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

ABC KimberleyBy 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

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Australia

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

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

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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.

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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.

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Angela Macdonald-Smith: Senior resources writer Updated Jun 28, 2022 – 10.36pm, first published at 9.22pm

Shell’s monster floating LNG project off the north-west coast has cancelled cargoes until at least mid-July amid an escalating industrial dispute, tightening the supply of gas in the already-stretched global market.

Trade unions represented through the Offshore Alliance say Shell has threatened union negotiators with its intention to shut down the facility amid the deteriorating situation.

Australian Workers’ Union national secretary Daniel Walton described the threat as “insane” given the national gas crisis, and said the energy major was trying to bully the nation into agreeing to its “hardline” demands.

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Helen Clark: Editor: 9 June 2022

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Production at Shell’s (LON:SHEL) Prelude floating liquefied natural gas (LNG) facility offshore Western Australia may soon be affected by industrial strike action after the Offshore Alliance issued the supermajor with a notice of protected industrial action starting 10 June.

Production at Shell’s (LON:SHEL) Prelude floating liquefied natural gas (LNG) facility offshore Western Australia may soon be affected by industrial strike action after the Offshore Alliance issued the supermajor with a notice of protected industrial action starting 10 June.

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“The project will also boost our customers’ security of supply, which is becoming an ever more significant consideration for global consumers.”

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Shell and Seven Group have sanctioned the $US2.5 billion ($3.5 billion) Crux gas field off Western Australia’s Kimberley coast to supply the world’s largest vessel – Shell’s Prelude floating LNG plant – on the same day unions gave notice of industrial action.

The announcement comes one week into the prime ministership of Anthony Albanese, who said he wants to be remembered for action on climate and is under pressure from the Greens to stop all new fossil fuel projects.

Wood Mackenzie analyst Michael Song said without Crux, before 2030 the 488 metre-long Prelude would not have sufficient gas to operate at full capacity.

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ArgusMedia.com

Shell restarts shipments from Australia’s Prelude FLNG

Shipments from Shell’s 3.6mn t/yr Prelude floating LNG (FLNG) facility in the Browse basin offshore Western Australia resumed on 10 April, with the first cargo departing at 21:50 Australian Western Standard Time (13:50 GMT).

Australia’s offshore security regulator the National Offshore Petroleum Safety and Environmental Management Authority (Nopsema) gave approval for shipments to resume last month following a suspension since early December after a fire broke out at the Prelude FLNG facility.

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ABC KimberleyBy Taylor Thompson-Fuller: 12 July 2022

Angela Macdonald-Smith: Senior resources writer
Updated Jun 28, 2022 – 10.36pm, first published at 9.22pm