Shell’s Prelude ships first LNG cargo

Shell Australia’s Prelude floating LNG project, 475 km offshore Broome, Western Australia, has shipped its first LNG cargo, loading the 173,400-cu m Valencia Knutsen for delivery to Asia. Prelude came on stream in January and shipped its first condensate cargos in March.

Jun 11th, 2019

Shell Australia Pty. Ltd.’s Prelude floating LNG (FLNG) project, 475 km offshore Broome, Western Australia, has shipped its first LNG cargo, loading the 173,400-cu m Valencia Knutsen for delivery to Asia.

Prelude came on stream in January and shipped its first condensate cargos in March.

Shell expects Prelude FLNG to remain on station for 25 years. The company has filed plans with Australian regulators to develop Crux natural gas-condensate field, also in Browse basin 160 km northeast of Prelude, as a tie-in to Prelude FLNG (OGJ Online, Feb. 5, 2019). Gas would be piped via 26-in. OD pipeline to Prelude for processing, starting as early as 2025 based on an anticipated 2020 final investment decision.

Consultant Wood Mackenzie notes that Shell will be spudding its Bratwurst exploration well later this year and that if substantial gas is discovered the company will likely develop this resource through Prelude as well. “The completion of Prelude marks the end of the Australian greenfield LNG bloom,” WoodMac said. “The next investment cycle is already in sight, with backfill projects—Scarborough, Barossa, Browse, Arrow, and Crux—vying for FID.”

Prelude can produce 3.6 million tonnes/year of LNG, 1.3 million tpy of condensate, and 400,000 tpy of LPG. The FLNG is operated by Shell in joint venture with Inpex Corp. 17.5%, Korea Gas Corp. 10%, and CPC Corp. subsidiary Overseas Petroleum & Investment Corp. 5%.

Contact Christopher E. Smith at csmith@endeavorb2b.com.

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