GTT Gets Prelude Follow-Up Order
French technology firm GTT said October 23 it had won a contract from Shell's Prelude floating LNG venture in Australia, due to start producing in 2018. The contract is for membrane cargo containment system services, including support for their engineering, inspection, maintenance and testing.
Prelude FLNG has ten tanks (six for LNG and 4 for LPG) already, each equipped with the membrane containment system Mark III developed by GTT.
The giant production ship arrived July 25 at the Prelude field offshore northwest Australia, where GTT says that hook-up and commissioning phase of the project is underway. Prelude FLNG has overall liquefied gas (LNG and LPG) storage capacity of 326,000 m3. Interests in the venture are Shell 67.5%, Japan's Inpex 17.5%, Taiwan state-owned CPC 5%, and South Korea utility Kogas 10%.
GTT CEO Philippe Berterottiere said: “We are very proud to continue to work with Shell on the Prelude FLNG project, building on the portfolio of innovative services we have developed. This contract is somewhat of a landmark for GTT.”
In results on October 18, GTT said its order book at end-September was for 86 'units', comprising 70 LNG carriers, 11 floating storage and regasification units (FSRUs), 2 floating liquefaction units, 2 onshore storage tanks, and one LNG bunker barge. Revenues were down year on year by 4.6% at €168.5mn in the January-September 2017 period. Most came from royalty payments on licensing of its prioprietary GTT membrane systems, but they declined by 6.3% to €157.1mn, whereas the provision of services increased by 26.6% to €11.4mn. This new Prelude contract fits into the latter category.
Prelude is on due to start up at some point next year, but Shell has not given a firm date.
Mark Smedley