A fire aboard Shell's huge floating LNG (FLNG) unit Prelude LNG off Australia caused production to be shut down.

Australian media reports said the fire broke out in an electrical equipment area at around 2300 local time on Thursday 2 December.

They quoted a Shell spokesman as saying the fire triggered automatic fire systems and was extinguished before it spread further.

He said that as a result the FLNG unit lost its main power and the facility moved to operate on backup diesel generators.

All workers were said to be safe and accounted for.

Shell said work is underway to restore main power. Production on the Prelude has been suspended temporarily.

Australian offshore safety regulator NOPSEMA has started an investigation.

Prelude's remote location makes access and repairs more challenging.

The unit has been operating for most of this year after restarting production in late 2020 following an 11-month shutdown due to serious technical problems.

Prelude, which has the capacity to produce 3.6 million tonnes per annum of LNG, in addition to LPG and condensate output, was taken offline in February 2020 after an electrical trip lead to a series of extensive investigations and repairs.

TradeWinds was told that the 2020 repair work found that seawater had got into the extensive and highly complex electrical wiring on board, causing corrosion and complicating the job of restoring power systems.

A fall-off in LNG demand and crewing difficulties in the face of the global pandemic spread during 2020 offered Shell and its partners a window to ensure thorough repairs were completed on the remotely located unit.

But LNG demand has since skyrocketed with producers keen to cash in on the current high prices seen this year.

Prelude started up in June 2019. It exported eight cargoes before its shutdown in early 2020.

The unit — the world's largest floating structure — is located about 475 km (295 miles) north-northeast of Broome in Western Australia.

Shell controls a 67.5% stake in the Prelude FLNG project, with Japan’s Inpex holding 17.5%, South Korean state utility Korea Gas Corp 10% and CPC of Taiwan 5%.

Prelude FLNG snapshot
  • Vessel type: Floating LNG unit
  • LNG production capacity: 3.6 mtpa
  • Condensate production capacity: 1.3 mtpa
  • LPG production capacity: 0.4 mtpa
  • Builder: Samsung Heavy Industries
  • Topsides: Technip
  • Overall length: 488 metres
  • Beam: 74 metres