Shell to shut down Prelude LNG due to labor dispute

By Murat Temizer

ANKARA (AA) – Shell is shutting down production at its Prelude floating liquefied natural gas (FLNG) facility offshore Western Australia after union workers rejected the company's latest offer to improve pay and working conditions.

A Shell spokesperson told Anadolu Agency that production on the Shell-operated Prelude FLNG facility has been temporarily suspended on July 11 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.

"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 have been demobilized," he said.

"Shell recognizes 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," he added.

The Shell-operated Prelude FLNG facility is an offshore development facility that produces natural gas from a remote field approximately 475 kilometers (295 miles) northeast of Broome in Western Australia.

The Prelude FLNG facility produces 3.6 million tons per annum (mtpa) of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG.

The facility is operated by Shell in joint venture with INPEX (17.5%), KOGAS (10%) and OPIC (5%).