Shell and Petronas agree to invest in Sarawak sour gas development

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SHELL and Petronas have taken a final investment decision to develop the Rosmari-Marjoram gas project off the coast of Malaysia to bolster feedstocks for LNG production.

The deepwater Rosmari and Marjoram sour gas fields are located around 200 km off the coast of Sarawak. The development will include a subsea tie-back, an unmanned well-head platform, a 207 km pipeline to shore and an onshore gas plant at Bintulu. It will help ensure a sustained supply of gas to the Petronas LNG Complex, Shell said. The new onshore gas plant in Bintulu is part of the first phase of the Sarawak Integrated Sour Gas Evacuation System aimed at developing untapped sour gas resources off the coast of Sarawak. In July, Petronas Shell and PTTEP signed a long-term lease with the Sarawak State Government for land to build the new onshore plant. The state is keen to diversify and grow its economy, including the expansion of its oil and gas activities and the development of a petrochemicals industry.

Rosmari-Marjoram is designed to produce 800 m standard cubic feet of gas per day (MMscf/d) with production expected to start in 2026.

Shell said it will use solar energyto provide power to the remotely-operated offshore platform.