Shell Secures Approval for Australia's Giant Offshore Gas Project

Shell plc SHEL has received approval from the National Offshore Petroleum Safety and Environmental Management Authority to move forward with the activities proposed in its submitted environmental plan. This milestone paves the way for the installation of key infrastructure needed to link the Crux field to the Prelude floating liquefied natural gas (PFLNG) facility.The approval covers the installation of the Crux platform, pipelines, topsides and all the necessary tie-ins. With the first gas expected in 2027, Shell outlined that the project development will consist of a platform operated remotely from Prelude, with five wells to be drilled initially. The company sees Crux as a long-term solution to sustain operations at PFLNG, one of the world’s largest floating gas plants.An Insight Into the Crux ProjectThe Crux development project, sanctioned in May 2022, is located in Commonwealth waters in the northern Browse Basin, 190 kilometers offshore northwest Australia in approximately 165 meters of water depth. It is jointly held by Shell Australia (as the operator) and SGH Energy (as a partner). The Crux field will provide backfill gas to the operator’s 3.6 million tons per annum PFLNG facility. The project is expected to produce about 1.6 trillion cubic feet of gas, 66 million barrels of condensate and 40 million barrels of liquid petroleum gas over its lifetime.Multi-Phase Development TimelineThe Crux project will unfold in multiple stages, with completion expected in the second half of 2027. The key phases include:Pipeline installation and cold commissioning- Five monthsInstallation and commissioning of flexible riser and umbilical- Six weeksSubstructure installation- Three monthsTopside installation- Six monthsTie-ins and commissioning- Two yearsPrelude FLNG modifications- Two years Need for Inspection, Maintenance and RepairShell claimed that the infrastructure is designed in a way that needs minimum inspection or intervention. However, certain events, such as third-party interaction or a severe cyclone, may emphasize the need for these activities. So, the project provides for inspection, maintenance and repair activities that may happen during the preservation period.SHEL’s Zacks Rank and Key PicksLondon-based Shell is one of the primary oil supermajors — a group of the U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).Investors interested in the energy sector might look at some better-ranked stocks like Delek Logistics Partners, LP DKL, Archrock, Inc. AROC and Coterra Energy Inc. CTRA. While Delek Logistics and Archrock currently sport a Zacks Rank #1 (Strong Buy) each, Coterra Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Delek Logistics Partners owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 34.45% year-over-year growth.Houston-based Archrock is a provider of natural gas contract compression services as well as a supplier of aftermarket services for compression equipment. The Zacks Consensus Estimate for AROC’s 2025 earnings indicates 46.67% year-over-year growth.Houston, TX-based Coterra Energy is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. The Zacks Consensus Estimate for CTRA’s 2025 earnings indicates 97.62% year-over-year growth.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delek Logistics Partners, L.P. (DKL): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis Report Coterra Energy Inc. (CTRA): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks