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Tuesday 28 November 2023 10:52 am

Shell’s floating LNG plant to restart next month

By: Rhodri Morgan

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Shell reckons LNG will become a primary economic driver as Asia tries to quit coal
Shell reckons LNG will become a primary economic driver as Asia tries to quit coal

Shell is set to restart export operations at its giant floating liquefied natural gas (LNG) facility in Australia next month.

Prelude, the largest operation of its kind in the world, has been undergoing unspecified maintenance since August and is reportedly set to export its first cargo on December 6th.

The facility, around 300 miles off the west coast of Australia, has suffered several outages since it started production in June 2019, including a fire that led to a full power loss in December 2021.

Shell did not confirm the exact nature of the work but said in a statement: “Prelude is a complex facility in a remote offshore location. This is its first major turnaround and we continue to work through the process methodically taking as much time as required to ensure safe execution of all activities.”

The timing of the Prelude kicking back into gear aligns with the likely uptick in LNG consumption from Europe and other major markets.

The facility suffered damage from a fire in January last year and underwent four months of repairs. Fellow oil major Chevron has recently experienced similar frustrations down under.

In August, workers at the Gorgon and Wheatstone downstream LNG facilities carried out daily labour stoppages of up to 11 hours, following a protracted dispute with over pay and conditions.

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EIG’s MidOcean Energy Announces $120m Investment from The Arab Energy Fund as Part of Equity Raise

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