Nexus Keen to Develop Crux LNG as Standalone Project
Nexus Energy revealed Thursday, through an address made by its chairman, that the company is keen to work with its joint venture partners to develop the Shell-operated Crux development – sited offshore Western Australia – as a standalone floating liquefied natural gas (LNG) project.
The company's address comes amid recent media and consultant reports, which have drawn attention to the fact that all seven of Australia's new LNG projects – four projects which draw from gas fields in Western Australia and three from Queensland – will be looking at large project cost blowouts amid labor shortages, a strengthening local currency and increased regulation.
Shell revealed Tuesday that it could delay its final investment decision (FID) on the Arrow LNG project, a joint venture with PetroChina, forecasted to cost around $20 billion. Shell had acknowledged that it is not rushing into an FID for Arrow, given considerable permitting, infrastructure and development bottlenecks on Curtis Island.
Nexus had disclosed earlier on Aug. 3 that the development considerations for the Crux field include a tie-in to Shell's Prelude FLNG vessel, a standalone FLNG project or an integrated gas recycling scheme.
"Crux is strategically located in the East Browse Basin off Western Australia, a world class petroleum system. It is rich in liquids, has manageable carbon dioxide content, and benefits from moderate water depths and close proximity to export markets," the company's Chairman Don Voelte noted in the statement.
Nexus inked an Aug. 3 agreement with Shell and Osaka Gas following board approvals to form a new joint venture which will accelerate the exploration and development works of the field.
The agreement sees Shell taking its place as the operator of the production license AC/L9 with an 80 percent interest. Nexus and Osaka Gas hold a 17 percent and 3 percent interest respectively.
The field is estimated to hold 1.8 trillion cubic feet of gas and 66 million barrels of liquids, a published presentation by Nexus on Nov. 17, 2011 shows. Osaka Gas, alongside with other major Japanese trading houses and power plant operators, have been investing heavily in new LNG projects following Tokyo's announced commitment to phase out the use of nuclear power by 2040.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 27 Offshore Rigs
- Shell Looks Beyond Road Fuels to Secure Future of Refining (Nov 06)
- API Panel Member: Voluntary Methane Program Forthcoming (Oct 06)
- Eni Bets Big on Zohr Explorer Finding New Treasure (Oct 06)
Company: Nexus Energy more info
- Nexus Resumes Production at Longtom-4 Well in Gippsland Basin (Mar 12)
- Nexus Updates on Plans to Divest its Crux, Longtom Assets in Australia (Feb 21)
- Santos Suspends Production at Patricia-Baleen Gas Processing Plant (Jan 14)