Shell's Prelude LNG cargoes disrupted as industrial dispute boils over
By Energy Voice
29/06/2022, 3:06 am Updated: 29/06/2022, 3:07 am
The Prelude FLNG - world's largest floating liquefied natural gas by Shell
Shell (LON:SHEL) said liquefied natural gas (LNG) cargoes from its Prelude floating LNG (FLNG) unit will be disrupted due to a protracted industrial dispute with workers over wages on the vessel offshore Australia.
Shell has confirmed that while Prelude, off north-west Australia, would remain in production, shipments of LNG would be disrupted out to at least mid-July and it has notified customers.
It marks yet another reputational blow to the project with a troubled history that has been tarnished by cost blow-outs, construction delays and safety issues that have dented production.
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The loading disruption at the 3.6 million tonnes per year LNG facility comes just three months after Prelude restarted shipping LNG following a four-month shutdown due to a major power failure.
Workers on Prelude started 12 days of industrial action on 10 June over a pay dispute. They are due to vote on a new offer from Shell on July 7.
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