Posts Tagged ‘LNG’

argusmedia.com

Shell restarts Australian Prelude LNG loadings

Published date: 19 September 2022

Shell has resumed LNG loadings at its 3.6mn t/yr Prelude floating LNG (FLNG) facility in the Browse basin offshore Western Australia following a shutdown of more than six weeks because of industrial action.

The resumption comes more than three weeks since the strike, which began on 10 June, stopped on 25 August.

The shipments follow the cancellation of protected industrial action after an in-principle enterprise agreement was reached with the Australian Workers’ Union and Electrical Trades Union in relation to the Prelude facility on 23 August, Shell said on 19 September. 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.

The industrial action, which began in early June, led to Shell putting a halt to shipments leaving the facility 400 kilometres off the Kimberley coast and a shutdown in production amid soaring gas prices. read more

THE TIMES

Shell strike extension to compound energy crisis

Emily Gosden: Energy Editor

Shell Postpones Prelude LNG Turnaround Until Next Year

Shell plc SHEL recently stated that it is deferring the planned maintenance work at the Prelude floating liquefied natural gas facility, which was due to begin in September. The postponement came following the continued industrial action at the site situated off northwest Australia.

A Shell spokesperson mentioned in emailed comments, “As a result of the ongoing Protected Industrial Action and inability to complete preparation work, we are not able to proceed with the planned turnaround at this time.” read more

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

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 (SHEL) to Shut Prelude FLNG Over Industrial Dispute

Shell plc SHEL announced that it would not be able to supply liquefied natural gas (“LNG”) cargoes from its Prelude facility to its customers as the company would completely shut down its Prelude FLNG vessel, offshore Western Australia, due to unions’ escalating industrial action, which has now been extended to Jul 21.

The Offshore Alliance, which is made up of 150 union members earning more than $200,000 a year, told Shell that the workers intended to ban mooring tankers, alongside the vessel, as part of their protected action this week. The ban will disallow SHEL from unloading LNG and LPG from its storage tanks, which are anticipated to reach full capacity going forward. 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

‘The foul stench of profiteering rears its ugly head yet again…’

This is MONEY.co.uk

Shell under fire from fuel campaigners as it rakes in extra £1bn as a result of soaring petrol prices

By DAILY MAIL CITY & FINANCE REPORTER

PUBLISHED: 22:28, 7 July 2022 | UPDATED: 22:28, 7 July 2022

Shell suffered a backlash from fuel campaigners after it revealed it could rake in up to £1billion in extra cash as a result of soaring petrol prices.

The FTSE100 energy firm’s refining business, which turns crude oil into different petroleum products such as car fuel, was expected to see earnings rise by £667million to £1billion in the second quarter of 2022 compared to the first. read more

Shell boosts oil and gas asset value as refining soars

REUTERS PUBLISHED THU, JUL 7 20223:26 AM EDT

Shell said on Thursday said it would reverse up to $4.5 billion in writedowns on oil and gas assets after it raised its energy prices outlook following Russia’s invasion of Ukraine.

In an update before second quarter results on July 28, Shell said its refining margins almost tripled over the period, boosted by recovering global demand from the pandemic, a lack of refining capacity and lower fuel exports from Russia.

Earnings from oil and refined products trading were expected to be strong in the quarter but lower than the first quarter of 2022, Shell said.

Shell’s indicative refining margin rose in the second quarter to $28.04 per barrel from $10.23 a barrel in the first quarter and $4.17 a year earlier.

Oil and gas prices remained elevated in the quarter, with benchmark Brent crude averaging about $114 a barrel.

“In the second quarter 2022, Shell has revised its mid and long-term oil and gas commodity prices reflecting the current macroeconomic environment as well as updated energy market demand and supply fundamentals,” it said.

Shell increased its assumed price for Brent to $80 a barrel in 2023, up from $60 in its 2021 annual report. read more

This is MONEY

Shell may have to write off investment of more than £3bn in major Russian gas project after Vladimir Putin moves to seize control of site

By CALUM MUIRHEAD FOR THE DAILY MAIL

PUBLISHED: 21:57, 1 July 2022 | UPDATED: 21:57, 1 July 2022

Shell may have to write off an investment of more than £3billion in a major Russian gas project after Vladimir Putin moved to seize control of the site.

The Kremlin has drawn up plans to transfer ownership of the Sakhalin-2 plant, located in the far east of the country, to a new Russian firm citing national and economic security interests.

Putin has given the project’s backers a month to decide whether they will take a holding in the new company, meaning those that refuse could lose all their money. Shell owns nearly 28 per cent of the Sakhalin-2 plant worth around £3.4billion. read more

THE NEW YORK TIMES

Putin moves to seize a large gas venture in Russia’s Far East.

Shell and two Japanese companies, Mitsui and Mitsubishi, are minority shareholders in the Sakhalin-2 joint venture.

Russia is moving to take over an important natural gas joint venture, putting the investments of Shell and two Japanese trading companies, Mitsui and Mitsubishi, at risk.

A decree issued by President Vladimir V. Putin on Thursday said the project, called Sakhalin-2, which is on Sakhalin Island in Russia’s Far East and is a key exporter of fuel to Japan, would be taken over by a new company. 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