Page 9 - GLNG Week 39 2022

GLNG AUSTRAL ASIA GLNG

Shell Prelude FLNG resumes

production after strike

PRODUCTION SHELL has announced the restart of production and the Australian unions on August 23 with
at its Prelude FLNG vessel in the Browse Basin, the support of more than 90% of the workers.
offshore Western Australia, after a strike put a Shell told international media that an enterprise
halt to shipments of LNG cargoes for more than agreement had been supported by a majority of
two months. Industrial action taken by workers employees in a formal vote and is expected to
on board the vessel brought production to a halt come into effect in early October 2022. “We are
in July, ending with a new agreement between focused on moving forward as a business and
Shell and the unions in late August. delivering affordable, reliable energy to our cus-
The Prelude is one of the largest FLNG vessels tomers through continued safe, stable produc-
in operation with a capacity to produce 3.6mn tion in order to meet the critical global demand
tonnes per year, although it sometimes does not for energy security,” Shell said.
reach that volume. It is also designed to produce The strike came at a time when LNG demand
1.3mn tpy of condensate and 400,000 tpy of is at a peak as Europe seeks to find alternatives
LPG. The Prelude was positioned in some 250m to Russian gas in the wake of sanctions against
of water in late December 2017 and started pro- the country for its invasion of Ukraine and coun-
duction a year later. It processed its first hydro- ter-measures by Moscow, which has now closed
carbons in June 2018 and shipped its first cargo the Nord Stream 1 pipeline.
in June 2019. Shell holds a 67.5% interest in the The halt in shipments from the Prelude
vessel, with Japan’s INPEX holding 17.5%, South affected Australia’s overall output for the period,
Korea’s KOGAS with 10% and Taiwan’s CPC with Argus reporting that Australian LNG
with 5%. exports had declined to a three-month low of
According to a statement issued by the Off- around 6.5mn tonnes, compared with 7mn
shore Alliance, which represents workers in the tonnes in July 2021. Most of Australia’s LNG
Maritime Union of Australia and the Austral- exports are delivered to Asian ports.
ian Workers Union, negotiations between the Meanwhile, while LNG remains a hot com-
employees and Shell were held over the course of modity on the global markets, Australia’s East
two years, with industrial action lasting some 76 Coast is seeing a rise in demand for gas, which
days. The OA said the halt in production had cost could mean that some exports may be curtailed
Shell “an estimated $1.5 bn in lost production.” in order to meet domestic demand.™
An enterprise agreement was reached by Shell

Week 39 30•September•2022 www. NEWSBASE .com P9