Shell takes FID on Malaysian gas project

Shell PLC subsidiary Sarawak Shell Bhd. (SSB) and partner PETRONAS Carigali Sdn Bhd have reached final investment decision (FID) to move forward with their Rosmari-Marjoram gas project, including an onshore gas plant (OGP) in Bintulu, Sarawak, Malaysia, to process natural gas produced from the Rosmari-Marjoram project in Block SK318, about 220 km offshore Sarawak (OGJ Online, Aug. 26, 2014).

To be primarily powered by renewable energy in line with Shell’s Powering Progress strategy as part of the broader energy transition, the Rosmari-Marjoram development is scheduled to begin producing 800 MMcfd of gas in 2026, Shell said upon announcing the Sept. 5 FID.

Part of the first phase of the Sarawak Integrated Sour Gas Evacuation System (SISGES) project, the Rosmari-Marjoram development will consist of a subsea tie-back, an unmanned well head platform, a 207-km sour wet gas pipeline to shore, and the OGP at Bintulu.

The offshore platform will use power from 240 solar panels, while the OGP will receive power from the Sarawak grid system, which is supplied mainly from hydroelectric plants.

The development will use diesel generators and batteries as backup, according to Shell.

Confirmation of FID follows the partnership’s award of a $680-million contract to Samsung Engineering Co. Ltd. in July for delivery of engineering, procurement, construction, and commissioning (EPCC) for the proposed OGP, which will have a nameplate processing capacity of 800 MMcfd (OGJ Online, July 13, 2022).

With 80% equity in the SK318 production sharing contract (PSC), SSB serves as operator alongside partner PETRONAS Carigali Sdn Bhd (20%).