FLNG news shell accelerates prelude FLNG restart to meet surging global LNG demand

In the face of potential labor strikes threatening operations at the Chevron-operated Gorgon liquefied natural gas (LNG) facility in Western Australia, Shell is taking proactive measures to temporarily shut down its largest Floating Liquefied Natural Gas (FLNG) facility, Prelude FLNG. To mitigate profit loss amid soaring global LNG prices, the repair timeline has been dramatically reduced from one year to just two months.

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In June 2019, the Prelude LNG facility suffered a fire and a subsequent series of production stoppages due to power outages. In 2021, the facility experienced a complete power outage. It is evident that technical issues have yet to be fully resolved, with the most recent technical shutdown reported in May 2023. Shortening the maintenance period for Prelude will have a negative impact on its quality and won’t address all of the facility’s issues. However, Shell is determined not to miss out on the high demand for LNG that typically accompanies the arrival of winter in the Northern Hemisphere.

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The accelerated restart of Prelude FLNG reflects Shell’s commitment to adapt and respond to rapidly changing market conditions, ensuring a reliable supply of LNG in times of heightened demand. While the shortened repair period may not solve all of the facility’s challenges, it underscores Shell’s dedication to delivering energy solutions and serving global LNG markets effectively.Amidst the potential for labor strikes affecting prices, particularly in Australia where Chevron’s natural gas and LNG assets are under pressure, Prelude FLNG is the largest of these facilities. Located 475 kilometers off the Australian coast, it boasts an annual production capacity of 3.6 million LNG.

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