LNG giant Shell confirmed it has resumed LNG cargo loading operations from its 3.6 mtpa Prelude floating LNG producer offshore Western Australia.
Shell Australia said in a statement on Monday that “cargoes have resumed from Shell’s Prelude FLNG facility and production has restarted.”
Last month, Shell said it had reached an agreement with unions representing Prelude FLNG workers to end the strike and restart operations on the giant floating producer.
The workers started protected industrial action on June 14, while Shell stopped production on July 11 on the giant unit due to additional working bans.
“The enterprise agreement has now been supported by a majority of employees in a formal vote and is expected to come into effect in early October 2022,” Shell’s Australian unit said in the new statement.
Shell Australia did not provide any additional information.
First LNG cargo since July
To remind, LNG Prime reported on September 15 that the Prelude FLNG was gearing up to ship the first cargo of LNG since July this year as the 2021-built 174,000-cbm Minerva Chios, owned by Minerva Marine, was heading towards the unit.
According to its AIS data provided by VesselsValue, the LNG carrier loaded a cargo and departed from Prelude on Saturday. It appears to be heading towards Taiwan.
The restart of shipments from Prelude FLNG comes at a time of very high gas and LNG prices and high demand, especially in Europe, ahead of the peak winter period.
The JKM LNG price for November reached about $45 per MMBtu on Friday.
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, South Korea’s Kogas 10 percent, and Taiwan’s CPC holds 5 percent.