Crux will have the capacity to supply the Prelude FLNG facility with up to 550 million standard cubic feet of gas per day.
Initial plans include drilling five wells which will be connected to the platform at Prelude via an export pipeline.
The project will help to meet the increasing demand for LNG as the energy market transitions to a lower carbon future, Shell said.
'Natural gas from Crux will play a key role in helping Asian customers move from coal to gas as a cleaner-burning fuel,' said Wael Sawan, integrated gas, renewables and energy solutions director at Shell.
By Zeynep Beyza Kilic