Shell’s huge Prelude FLNG unit off north-west Australia is showing signs of nearing its first commercial production of LNG.
Data provided by LNG flow forecaster Eikland Energy iGIS/LNG shows that flaring from the 3.6 million tonnes per annum floating LNG production unit has been underway since early July.
But company founder Kjell Eikland said specific plant activity onboard the 600,000-tonne floater, which has two liquefaction trains, shows LNG production could be kicking off.
Earlier this month, Prelude FLNG took on a second commissioning cargo when the Shell-controlled, 170,000-cbm Methane Mickie Harper (built 2010) discharged at the unit carrying a full cargo of LNG loaded in Peru.
Observers suggested Shell may be burning off these recently delivered volumes during final testing and speculated that this could signal a mid-to-late-November start-up for exports.
In June, Shell's 137,001-cbm LNG carrier Gallina (built 2002) delivered a first cool-down cargo to Prelude FLNG in advance of the start of flaring from the unit.
Time frame surprises
Some observers have been surprised by the length of time since flaring started, with, as yet, no exports secured from the unit, which arrived on site in July 2017. In contrast, Golar LNG’s 1.2-mtpa unit off Cameroon — the Hilli Episeyo — was flaring for just over two months before shipping its first volumes.
But they said Shell is dealing with richer gas, a large and complex floater, and may well be taking a very cautious approach to testing.
All eyes are on Prelude FLNG — the world’s largest FLNG unit — that Shell has said it expects to see cash flow from this year. But, other than this, the energy major has consistently said it does not give any details on timelines in relation to the project’s start-up.
Aside from LNG, the unit has been designed to produce 1.3 mtpa of condensate and 0.4 mtpa of LPG.
Prelude FLNG, which is widely seen as costing more than $12bn, is located 475 kilometres (295 miles) north-east of Broome and is moored in 250 metres of water.
Once it is operational, Shell has said the FLNG unit is expected to receive one LNG carrier per week on average.
Shell has a 67.5% stake in Prelude FLNG, with Inpex on 17.5%, Kogas holding 10% and CPC 5%.
