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Shell and Technip-Samsung Consortium Take Next Step on Prelude Floating LNG Facility

Technip Shell signed two contracts with the Technip and Samsung Heavy Industries consortium for the Prelude floating liquefied natural gas (LNG) project off the coast of Western Australia.

These contracts formalize the announcement made by Shell in October 2009 that Prelude is in the engineering and design phase of development.
  • The first contract covers the front-end engineering design (FEED) elements specific to the Prelude project, taking into account the composition of the gas, local weather conditions and other site specific factors.
  • The second contract details the terms under which the floating LNG facility would be built, if the final investment decision for the Prelude project is made.
Planning for Prelude is progressing well.

The signing follows a July 2009 master agreement between Shell and the Technip-Samsung consortium to work on the design, construction and installation of multiple floating LNG facilities over a period of up to 15 years. The floating design will allow Shell to place gas liquefaction facilities directly over offshore gas fields, precluding the need for long-distance pipelines and extensive onshore infrastructure. This provides a commercially attractive approach for developing offshore fields.

Samsung is one of the largest shipyards in Korea and the world, with a capacity to build 65 commercial ships and 250,000 tonnes of offshore topside modules.

Shell is the Operator and 100% equity holder of the WA-371-P permit in the Browse Basin, approximately 475km north-northeast of Broome, Western Australia. Shell discovered the Prelude gas field in January 2007 and the Concerto gas field in March 2009, with both fields to be developed sequentially by the Prelude FLNG facility. While pending a Final Investment Decision, the Prelude FLNG Project is now in the Front End Engineering and Design (FEED) phase of development with environmental and production approvals also progressing.

Published 09/03/2010

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