Shell Prelude Floating FLNG Barge: A Potentially Catastrophic Failure of Safety Standards

Posted by John Donovan: 12 May 2023

In yet another display of negligence and incompetence, Shell has shamefully suspended production at its Prelude floating LNG facility off Western Australia. The reason? A “trip.” How convenient that Shell conveniently brushes off this serious incident with such a casual technical term, downplaying the gravity of the situation.

Shell’s spokesperson, undoubtedly well-trained in corporate spin, reassures the public that they are working “methodically” to restart production, with safety apparently being their primary concern. But let’s not forget that this is the same company that has repeatedly demonstrated a reckless disregard for safety, as evidenced by the litany of incidents that have plagued the Prelude FLNG facility. read more

RIGZONE

Prelude FLNG Loads Out First Cargo Since Fire

by Bojan Lepic| Rigzone Staff| Wednesday, January 18, 2023

Even though Shell has not confirmed any restart on its massive Prelude FLNG, Reuters reported that the Methane Becki Anne LNG tanker has begun loading.

The Methane Becki Anne was the first LNG tanker to berth at Shell’s Prelude floating LNG site off Western Australia since it was shut down after a fire.

According to Reuters, the LNG carrier vessel berthed at the Prelude plant on January 17, Refinitiv ship-tracking data showed. Refinitiv’s data also showed that LNG has already begun loading. read more

naturalgasintel.com

Shell’s Prelude FLNG in Australia Still Offline After December Fire

Shell said a small fire was detected on Dec. 21 in a turbine enclosure and quickly extinguished. However, liquefied natural gas production was suspended pending an investigation, the company said. 

“We are working methodically through the stages in the process to recommence production with safety and stability foremost in mind,” a Shell spokesperson told NGI. 

The company also is working with regulators to restart operations, but there is no timeline.  read more

Hellish working conditions on board the world’s biggest offshore gas site, Prelude

The Sydney Morning Herald

‘Forensic, fair and fascinating’: WAtoday wins at media awards

By Daile Cross: November 14, 2022 — 9.10am

Using information gathered through his unrivalled industry contact list, WAtoday business journalist Peter Milne exposed the hellish working conditions on board the world’s biggest offshore gas site, Prelude.

On Saturday night his exclusive reporting saw him win best Business, Economics or Finance report at the annual WA Media Awards, the state’s pre-eminent journalism awards. read more

abc.net.au

Shell, unions reach agreement in Prelude gas facility industrial dispute

ABC Kimberley / By Taylor Thompson-Fuller

Key points:

The industrial action began in early June

It resulted in Shell stopping shipments and suspending activity aboard

Shell and unions say they are happy to have finally reached an agreement

Industrial action aboard Shell’s floating LNG facility Prelude is set to come to an end after unions and the company reached an in-principle enterprise agreement for workers. read more

THE TIMES

Shell strike extension to compound energy crisis

Emily Gosden: Energy Editor

The Biggest of the Biggest: Prelude FLNG, the Largest Floating Edifice of All Time

A project of oil and gas giant Shell, the Prelude is simultaneously a stellar engineering achievement and a financial black hole.

13 Aug 2022, 16:11 UTC: by Razvan Calin

Over 530 yards long, 80 yards wide, more than 300 feet tall, and 660,000 tones heavy. The largest floating structure the world has ever put out to see is the Prelude offshore natural gas facility. Completed in under five years, the colossal ship-looking titan is made to work a quarter of a century in rough South Pacific waters. read more

COMMENT SENT TO JOHN DONOVAN ABOUT THE  ILL-FATED SHELL PRELUDE PROJECT BY BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL

Seems such a long time ago since we watched the Hollywood quality videos of a happy bunch of comrades in arms assembled in a circle on the helideck. Halcyon days indeed.

The future then was so  hopefull, and filled with promise.

Almost hidden in the article re the industrial dispute was the report of a loss of LNG during transfer operations, I have stressed and explained many times why this simply cannot be allowed to happen and as you publish repeatedly, in your Prelude banner against my name, I predicted many moons ago that loss of hydrocarbons from Prelude was almost inevitable. read more

The Sydney Morning Herald

Shell Prelude’s two-month $500m strike delays major maintenance

By Peter Milne: August 9, 2022

Shell has delayed major maintenance on its troubled Prelude floating gas facility after negotiations over the weekend failed to end two months of industrial action.

The delay is another setback for Shell, which spent about $US17 billion ($24 billion) to build the world’s largest vessel that has suffered a multitude of production outages and serious safety issues since it arrived in West Australian waters five years ago. read more

abc.net.au

Shell drops plans to lock out Prelude workers from Western Australian offshore gas facility

ABC Kimberley / By Taylor Thompson-Fuller

Key points:

• The company blamed a lack of assurance from unions that safety functions would be carried out

• Union representatives said the claims were a “red herring” and they would not endanger safety of workers at the rig

• Industrial negotiations proposed via mediation ground to a halt

Shell has scrapped plans to lock workers out of its multi-billion dollar offshore gas facility, Prelude, citing safety concerns.

Workers onboard the facility 400 kilometres off Western Australia’s Kimberley coast are engaged in protected industrial action in a bid to push for better wages.

The Anglo-Dutch energy giant shut down the facility and suspended production in response to strikes earlier this month. read more

Shell to enforce lockout on Prelude as industrial dispute escalates

Sean Smith: The West Australian: Wed, 20 July 2022 9:57AM

The dispute over a new pay deal on Shell’s Prelude floating LNG plant off north-west WA has escalated again, with the energy giant flagging it will lock out workers from Monday.

The decision means those workers who are not on Prelude but support the protected industrial action by the Offshore Alliance will not be paid.

Those still on Prelude will only be paid for the time they work outside industrial stoppages. read more

abc.net.au

Shell halts production on floating gas platform Prelude amid worsening industrial dispute

ABC Kimberley / By Taylor Thompson-Fuller: 12  July 2022

Key points:

• The energy giant is locked in an increasingly bitter industrial dispute with its workforce, which has disrupted production in recent weeks

• A proposed enterprise agreement was rejected by 95 per cent of workers last week

• Even though Prelude only supplies the export market, an energy expert says the move could drive gas prices even higher

Agreement ‘substandard’, union says

The disagreement over wages has seen union members ban the performance of certain tasks onboard, including a stoppage on unloading cargo onto ships for delivery at certain times.

A Shell spokesperson said production at the facility had been suspended due to the “work bans currently in force under Protected Industrial Action … that prohibit offtake activities”.

“Until the bans on the offtake of cargoes are lifted and the plant can be safely restarted, staff required to perform safety-critical functions will remain on board while all other workers will be demobilised,” the spokesperson said. read more

FINANCIAL REVIEW

Shell to shut LNG vessel after workers reject $30,000 a year pay rise

David Marin-Guzman and Angela Macdonald-Smith: July 11. 2022

Shell will completely shut down its Prelude floating LNG vessel within days in response to unions escalating industrial action over pay, threatening further disruption of the global gas market. read more

REUTERS

Shell ships LNG from Australia’s Prelude despite staff stoppages

MELBOURNE, July 8 (Reuters) – Shell SHEL.L said on Friday it had loaded and shipped a cargo of liquefied natural gas (LNG) this week at its Prelude floating LNG facility after workers scaled down industrial action at the site off northwestern Australia.

The oil and gas giant slowed output at the 3.6-million tonne per year facility last week during a series of work stoppages by unions fighting for better pay and had warned that shipments would be disrupted for at least two weeks. read more

OILPRICE.COM

Shell Warns Of Prelude LNG Disruptions

By Irina Slav – Jun 29, 2022, 9:30 AM CDT

Prolonged labor strikes at Shell’s Prelude LNG facility will disrupt shipments from it for the next two weeks, the supermajor warned this week.

“We have issued a notice to customers that cargoes will be impacted until at least mid-July due to the industrial action,” Shell said, as quoted by Reuters.

The floating LNG production facility in northwestern Australia has an annual capacity of 3.6 million tons. The news of a halt to operations adds to an already difficult situation for gas importers after Russia reduced the flow along the Nord Stream 1 pipeline by 60 percent, and an explosion took Freeport LNG out of commission for at least three months.

This latest disruption comes just three months after an outage that shut Prelude down for four months. The strike is a response to Shell’s refusal to concede to some of the demands made by the Australian Workers’ Union. read more

FINANCIAL POST

Shell says Prelude LNG shipments disrupted until at least mid-July

REUTERS: Jun 28, 2022

SYDNEY/MELBOURNE — Shell Plc said on Wednesday liquefied natural gas (LNG) shipments from its Prelude floating LNG facility off northwest Australia will be disrupted until at least mid-July due to work bans by unions fighting for better pay.

“We have issued a notice to customers that cargoes will be impacted until at least mid-July due to the industrial action,” a Shell spokesperson said in an emailed comment.

The loading disruption at the 3.6 million tonnes-a-year Prelude floating LNG facility comes just three months after Prelude resumed shipping LNG following a four-month shutdown due to a major power failure.

Workers on Prelude began 12 days of industrial action on June 10 over a pay dispute. They are set to vote on a new offer from Shell on July 7. read more