LogIn LogOut

Prelude FLNG Shut Down

February 5, 2020

Prelude FLNG - Image by CapTom - MarineTraffic
Prelude FLNG - Image by CapTom - MarineTraffic

Royal Dutch Shell said on Tuesday it has temporarily suspended production at its Prelude floating liquefied natural gas (LNG) facility off northwest Australia following an electrical trip on Feb. 2.

Work is underway to restore full operations, a spokeswoman told Reuters on Tuesday. 

"Due to some technical issues, there was a delay in starting up the back-up diesel generators which impacted certain amenities on board. These issues are being resolved, and we have made the proactive decision to temporarily reduce the number of people on board," she said. 

With Asian spot LNG prices diving to a record low this week as the coronavirus epidemic sweeping China dents demand from the world's second-largest importer of LNG, the impact of the production cut at Prelude is expected to be minimal, trade sources said. 

"There is still too much gas and very little demand," a Singapore-based industry source said. 

Buyers of LNG in China are bracing for gas demand to be shattered by a virus epidemic that has killed more than 420 people. Many buyers are considering either delaying cargoes or canceling them by invoking a force majeure clause. China is Australia's No.2 LNG export destination by volume, behind Japan. 

Prelude, the world's largest floating LNG facility, has the capacity to produce 3.6 million tonnes a year of LNG, 1.3 million tonnes a year of condensate and 400,000 tonnes a year of liquefied petroleum gas (LPG). It shipped its first LNG cargo in June last year following start-up delays. The project is jointly owned by Shell, Japan's Inpex Corp , Korea Gas Corp and Overseas Petroleum and Investment Corp, a unit of Taiwan's CPC Corp. 

(Reporting by Jessica Jaganathan in SINGAPORE and Sonali Paul in MELBOURNE; Editing by Kim Coghill and Tom Hogue)



Current News

More Than Two Dozen Missing after Ship Snaps in Two, Sinks Off Hong Kong

More Than Two Dozen Missing after Ship Snaps in Two, Sinks Off Hong Kong

Russia's Control of Sakhalin Project Could Pose Upside Risk to LNG Prices

Russia's Control of Sakhalin Project Could Pose Upside Risk to LNG Prices

Portugal's EDP to Scale Up Offshore Solar Plants in Southeast Asia

Portugal's EDP to Scale Up Offshore Solar Plants in Southeast Asia

India Imposes A Windfall Tax On Oil Producers and Export Duties For Oil Products

India Imposes A Windfall Tax On Oil Producers and Export Duties For Oil Products

Russia to Replace Sakhalin-2 Project Operator with New Firm

Russia to Replace Sakhalin-2 Project Operator with New Firm

State Agency Wants Net-zero Carbon Emissions from Australia's Giant LNG Plant

State Agency Wants Net-zero Carbon Emissions from Australia's Giant LNG Plant

Gazprom Cancels Dividend for First Time Since 1998. Shares Drop

Gazprom Cancels Dividend for First Time Since 1998. Shares Drop
photo

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com