In Focus: Australia
The Shell Australia business is focused on the exploration, development and production of LNG and oil. Australia ranks in Shell's top five as an investment destination. We are Australia’s second-largest foreign investor.
The bulk of the growth in global LNG exports in 2016 came from Australia, where exports increased by 15 million tonnes (MT) to 44.3 MT. Australia is now the second largest LNG exporter, after Qatar and ahead of Malaysia.
Shell’s Australian portfolio includes:
- Majority interest holding of the Shell-operated QGC venture;
- 67.5% stake in our operated Prelude FLNG project;
- 50% interest in Queensland’s Arrow Energy;
- 27% equity in the Woodside-operated Browse Development venture;
- 25% stake in the Chevron-operated Gorgon LNG project;
- 16.67% equity in the Woodside-operated NWS Project; and
- 13% equity in Woodside Petroleum.
Shell is building the world’s largest floating liquefied natural gas (FLNG) project, which has the potential to transform the way we develop natural gas resources. It will help to unlock vital energy resources offshore, without the need to lay pipelines and build processing plants on land.
As the operator, Shell has a 67.5% interest in Prelude FLNG with partners INPEX 17.5%, Kogas 10% and OPIC 5%.
As the Prelude construction phase nears completion, the focus remains on building a facility that is safe, profitable and reliable. 2016 saw a transition from construction to commissioning in Geoje, South Korea. The Prelude production wells and subsea infrastructure have been completed. Once ready, the facility will be towed to the Browse Basin off the north coast of Western Australia, where it will extract, process, store and transfer LNG, LPG and condensates at sea.
The Shell-operated QGC venture is located in Queensland in eastern Australia. QGC, one of Australia’s leading natural gas producers, is focused on developing Queensland’s world-class onshore gas reserves. QGC operates an 8.5-mtpa LNG plant on Curtis Island near Gladstone, as well as natural gas operations which include wells, compression stations and processing plants, in Queensland’s Surat Basin. During the development and operation of QGC, the venture has worked with local communities and Traditional Owner groups, while meeting 1,500 environmental conditions.
Shell is the majority interest holder in the QGC venture. The partners in the LNG plant on Curtis Island are CNOOC (50% equity in Train 1) and Tokyo Gas (2.5% equity in Train 2).
In November 2015, QGC announced the Charlie project on its tenements west of Wandoan in Queensland’s Surat Basin. The Charlie project is the operation’s next stage of development and is an important investment in future gas supply. The project is progressing to schedule.
QGC has supplied natural gas to the domestic market since 2006 and LNG to international customers since 2014. In 2016, QGC supplied the equivalent of 20% of Queensland’s domestic demand and loaded its 200th cargo in December 2016.
The Gorgon Project involves the development of the Greater Gorgon gas fields, located between 130 and 200 km off the north-west coast of Western Australia and contains about 40 trillion cubic feet of gas, Australia's largest known gas resource. It involves an LNG production facility on Barrow Island, around 60 km offshore, LNG shipping facilities to transport products to international markets, and greenhouse gas management via injection of CO2 into deep formations beneath Barrow Island.
Shell holds a 25% stake in the Gorgon joint venture. The other joint venture participants are Chevron (operator) and ExxonMobil, Osaka Gas, Tokyo Gas and Chubu Electric Power.
The Gorgon Project commenced LNG production in March 2016. Shell’s first cargo from Gorgon sailed in July 2016.
North West Shelf (NWS) Project
The NWS Project has been Western Australia’s largest producer of pipeline gas since 1984.
Shell was a foundation participant in the NWS Project and now holds a 16.67% equity stake in the NWS LNG project, serving as a technical advisor.
The NWS project is operated by Woodside Petroleum Limited. The other participants in the NWS Project are BP, BHP Billiton Petroleum, Chevron, Mitsubishi/Mitsui and Woodside.
Arrow provides approximately 20% of Queensland’s gas supply from five producing onshore gas fields in both the Surat and Bowen Basins.
Shell holds a 50% interest in Arrow Energy, a joint venture partnership with PetroChina, which is developing onshore reserves in Queensland’s Surat Basin, and the Bowen Basin in Central Queensland.
Arrow is assessing development options for its natural gas resources.
Shell continues to work on valuable opportunities in Australia, including the development of the Crux field and the options for development of the Greater Sunrise fields.