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Royal Dutch Shell News 26 December 2018

Jessica Jaganathan: December 26, 2018

SINGAPORE (Reuters) – Royal Dutch Shell said on Wednesday it has begun output at its Prelude floating liquefied natural gas (FLNG) facility in Australia, the world’s largest floating production structure and the last of a wave of eight LNG projects built in the country over the last decade.

Though the project started up later and cost more than originally estimated, it is expected to further cement Australia’s lead as the world’s biggest LNG exporter, after the country took the crown in November.

In a statement, Shell said wells have now been opened at the Prelude facility, located 475 kilometers north-north east of Broome in western Australia. This means Prelude has now entered start-up and ramp-up, the initial phase of production where gas and condensate – which is an ultra-light form of crude oil – is produced and moved through the facility.

Prelude is expected to have an annual LNG production capacity of 3.6 million tonnes, 1.3 million tonnes a year of condensate and 400,000 tonnes a year of liquefied petroleum gas (LPG).

Shell did not immediately respond to a Reuters query on when first LNG will be exported from the facility, but analysts estimate exports to start by early next year, with condensates likely to start first.

“First LNG cargo is still several weeks assuming all proceeds as planned, but the timing of first cargo and pace of ramp-up is still subject to technical risk,” said Saul Kavonic, energy analyst at Credit Suisse in Sydney.

“Given Prelude’s novelty, geographic conditions and challenges, it may be subject to greater risk to timeline from wellhead production to first cargo than an average LNG project,” he said. “We expect Shell to seek to get it done right, rather than rush things.”

Shell owns 67.5 percent of the project, while Japan’s Inpex Corp, Taiwan’s CPC Corp [MOEATA.UL] and Korea Gas Corp hold the rest of the shares.

Australia overtook Qatar as the world’s largest exporter of LNG for the first time in November, after the start-up of a number of export projects over the past three years, most recently the Ichthys facility.

The start-up of Prelude, following the ramp-up in production at Ichthys and Russia’s Yamal LNG is expected to put pressure on the Asian market next year, said Kittithat Promthaveepong, a senior analyst at FGE.

Reporting by Jessica Jaganathan; Editing by Kenneth Maxwell

SOURCE

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Charging docks will be placed at service stations in Aberdeen, Glasgow and Dunblane in a move which rolls out an already well established initiative, Shell Recharge, north of the border following its success in England. Jane Lindsay-Green, Shell UK future fuels manager, said the sites were chosen because of their proximity to main driving routes, and where there is an opportunity to reach more EV drivers.read more

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The Anglo-Dutch energy group has splashed out $175 million over the past week on the rights to develop hundreds of turbines in the waters off New Jersey and Massachusetts, which could power more than 1.5 million homes.

Dorine Bosman, vice-president for wind development at Shell, below, said its expertise from developing offshore oil and gas fields should help it to compete against established offshore wind players to secure subsidy contracts needed for the proposed wind farms to go ahead.read more

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