Shell declares LNG interest

Shell announced yesterday that it has made a final investment decision with its involvement in the Gorgon liquefied natural gas (LNG) project off the coast of Western Australia.

The decision from Shell signals the start of initial construction on one of the world’s largest natural gas developments, which is said to hold around 40 trillion cubic feet of gas.

The project will include construction of a liquefied natural gas facility with an annual capacity of around 15 million tonnes per year on Barrow Island.

Plans call for development of the Greater Gorgon gas fields, beginning with the Gorgon and Jansz-Io gas fields – the largest gas discoveries to date in Australia – with development facilities installed directly on the ocean floor, in water up to 1,300m deep. Two subsea pipelines with a combined length of 240km will carry the gas to facilities on Barrow Island.

Costs for the first phase of development are estimated at $37bn (£22.5bn).