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Highlights
- The development of Crux gas field will bring down the rising demand for natural gas.
- Construction of the Crux will begin this year, and the gas field is expected to produce LNG in 2027.
- The project’s estimated cost is US$2 billion to US$3 billion.
The shares of Seven Group Holdings Limited (ASX:SVW) closed 1.647% higher at AU$19.130 per share on the ASX today (30 May). Approximately 400k shares of Seven Group were traded on the ASX.
The share price of Seven Group has fallen over 4% on the ASX over the past 12 months. On the other hand, Seven Group’s year-to-date share price also fell over 14% (as of 3:51 PM AEST on the ASX today, 30 May).
Why is Seven Group in news?
Shell Plc and Seven Group have approved the development of the Crux gas field to meet the rising demand for fuel worldwide. The multi-billion-dollar natural gas project off the Western Australian coast for the supply of Prelude floating LNG Plant.
The Crux gas field is located 620 kilometres northeast of Broome. It is believed that this gas field is going to be the next major development of new natural gas reserves after the Barossa project by Santos (ASX:STO) on the north coast of Australia.
Shell did not lay down the estimated cost of the project.
Shell’s integrated gas business head, Wael Sawan, believes that the development of Crux will boost the security of its clients regarding the supply of LNG. It is even more crucial for Shell’s global customers.
The joint venture will soon begin the construction of Crux this year and is expecting the gas field to produce LNG in 2027.
Image source: © Xphantom | Megapixl.com
The Crux project has received all the relevant regulatory approvals needed for its development. It includes a production license from the National Offshore Petroleum Titles Administrator and clearance from the National Offshore Petroleum Safety and Environmental Management Authority.
Meanwhile, both the companies have already completed the early engineering and design works at the Crux. Seven groups owning 15% of the Crux have addressed a final investment decision that was due by the middle of the year.
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About Seven:
Seven Group Holdings Limited is an ASX-listed industrial sector firm with a market capitalization of AU$6.83 billion. The company is primarily involved in diversified investment and consists of a wholly-owned industrial operating business along with investments in media and industrial equipment hire.
About Shell:
Shell Plc is an energy sector company. The company is primarily involved in the business of oil and gas and petrochemicals. The company’s presence can be found in 70 countries with a total employee strength of approximately 80.000.
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