Royal Dutch Shell has decided to go ahead with its Prelude floating liquefied natural gas (FLNG) project in Australia, which will see it build the world's first FLNG facility.
The platform will be moored around 200 kilometres off the Australian coast and will liquefy gas from offshore fields onboard by cooling.
Shell will now commence detailed design and construction of what will be the world's largest floating offshore facility, in a ship yard in South Korea.
At 488 metres long, Shell says the plant will be the largest floating offshore facility in the world. When fully equipped and with full storage tanks, it will weigh around 600,000 tonnes—of which around 260,000 tonnes will consist of steel.
Designed to withstand severe cyclones, the plant will chill offshore gas to minus 162 Celsius and shrink it in volume by 600 times, ready for delivery to markets worldwide. Until now, the liquefaction of offshore gas has always involved piping the gas to a facility onshore.
According to Shell, having the gas-processing and gas-liquefaction facility located at the site of an offshore field removes the need for: gas-compression platforms; long subsea pipelines to shore; near-shore works, such as dredging and jetty construction; and onshore construction, including roads, storage yards and accommodation facilities.
Commenting, Malcolm Brinded, executive director of Shell’s Upstream International division, said: "Our innovative FLNG technology will allow us to develop offshore gas fields that otherwise would be too costly to develop.
“Our decision to go ahead with this project is a true breakthrough for the LNG industry, giving it a significant boost to help meet the world's growing demand for the cleanest-burning fossil fuel."
Brinded concluded: "FLNG technology is an exciting innovation, complementary to onshore LNG, which can help accelerate the development of gas resources.”
The FLNG facility will stay permanently moored at the Prelude gas field for 25 years, and in later development phases should produce from other fields in the area where Shell has an interest, the company said.
The Prelude field is located approximately 475 kilometres north-north-east of Broome, Western Australia. Shell plans to have seven subsea wells at the Prelude field initially, from where gas will travel through flexible pipes to the FLNG facility.
Shell said its upstream investment in Australia could reach $30 billion over the next five years, including the Prelude and Gorgon projects, as well as ongoing exploration and feasibility studies.
