By Rhiannon Hoyle
LONDON (Dow Jones) — Oil company Shell is to partner with Australia’s Seven Group Holdings to develop the Crux natural gas field off the coast of Western Australia. According to Shell plc, the joint venture will start construction on the project this year and is expected to start gas production in 2027. Total development costs are estimated at around US$2.5 billion.
Shell believes Crux gas will be in demand as Asian utilities, which traditionally demand large amounts of coal, diversify their energy mix. In addition, after Moscow’s invasion of Ukraine, customers worldwide are likely to turn away from Russian energy resources. The project will “enhance our customers’ security of supply, which is becoming increasingly important to consumers around the world,” said Wael Sawan, head of Shell’s integrated gas business.
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(END) Dow Jones Newswires
May 30, 2022 00:51 ET (04:51 GMT)
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