SGH has spent nearly $1b on the Crux LNG project off WA, a sign of its commitment to the Shell-operated gas field. First gas is expected in 2027.
SGH has spent almost $1 billion on the Crux LNG project off Western Australia, despite holding only a 15.5% stake, according to a Business News report.
The outlay reflects the scale of the Shell-operated gas field, which is expected to cost roughly $6.5 billion to develop based on SGH's ownership share. Crux is in the Browse Basin, about 620 kilometres north of Broome. It will feed gas into the North West Shelf LNG plant, where Shell is the operator.
For SGH, the industrial conglomerate controlled by Kerry Stokes, the near-$1 billion spend is a meaningful capital commitment. The company's market capitalisation is about $4 billion. The project has been under development for several years, with Shell approving the final investment decision in 2022.
SGH's exposure to Crux sits alongside its other energy interests, including a stake in the Beetaloo Basin gas project. The conglomerate also owns equipment hire businesses and media assets.
The Crux project is targeting first gas in 2027, Shell has said. The cash flow from the project will take several years to materialise. The investment locks in long-term exposure to LNG supply.
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