Page 10 - AsianOil week 23

AsianOil AUSTRALASIA AsianOil
Shell ships first Prelude LNG cargo
PROJECTS & COMPANIES
ROYAL Dutch Shell has shipped the rst LNG from its Prelude FLNG project o shore Aus- tralia’s northwest coast a er a string of technical issues delayed it from 2018.
e cargo was loaded onto the 490-metre long Valencia Knutsen LNG tanker on June 11, with the Anglo-Dutch super-major saying that it was bound for customers in Asia, without giving speci cs.
Prelude is projected to produce 3.6 million tonnes per year of LNG, 1.3 million tonnes per year of condensate and 400,000 tonnes per year of LPG when it reaches full capacity. e pro- ject’s partners include Japan’s Inpex, Korea Gas (KOGAS) and Taiwan’s CPC.
“How fast Prelude delivers its second and third cargo and ramps up to plateau output will be a key indicator of success,” Wood Mackenzie analyst Daniel Toleman said. While Shell has not revealed the project’s nal price tag, Wood Mac- kenzie estimates it to be around US$17 billion.
e vessel itself was rst installed at the eld two years ago, but has been plagued by mooring issues that undermined e orts to load LNG car- goes last year.
In May 2018, Shell tried to bring the LNG car- rier Gallina alongside Prelude but had to cancel the operation when the two vessels were just 50 metres apart a er a tug tow rope failed. A second attempt was made a little over a week later, but the Gallina had to be released from its moorings a er another line failure.
Shell’s Prelude FLNG project is estimated to cost US$17 billion. Image: Royal Dutch Shell
e National O shore Petroleum Safety and Environmental Management Authority (NOP- SEMA) said in a report following the incidents that there could have been a “complete moor- ing failure” with “potential for serious conse- quences” if it had occurred during LNG transfer.
Wood Mackenzie analyst Chris Meredith said in May that Prelude’s lengthy delays were unsur- prising, adding: “It’s such a novel technology and an isolated location. It was always going to be di cult.”
Prelude is the world’s biggest FLNG project and was also supposed to be the rst, but was beaten by Malaysian major Petronas’ PFLNG Satu, which launched in 2017. Both vessels are being watched closely by the industry, as their performance will speak to the commercial via- bility of using FLNG projects to monetise remote o shore gas deposits.™
WA launches consultations on emissions guidelines
POLICY
WESTERN Australia’s Environmental Protec- tion Authority (EPA) launched a 12-week con- sultation programme this week into its carbon emissions guidelines.
The EPA originally released guidelines in March requiring major new resource projects to o set all of their associated carbon emissions. But the immediate backlash from industry – including from LNG developers – as well as from the WA government saw the regulator withdraw the rules shortly a er.
EPA chairman Tom Hatton acknowledged on June 10 that the regulator’s previous provisions had caused confusion and concern and said the 12 weeks of consultation would be thorough.
“It’s a dinkum consultation, so we are abso- lutely open-minded, and we’re looking forward to the information we receive from the commu- nity,” he said.
Local daily The West Australian quoted a Woodside Petroleum spokeswoman as saying the company wanted rules that recognised the global e ect of LNG exports on carbon emis- sions. Hatton said the EPA would consider the industry’s emission argument, adding that if it were not considered, there could be legal chal- lenges to EPA recommendations.
Meanwhile, Australian Energy and Emis- sions Reduction Minister Angus Taylor claimed earlier this month that the country’s LNG exports cut 148 million tonnes of global green- house gas (GHG) emissions in 2018 on account of displaced coal consumption in Asia.
e Department of Environment and Energy said it had reached the 2018 gure by comparing the emissions from the burning of Australian LNG exports against those generated from an equivalent amount of energy found in black coal.
P10
w w w . N E W S B A S E . c o m Week 23 23•June 13•2019