Shell’s CEO: Prelude FLNG to remain offline for most of Q1

Shell’s giant Prelude FLNG located offshore Australia will likely remain offline during the first quarter of this year following an incident in December last year.

Chief executive Ben van Beurden told media during a call on Thursday after the firm announced its quarterly results that Shell expects the Prelude FLNG, “to be out for most of the first quarter.“

To remind, a Shell spokesperson told LNG Prime in December that the firm had suspended production at the giant FLNG after an incident on December 2.

The spokesperson said that smoke detected in an electrical utility area had triggered the automatic fire detection and management systems on board the FLNG facility located some 475 km from Broome in Western Australia.

Shell also evacuated the majority of workers on board the FLNG as the unit requires only a skeleton crew during a production shutdown.

After that, Australian offshore regulator NOPSEMA visited the FLNG facility giving Shell four directions the firm needs to complete prior to restarting the giant unit.

Covid restrictions

Besides working on the directions, Shell has problems in bringing specialists on board the FLNG due to Western Australia’s Covid-19 restrictions.

“It’s not been made easy because of the pandemic. It’s a remote facility, it’s difficult to get people in,” van Beurden said during the call.

“To get a vendor specialist in means that that person will need to quarantine for weeks before they can go on board, so these problems compound the issue a little bit,“ he said.

“But also we just want to make sure that whenever we restart, we know that we have solved the problem and we can do so safely,“ he said.

The CEO added that Shell works “very closely” with NOPSEMA to do so.

Prelude shipped its first cargo in June 2019 after several start-up delays. The FLNG has the capacity to produce 3.6 mtpa of LNG, 1.3 mtpa of condensate, and 0.4 mtpa of LPG.

Shell operates the floating facility with a 67.5 percent stake. Japan’s Inpex holds a 17.5 percent stake, Korea’s Kogas 10 percent, and Taiwan’s CPC holds 5 percent.

Most Popular

Cheniere inks long-term LNG supply deals with QatarEnergy

US LNG exporter Cheniere has entered into long-term liquefied natural gas (LNG) sale and purchase agreements with state-owned LNG giant QatarEnergy to supply 4 million tonnes per annum (mtpa) of LNG through 2054.

NFE in Puerto Rico LNG supply contract dispute

The Puerto Rico Electric Power Authority (PREPA) and US LNG player New Fortress Energy are in dispute over liquefied natural gas (LNG) deliveries under their long-term LNG supply deal, according to the Financial Oversight and Management Board for Puerto Rico.

Glenfarne’s Texas LNG seeks DOE extension

US energy firm Glenfarne is seeking an extension from the US Department of Energy to extend the non-FTA export start deadline for its planned 4 mtpa Texas LNG export terminal in the port of Brownsville.

More News Like This

Tecnicas Reunidas scores LNG Canada pipeline gig

Shell-led LNG Canada has awarded a contract to Spanish engineering and construction firm Tecnicas Reunidas to provide EPCM services for the second phase of the Coastal GasLink pipeline in British Columbia, on Canada’s west coast.

Shell, GTT, and LR to develop new LNG carrier

UK-based LNG giant Shell, French LNG containment specialist GTT, and classification society Lloyd’s Register have launched a joint development project to develop a conceptual 200,000-cbm LNG carrier combining hybrid-electric propulsion with GTT’s Next1 LNG cargo containment technology.

Shell delivers first bio-LNG cargo to Singapore

A unit of UK-based LNG giant Shell has delivered what it says is Singapore's first ISCC EU-certified bio-LNG cargo at the Singapore LNG-operated terminal on Jurong Island.

Shell: Q3 LNG trading results to be in line compared to previous quarter

UK-based LNG giant Shell expects trading and optimization results for its integrated gas business in the third quarter of 2026 to be in line compared with the previous quarter.