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    Sarawak's Rosmari-Marjoram passes Shell FID

Summary

Malaysia's plans for upstream gas growth have received a major boost with the investment decision, which could unlock up to 800mn ft3/d from 2026.

by: Callum Cyrus

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Sarawak's Rosmari-Marjoram passes Shell FID

Shell has awarded a positive FID to its billion-dollar deepwater investment Rosmari-Marjoram offshore Sarawak, paving the way for up to 800mn ft/d to be produced, with first gas expected in 2026, the UK major announced September 5.

Rosmari-Marjoram comprises four sour gas deposits situated 220km from Sarawak on Borneo island, specifically lying off the coast of Bintulu.

Shell's project entails a remote-operated offshore production platform connected via subsea tie-back to an onshore gas processing centre in Bintulu, via a 207-km pipeline.

The UK major holds an 80% operated stake in Rosmari-Marjoram, with the remaining 20% owned by Malaysian oil and gas giant Petronas. 

Shell plans to draw largely on renewables to power Rosmari-Marjoram's infrastructure, in line with its goal of achieving carbon neutrality by 2050 at the latest. The gas cluster's production platform will typically rely on solar electricity, supplied from a power plant comprising 450 solar PV panels.

Rosmari-Marjoram's 800mn ft3/d gas plant is also an all-new development, having displaced Shell's original vision of a standalone processing platform at sea. Shell opted for the onshore option in a bid to reduce costs, meaning each Rosmari-Marjoram offshore field will be equipped with wellhead facilities only.

Shell's officials say the design will deliver Sarawak's largest onshore build since the 1970s. Malaysian hydro dams will largely be used to power the onshore processing facility, though Shell says diesel generators and batteries will be provided as backup.

The FID comes with Malaysia aiming to expand global market share and shore up its domestic gas supply, with more than a dozen upstream gas projects to launch in the next few years.

LNG is exported through Petronas's 25.7mn metric tons/yr Malaysia LNG liquefaction complex, targeting East Asian offtake at power gas companies in Japan, South Korea, Taiwan and China. Petronas also operates the 30mn mt/yr Petronas Bintulu LNG Complex in Sarawak, expected to absorb much of Rosmari-Marjoram's output.

Shell's senior vice president of Malaysian upstream, Ivan Tan, predicts the Petronas partnership will generate economic growth for Malaysia and specifically in the state of Sarawak, which is home to a large portion of Malaysia's hydrocarbon reserves.

Tan added: "The support and partnership from Petronas and the government of Sarawak are critical to achieving this milestone with Rosmari-Marjoram.  "

Shell upstream director Zoe Yujnovich said Rosmari-Marjoram would strengthen the "responsibility" of Shell's global supply chain, delivering Asian gas with a much-reduced carbon footprint. Yujnovich added: "This demonstrates our 'Powering Progress strategy" - powering lives, generating value and reducing emissions by using renewable energy to power Rosmari-Marjoram."