- Royal Dutch Shell shipped the first condensate cargo from its Prelude floating liquefied natural gas (FLNG) project off northwestern Australia.
- Shell had hoped to start generating cash flow from Prelude in 2018, but has yet to start shipping LNG from the project.
- The project was to be the world’s first floating LNG facility but was beaten by Malaysia’s Petronas.
- Prelude, designed to produce 3.6 million tonnes a year, is the last and smallest of eight LNG projects built in Australia since 2012.
Royal Dutch Shell shipped the first condensate cargo from its Prelude floating liquefied natural gas (FLNG) project off northwestern Australia, reports Reuters.
About the Shipment
The shipment of cargo took place over the weekend of March 23rd. “We can confirm that the first shipment of condensate has sailed from the Shell-operated Prelude FLNG facility. This is another step towards steady state operations,” a Shell spokeswoman said in emailed comments.
Why was there a delay?
Shell had hoped to start generating cash flow from Prelude in 2018, but has yet to start shipping LNG from the project. The project was to be the world’s first floating LNG facility but was beaten by Malaysia’s Petronas. The company declined to say when it expects the first Prelude LNG cargo.
A Focus on the Future
“The focus continues to be on providing a controlled environment to ensure Prelude will operate reliably and safely now and in the future,” the spokeswoman said.
Shell also declined to comment on a report in the West Australian newspaper. The report pointed to one factor that has delayed LNG production. That being a problem with the arms built to transfer LNG from Prelude to tankers alongside the massive vessel.
About Prelude
Prelude, designed to produce 3.6 million tonnes a year, is the last and smallest of eight LNG projects built in Australia since 2012. This puts the country on course to overtake top LNG exporter Qatar’s capacity. Prelude is the world’s biggest floating LNG production unit and the biggest maritime vessel ever built.
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Source: Reuters
