Royal Dutch Shell Plc  .com Rotating Header Image

Bonaparte Surrender

By John Donovan

It seems that the alarming articles we have published about the Royal Dutch Shell Prelude FLNG project, highlighting risks based on insider information and expert opinion, may have had an unintended impact. 

According to a Dow Jones news report published today, GDF Suez SA and Santos Ltd have both withdrawn from their plans to develop their own floating liquefied natural gas project off the northern coast of Western Australia – the Bonaparte venture.

The Capital.gr article points out that budget overruns at a number of LNG developments in Australia “have underscored the risks for international energy companies weighing new projects.”

The risks include the potential of loss of life. 

Comment by Bill Campbell, retired HSE Group Auditor, Shell International

The revolutionary concept of offshore LNG installations (FLNG) is said to have economic and environmental advantages. A distinct disadvantage however is that the risks to health and safety of persons employed offshore on the LNG FPSO’s, such as Prelude, will be higher, when compared to onshore LNG plants of similar capacity, specifically the potential for loss of life.

RELATED ARTICLES

GDF Suez Retreats From Australian Floating LNG Project: The Wall Street Journal 19 June 2014

Extract

SYDNEY—GDF Suez SA and Santos Ltd. backed away from a multibillion-dollar plan to develop natural gas fields offshore Australia using untested technology that can convert gas to a liquid at sea. The decision highlights the risks confronting Australian gas-export projects…  It is also a sign that confidence in floating liquefied natural gas may be diminishing…

ARTICLE: Royal Dutch Shell Prelude to disaster?: 10 Jan 2014

ARTICLE: Shell Prelude FLNG: loss of containment of hydrocarbons almost inevitable: 21 Feb 2014

ARTICLE: What should frighten stiff Royal Dutch Shell shareholders: 15 March 2014

Comments are closed.

%d bloggers like this: