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Prelude halts LNG production

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LNG Industry,

According to Reuters, Royal Dutch Shell has temporarily halted production at the Prelude floating LNG (FLNG) facility due to an electrical trip on 2 February.

A spokeswoman told Reuters that work is currently being carried out so that production can resume as soon as possible.

The spokeswoman said: “Due to some technical issues, there was a delay in starting up the back-up diesel generators which impacted certain amenities on board. These issues are being resolved, and we have made the proactive decision to temporarily reduce the number of people on board.”

According to Reuters, Asian spot LNG prices LNG-AS are currently falling to a record low, as the coronavirus epidemic has impacted China’s gas demand. As a result, trade sources claim that the impact of the production stoppage at the FLNG facility will be minimal.

One industry source said: “There is still too much gas and very little demand.”

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