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    Shell suspends work at Prelude FLNG

Summary

Production has been temporarily suspended due to work bans currently in force under Protected Industrial Action by members of the Australian Workers’ Union and Electrical Trades Union.

by: Shardul Sharma

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Complimentary, Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Security of Supply, Corporate, Exploration & Production, Import/Export, News By Country, Australia

Shell suspends work at Prelude FLNG

Shell has suspended work at its Prelude floating LNG facility offshore Western Australia due to the escalation of strike action by an Australian trade union over pay. The work stoppages began early last month. 

“Production on the Shell-operated Prelude FLNG facility has been temporarily suspended due to work bans currently in force under Protected Industrial Action by members of the Australian Workers’ Union and Electrical Trades Union that prohibit offtake activities,” a company spokesperson told NGW on July 12 via email.

The spokesperson said that until the bans on the offtake of cargoes are lifted and the plant can be safely restarted, staff required to perform safety-critical functions will remain on board while all other workers will be demobilised.

“Shell recognises the entitlement of all workers to exercise their rights, including the right to participate in industrial action. The safety and welfare of people on our sites remain our highest priority,” the spokesperson added.

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The 3.6mn metric tons/yr liquefaction plant was launched in 2019. 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%).