Shell’s Prelude FLNG to remain offline

Shell’s 3.6 mtpa Prelude floating LNG unit offshore Western Australia will remain offline as striking workers have extended protected industrial action.

A Shell spokesperson confirmed to LNG Prime that the action had been extended for another week to September 1.

Shell and Prelude employees have been in talks for a new enterprise agreement to agree new salaries for a while now.

The workers started protected industrial action on June 14 with a number of working bans.

Shell stopped production on July 11 on the giant unit due to additional working bans.

It recently also decided to postpone the FLNG’s scheduled maintenance.

The Offshore Alliance said in a social media post that Shell has lost “an estimated $1.3 billion of production in a dispute which has locked down production and prevented any offtakes for over five weeks.”

“No company in Australian history has lost so much money in a bargaining dispute,” it said.

“Our Prelude members have drawn a line in the sand on job security and have this week supported the extension of protected industrial action until our bargaining claims are resolved,” the Offshore Alliance 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.

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.

- Advertisements -

Most Popular

Golden Pass LNG to ramp up construction activities after Zachry deal

QatarEnergy and ExxonMobil will ramp up construction activities at the Golden Pass LNG export terminal in Texas after a...

Hudong-Zhonghua confirms TotalEnergies order for LNG bunkering vessel

China’s Hudong-Zhonghua said it had secured an order to build one 18,600-cbm LNG bunkering vessel for French energy giant...

India was top destination for US LNG cargoes in May

India was the top destination for US liquefied natural gas cargoes in May, as Asia overtook Europe as the...

More News Like This

Trinidad’s Atlantic LNG to ship 4800th cargo

Trinidad and Tobago’s Atlantic LNG export plant is about to ship its 4800th cargo of liquefied natural gas since...

Malaysia’s Bintulu LNG plant to get first supplies from Jerun gas field

Malaysia's giant Bintulu LNG plant, operated by Petronas, will soon receive its first gas supplies from the Jerun field,...

MET, Shell ink 10-year US LNG supply deal

Switzerland-based energy trader MET Group has entered into a 10-year deal to buy US LNG volumes from LNG giant...

Shell takes FID on Manatee gas project to supply Trinidad’s Atlantic LNG

A unit of UK-based LNG giant Shell has taken the final investment decision for the development of the Manatee...