Shell says it shipped an LNG cargo from Australia's FLNG Prelude despite industrial action
Shell said on Friday it had loaded and shipped a cargo of liquefied natural gas (LNG) this week at its Prelude floating LNG facility after workers scaled-down industrial action at the site off northwestern Australia, Reuters reports.
Previously Shell has notified customers of the cancellations, citing the impacts of a strike that started on June 10. Meanwhile, the Offshore Alliance, a partnership between the Australian Workers’ Union and the Maritime Union of Australia, said Shell announced its intention “to shut down production during the midst of bargaining” last week.
The Prelude facility produces 3.6 million metric tons/year (mmty) of LNG. The lack of cargoes from the vessel in the coming weeks stretches a global market already short on supplies. An explosion earlier this month that knocked out the 15 mmty Freeport LNG terminal in Texas until later this year has also taken cargoes off the market.
Key facts about FLNG Prelude
Location: Browse Basin, Australia; Depth: nearly 250 metres; Interest: Shell 67.5%, INPEX 17.5%, CPC 5%, KOGAS 10%; Fields: Prelude and potentially other Shell natural gas assets in the region; FLNG facility production capacity: At least 5.3 million tonnes per annum (mtpa) of liquids: 3.6 mtpa of LNG, 1.3 mtpa of condensate and 0.4 mtpa of liquefied petroleum gas.
