Shell working to bring Prelude FLNG to full capacity, CEO says

Shell is still working to bring its giant Prelude FLNG offshore Australia to full production following a long shutdown due to an electrical trip in February last year, according to chief executive Ben van Beurden.

To remind, the giant floating LNG producer shipped the first cargo in almost a year in early January followed by the second shipment later the same month.

“Prelude is not yet at full capacity, we still have a few things to resolve,” van Beurden said on Thursday during a webcast for media after Shell announced its fourth-quarter results.

The CEO noted that “it is difficult to fly out people and equipment under pandemic conditions, especially to a country like Australia, but we addressed the issues and launched the facility again.”

“I think we are at the third cargo now since the beginning of the year,” van Beurden said.

“Hopefully soon, once we resolve the next issue, we will be stepping up capacity and the number of cargoes further again,” he said.

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.

Moreover, Shell operates the floating facility located some 475 km from Broome in Western Australia, with a 67.5 percent stake.

Japan’s Inpex holds a 17.5 percent stake, Korea’s Kogas 10 percent, while Taiwan’s CPC holds 5 percent.

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