Shell’s Prelude FLNG comes on stream

Australia

SINGAPORE, December 26, 2018 – Shell has started up production at the world’s largest FLNG ship offshore Australia, international media reported on Wednesday.

The super-major owns 67.5% of Prelude FLNG, which has a nameplate capacity of 3.6 million tonnes per year (tpy) of LNG, 1.3 million tpy of condensate and 400,000 tpy of LPG. Shell’s partners in the project are Inpex (17.5%), Korea Gas Corporation (10%) and CPC Corporation (5%).

“Given Prelude’s novelty, geographic conditions and challenges, it may be subject to greater risk to timeline from wellhead production to first cargo than an average LNG project,” Saul Kavonic, an energy analyst at Credit Suisse told Reuters. “We expect Shell to seek to get it done right, rather than rush things.”