Shell's Australian FLNG timed for 2016 start-up

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Oct. 14 -- Royal Dutch Shell PLC does not expect to start production from its proposed floating LNG (FLNG) project in the Browse basin off Western Australia until at least 2016, according to the company’s draft environmental impact statement.

Although the front-end engineering and design process (contracted to Technip SA of France and Samsung Heavy Industries of South Korea) has begun, Shell does not expect to make a final investment decision until early 2011.

The $5 billion, 600,000-tonne FLNG facility is expected to take 5 years to build.

Meanwhile, Shell intends to drill eight subsea production wells on its Prelude and Concerto gas discoveries in the Browse basin 475 km north-northeast of Broome. Development drilling is scheduled to begin in 2013 and take 2 years. The wells will be tied back to subsea manifolds before being connected to the FLNG vessel via flowlines and riser.

The vessel tow from the South Korea construction yard (Technip and Samsung also have the contract to build the FLNG), along with installation and hook up, will take about 6 months, with commissioning in the late 2015 before first production the following year.

Production is estimated to comprise 3.6 million tonnes/year of LNG, 1.3 million tpy of condensate, and 400,000 tpy of LPG.

Shell says the offshore project will have a low environmental footprint on its location away from migration paths for whales and turtles that seasonally pass up and down the Western Australian coast.

The FLNG project will come on stream after the company’s proposed onshore coal seam gas-LNG project at Gladstone, Queensland, in joint venture with Arrow Energy begins production in 2014.

Related Articles

BG Group: Mzia DST supports potential hub development offshore Tanzania

08/27/2014 Results from the second drillstem test (DST) on the Mzia discovery on Block 1 offshore southern Tanzania indicated further support for a hub develo...

Canadian firms plan BC gas plant, target LNG export

08/19/2014 AltaGas Ltd. and Painted Pony Petroleum Ltd., both of Calgary, have agreed to develop processing and marketing of natural gas and NGLs for Painted ...

EIA: China to increase natural gas consumption, investment

08/18/2014 China more than tripled natural gas production since 2003, producing 3.8 tcf in 2012, and the government is targeting production to reach about 5.5...

DOE finalizes LNG export national interest review reforms

08/15/2014 The US Department of Energy finalized reforms it proposed on May 29 to its process for determining whether planned LNG export projects are in the n...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected