Shell is to keep Prelude FLNG closed until safe

Australia’s offshore security regulator has ordered Shell to shut down its Prelude FLNG facility offshore Western Australia, following the fire incident that occurred at the beginning of the month.

The Prelude floating liquefied natural gas (FLNG) is located at Browse Basin; 475 kilometres from Broome in Western Australia.

On 2 December,  Shell temporarily suspended production at the FLNG because of a fire that occurred at the facility the day before.

Local news outlets reported that Australian offshore safety regulator NOPSEMA ordered the Dutch energy giant to keep the FLNG shut. This is until the facility can properly and safely function, meaning its safety systems are fully operational.

“The failure to restore reliable power was seen to represent an ongoing impact and risk to the health and safety of the personnel on the facility,” NOPSEMA’s statement read.

This shutdown means LNG capacities from the FLNG will most likely be unavailable for some months.

The Prelude FLNG has the capacity to produce 3.6 mtpa of LNG. In addition, it can produce 1.3 mtpa of condensate, and 0.4 mtpa of LPG. Shell holds a total of 67.5 per cent stake in the facilty. There is also Japan’s Inpex (17.5 per cent stake), Korea’s Kogas 10 (per cent), and Taiwan’s CPC (5 per cent).