Prelude Reaches Australian Waters: Shell

Update: Shell confirms Prelude ship has reached the Prelude field (adds new 3rd para)

Shell Australia confirmed July 25 that its Prelude floating liquefaction (FLNG) ship arrived in Australian waters. It is due to start production in 2018. The 488-metre-long vessel set off from its South Korean shipyard on June 29.

Shell's original release did not specifically say it had reached the field; however regional newspaper The West Australian reported that the ship had arrived at the Prelude offshore gas field at Browse Basin, 475 km northeast of Broome, in the afternoon of July 25 (local time).

Shell subsequently confirmed to NGW: "The Prelude FLNG facility has arrived at its location, the Prelude field, 475km north-northeast of Broome, where the next phase of the project, hook up and commissioning, will commence."

Shell Australia chair Zoe Yujnovich said its arrival signalled a new era for the Australian LNG export industry, with the first FLNG facility deployed there: “Prelude’s arrival is a clear demonstration of Shell’s long standing commitment to investment and development in Australia – delivering significant economic benefits to the nation.” She noted the contract recently awarded to Australian engineering company Monadelphous for maintenance and modification services valued at $200mn.

“West Australian based company Civmec, a construction and engineering services provider, built the four massive anchor piles for Prelude’s subsea flowlines from their facility in Henderson,” she added. The Prelude project will employ 260 local workers on board the facility during operations and create over 1,500 jobs during the hook-up and commissioning phase of the project. Shell expects to see cashflow from the project during 2018.

Mark Smedley