First Prelude LNG shipment heading to Asia

Floating Liquid Natural Gas processing ship Prelude

The first shipment of liquefied natural gas (LNG) from Shell’s Prelude Floating Liquefied Natural Gas (FLNG) facility has been hailed as an important milestone for Australia’s oil and gas industry.

The Shell-operated Prelude FLNG facility is an offshore development that will produce natural gas from a field about 475 km north-north east of Broome in Western Australia.  The Prelude FLNG facility – a joint venture with INPEX, KOGAS and OPIC – will produce 3.6 million tonnes per annum (Mtpa) of LNG.

Australian Petroleum Production & Exploration Association (APPEA) chief executive Andrew McConville congratulated Shell and its joint venture participants on the first LNG cargo from the large-scale project.

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“Industry welcomes and applauds the first LNG shipment from Prelude that will be delivered to customers in Asia,” Mr McConville said.

“This historic and world-class FLNG project will deliver jobs, taxation and export revenues for Australia for decades to come.

“Importantly, the LNG produced by Prelude will contribute to the stable supply of low emissions energy and meet growing cleaner energy demand from Asia and the rest of the world.”

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Mr McConville said Australia was continuing to reap the rewards of more than $350 billion worth of investments that will see LNG exports surge to more than 85 million tonnes by 2020.

Seven new LNG projects have now been completed since 2015 including QCLNG, GLNG, Australia Pacific LNG, Gorgon, Wheatstone, Ichthys and the Prelude FLNG.

“These are important legacy projects that will deliver significant benefits to state and the national economies for many decades,” Mr McConville said.

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