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Shell’s Prelude FLNG project receives environmental approval

LNG Industry,

Shell’s Prelude Floating LNG project, which will be located off the northwest coast of Australia, has received environmental approval from the Australian Environment Minister Tony Burke.

The approval is welcome news for Shell’s 100% owned and operated project as it continues to progress through the engineering and design phase of development. The Prelude project is planned to be the first to deploy Shell’s innovative floating LNG (FLNG) technology, which will allow the company to process any gas extracted on site rather than piping it hundreds of miles onshore.

Ann Pickard, Country Chair, Shell in Australia said, “Receiving environmental approval is an important milestone as we continue to work on the development of the Prelude project.

“Deploying our Floating LNG technology reduces the project’s cost and environmental footprint, as it removes the need for offshore compression platforms, long pipelines to shore, nearshore works such as dredging and jetty construction, and onshore development such as building roads, laydown areas and accommodation facilities.”

By reducing the cost of a development, FLNG can provide a means of developing smaller and more remote offshore gas resources that may otherwise stay in the ground.

The Environmental Impact Statement (EIS) demonstrated the Prelude FLNG Project will have a low impact on the environment including matters of national environmental significance, and that compared to developing the gas via a similar onshore facility, it will produce less CO2 and use significantly less materials and land and seabed area.

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