Shell awards ISV contract for Prelude FLNG

Shell Australia has awarded a major contract for the design, construction and operation of three Infield Support Vessels (ISVs), which will create approximately 80 local jobs and support its Prelude FLNG Project, located 475km north-north east of Broome, in Western Australia. Perth-based KT Maritime Services Australia Pty Ltd, a joint venture partnership with KOTUG International BV and Teekay Shipping Australia Pty Ltd, will supply three 42 m, 100 t bollard-pull vessels to assist in product offloading during the operations phase of the project. The ISVs will operate out of the Port of Broome on a rotation.

The vessels have been specifically designed to meet the Prelude FLNG facility’s unique marine services requirements, which include tanker berthing and offshore operations support, including emergency response, for a period of at least 25 years. The contract is expected to create approximately 80 new Australian jobs and includes commitments to the employment of indigenous trainees supported by Aboriginal Marine Services based in Perth.

“This is a very significant contract when it comes to the ongoing operation of Prelude FLNG, and our key priorities in awarding the contract were finding a partner who could deliver the vessels and services safely, and secure good local employment and training outcomes”, said Shell Australia Country Chair, Andrew Smith.

He continued: “This contract is an example of the long term benefits of Prelude FLNG. During the operations and maintenance phase we expect to spend at least US$ 200 million per year on local content. This is a very positive level of investment into the Australian economy.”

David Parmeter, Director, KT Maritime said: “To be part of Shell’s first deployment of floating LNG technology is an important milestone for our business, and we look forward to supporting the Prelude FLNG development throughout its operations.

“This joint partnership combines the technical innovation and expertise of KOTUG, with Teekay’s experience as a marine operator in Australia.”

Fellow KT Maritime Director Mr Ard-Jan Kooren said “We are proud to be working with Shell Australia in pioneering FLNG technology, and look forward to changing the game together over the decades ahead”.

Prelude FLNG

Prelude FLNG is located in the Browse Basin, approximately 475km north-north east of Broome, in Western Australia. FLNG technology allows for the production, liquefaction, storage and transfer of LNG at sea, as well as the ability to process and export liquefied petroleum gas (LPG) and condensate. FLNG removes the need for pipelines to shore, dredging and onshore works and therefore significantly limits the disturbance to the surrounding environment and reduces development costs.

The Prelude FLNG will produce 3.6 million tpa of LNG, 1.3 million tpa of condensate and 0.4 million tpa of LPG. The Prelude FLNG hull is longer than four soccer fields laid end to end and it is longer than the Empire State Building is tall. Once complete, the FLNG facility will weigh more than 600 000 t fully loaded, displacing the same amount of water as six of the world’s largest aircraft carriers. Althugh the Prelude facility is big it is also small in a sense – taking up 1/4 the area of an equivalent onshore LNG plant.

According to an independent analysis by ACIL Tasman, over the 25-year life of the Prelude FLNG project it will:

• Create approximately 350 direct and 650 indirect jobs.
• Contribute total tax revenues of more than US$ 12 billion.
• Spend US$ 12 billion on Australian goods and services. Improve Australia’s balance of trade by more than US$ 18 billion through the export of LNG, LPG and Condensate.

About KT Maritime Services

KT Maritime Services Australia Pty Ltd, a marine towage services provider, was incorporated in July 2012, and is a joint venture established by ship owners and operators, KOTUG International BV and Teekay Shipping Australia Pty Ltd.

KT Maritime has been established to provide marine towage solutions to the Australian energy and resources sectors. The three ISVs will be powered by Rotortug^® technology pioneered by KOTUG, featuring three separate azimuth propulsion units to provide improved vessel safety, power, efficiency and maneuverability.

Adapted from press release by Ted Monroe

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/12022014/shell_awards_isv_contract_for_prelude_flng_to_kt_maritime/