Federal approval Prelude FLNG development

Shell’s proposed floating LNG (FLNG) facility, to be located off the northwest coast of Western Australia at the Prelude Gas Field, has received environmental approval from Federal Environment Minister Tony Burke.

Shell Australia Chair and Executive Vice President for Exploration and Production Ann Pickard said “Receiving environmental approval is an important milestone as we continue to work on the development of the Prelude project.”?

“Deploying our FLNG technology reduces the project’s cost and environmental footprint, as it removes the need for offshore compression platforms, long pipelines to shore, nearshore works such as dredging and jetty construction, and onshore development such as building roads, laydown areas and accommodation facilities,”? Ms Pickard said.

Shell is the sole owner and operator of the Prelude Gas Field, and is now progressing to the engineering and design phase of its FLNG facility.

The project’s environmental impacts were assessed under the Environment Protection and Biodiversity Conservation Act 1999 through an environmental impact statement (EIS).

Shell said that its EIS demonstrated the Prelude project’s low impact on the environment, including low carbon emissions and the use of fewer materials and land area.

The Prelude FLNG plant will remain over the field for 25 years, producing up to 3.6 MMt/a of LNG, 0.4 MMt/a of LPG and 1.3 MMt/a of gas condensate. A final investment decision on the project is expected from Shell in early 2011, after which time the FLNG facility is expected to take approximately five years to construct and commission.

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