Shell ramps up Prelude LNG production: press

Shell's Prelude LNG has shipped its first cargo since a strike action by an Australian trade union forced it to curb production schedules last week, Reuters reported July 8.

The Australian Workers Union had imposed work bans preventing Prelude LNG employees from attending the facility, citing pay conditions. It also claimed employees face undercutting by contractors brought on to undertake similar duties.

The AWU has since softened its stance, which had threatened to heap further pressure on international LNG flows, particularly into east Asia where three of Prelude LNG's shareholders are situated. When operating normally, Prelude usually loads an LNG tanker every seven to 10 days, Reuters said.

Since launching in 2019, the 3.6mn metric tons/yr liquefaction plant, situated off northwestern Australia in the Browse Basin, has suffered multiple operational setbacks. It spent the entire first quarter of this year offline due to an unexpected fire incident and power outages. Shell owns a 67.5% stake in Prelude LNG, followed by Japan's Inpex (17.5%), South Korea's KOGAS (10%) and Taiwan's CPC (5%).