Page 11 - GLNG Week 01 2021

GLNG AUSTRAL ASIA GLNG

Prelude FLNG shutdown extended

by regulator’s order

PROJECTS & AUSTRALIA’S National Offshore Petroleum cause of the power failure at Prelude, but NOP-
COMPANIES Safety and Environmental Management Author- SEMA has said this does not go far enough.
ity (NOPSEMA) has ordered Royal Dutch Shell Consequently, the regulator has directed Shell
not to return its Prelude floating LNG (FLNG) to broaden the scope of its investigation to
facility to service until the company can prove address the gaps it has identified. It also wants
that it can keep the vessel properly powered and the super-major to develop a detailed plan to
that safety systems are operational. implement necessary corrective actions, which
Prelude is the largest The order comes in response to Shell’s move is to be presented to NOPSEMA.
FLNG project in the to take Prelude offline earlier in December after Under the NOPSEMA order, Shell will need
world. the facility, located offshore Western Australia, to demonstrate that Prelude can safely recover
lost power following a fire. Several attempts to essential power and associated services follow-
restore power aboard Prelude failed, leading ing a loss of power and that safety and essential
NOPSEMA to send inspectors to the facility support systems are operational. There is specu-
days after the outage amid growing concerns lation that the order could keep Prelude offline
over safety. The inspectors found that Shell “did until at least March, if not longer.
not have sufficient understanding of the risks This comes as a further blow to the vessel,
of the power systems on the facility, including which is the largest FLNG project in the world at
failure mechanisms, interdependencies and 488 metres long and 74 metres wide. The facility,
recovery”. which has the capacity to produce 5.3mn tonnes
The regulator raised concerns over critical per year of liquids, including 3.6mn tpy of LNG,
safety systems, as well as the ability to evacuate has struggled with a series of technical problems
staff, being directly affected by the power loss. and was offline for most of 2020 owing to a sepa-
Shell has launched an investigation into the rate electrical issue.™

EUROPE

Montenegro eyes LNG-to-power projects

POLICY MONTENEGRO is progressing plans for using reliable energy security in Montenegro!”
LNG as a power source, to reduce its reliance on It first emerged that Montenegro was con-
sometimes unreliable hydroelectricity and dirt- sidering LNG imports in February 2020, when
ier coal. officials from the Trump administration visited
The small Balkan country currently does not Bar to discuss prospects for US LNG deliveries
use gas, lacking any infrastructure to import to the country. “That port is ideally positioned
or distribute it. However, state power company to accept LNG and would be a hub from which
EPCG has signed a memorandum of under- to transport liquefied gas to other countries; it
standing (MoU) with Singapore-based LNG is a deepwater port and can accommodate ships
Alliance on studying the construction of gas- coming from the United States,” the US Depart-
fired power stations in Montenegro’s port of Bar ment of Energy’s then assistant secretary for
and in its capital Podgorica. These terminals fossil fuels, Steven Winberg, said at the time.
would be connected to a proposed LNG termi- “Whenever you have a new energy source, it
nal in Bar that LNG Alliance will also build. creates energy stability and security.”
How long the study will take, and the time- There is also a plan to build a pipeline through
frame envisaged for the project’s development, Montenegro that would provide it with access to
were not disclosed. Azeri gas entering Europe via the Southern Gas
“We invest into new sustainable projects Corridor (SGC) in the south and LNG imports
and develop partnerships for a greener future,” at a regasification terminal in Croatia in the
EPCG and LNG Alliance said in a joint state- north. But a final investment decision (FID) on
ment announcing the memorandum on January this pipeline has not been taken and the project
2. “We are aspiring to create clean, affordable and has been stuck in limbo for several years.™

Week 01 07•January•2021 www. NEWSBASE .com P11