Singapore — Shell will load the first condensate cargo from Australia’s Prelude FLNG project at end January, according to shipping reports and sources Thursday.
The condensate will be loaded in a 80,000 mt clip over January 31 to February 2, shipping reports showed.
A vessel has not been fixed for the cargo, and shipbrokers said Shell began looking for an Aframax tanker to load the cargo Thursday.
Shell did not immediately respond to an email query seeking comment.
The destination of the cargo is unclear, though trade sources have said that the oil major will likely use the cargo within its own network of splitters and refineries.
Shell has not been actively marketing condensate cargoes from the project in the spot market, and an assay has not been made publicly available, trade sources added.
The first condensate cargo comes shortly after Shell announced on December 26 that it had started production of natural gas and condensate from the project, paving the way for the first cargoes of LNG, LPG and condensates to be shipped in coming months.
Prelude FLNG was one of the most anticipated LNG projects in recent years due to the deployment of the world’s largest floating facility, with a production capacity of 3.6 million mt/year of LNG, 1.3 million mt/year of condensate and 0.4 million mt/year of LPG.
The facility, located 475 kilometers north-northeast of Broome in Western Australia, is operated by Shell with a 67.5% stake, with Japanese explorer INPEX holding a 17.5% stake, South Korea’s KOGAS 10% and Taiwan’s CPC Corp 5%.
–Andrew Toh, [email protected]
–Wanda Wang, [email protected]
–Eric Yep, [email protected]
–Edited by Wendy Wells, [email protected]
Royal Dutch Shell (RDS.A, RDS.B) says China has awarded it a licenseto independently trade oil products in the country’s domestic wholesale oil market, allowing it to carry out purchases and sales of oil products for its customers in the Chinese market.
“The wholesale business of refined products has long been dominated by Chinese national oil companies and is typically reserved for Chinese companies,” says Kang Wu, head of S&P Global Platts Asia analytics. “The latest license to a wholly-owned foreign company is unique and set to increase the competitiveness of the wholesale market in China.”
China has been showing more willingness to work with international companies in its oil sector; Cnooc last month signed agreements with nine international oil companies for offshore exploration in the Pearl River Mouth Basin in southern China.