Overview

The Prelude FLNG (Floating Liquefied Natural Gas) project, operated by Shell Australia, is located in the Browse Basin, approximately 155 nautical miles offshore of Western Australia. Constructed by Samsung Heavy Industries Shipyard at the Geoje in South Korea, the facility operates at a water depth rating of 250 meters. It is anchored near its home port in Fremantle, Australia. 

The Prelude FLNG facility can process 3.6 million tons per annum (mtpa) of LNG, 0.4 mtpa of LPG, and 1.3 mtpa of condensate. The final investment decision was made by Shell in 2011, commenced production in 2019, and represents a significant investment with a total project cost of USD 12 billion. The facility has a crew capacity of 220 personnel. Ownership of the Prelude FLNG project is distributed among several major stakeholders: Shell holds the majority share at 67.5%, followed by Inpex at 17.5%, CPC at 5%, and Kogas at 10%. 

Prelude FLNG location

The Prelude FLNG facility is situated in the Browse Basin, off the northwest coast of Western Australia. It lies approximately 155 nautical miles north-northeast of Broome, at the precise coordinates of -15.2539252 latitude and 123.5381736 longitude. Samsung Heavy Industries undertook the construction at Geoje Shipyard in South Korea. 

Project Background

Shell made the final investment decision (FID) on the Prelude FLNG project on May 20, 2011. Engineers dedicated over 1.6 million hours to the project's engineering and design phase. Since the FID, Shell has welcomed three joint venture partners: INPEX (17.5%), KOGAS (10%), and CPC Corporation (5%). Significant work occurred at the Samsung Heavy Industries (SHI) shipyard in Geoje, South Korea, where the Prelude FLNG hull and topsides were constructed.

In November 2013, the Shell's Prelude FLNG ship hull was launched. In Geoje, up to 5,000 workers were involved daily, with topside modules installed and early commissioning beginning. The Prelude FLNG turret mooring was constructed in Dubai, and drilling operations off the coast of Western Australia saw the first production well completed by late December 2014.

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The subsea system design and construction, including the installation of essential equipment, was completed by late 2014 in Malaysia. The Prelude loading arms were constructed and successfully tested in France, while Darwin, Australia, became the main onshore supply base, receiving necessary parts and equipment. Recruitment began in 2012, with over 1,200 Australian technicians employed and relocated to Geoje for operations.

Design and Engineering Details

The Prelude FLNG has a length of 488 meters and a width of 74 meters, with topsides weighing more than 50,000 tonnes each. The FLNG weighs 600,000 tonnes when fully loaded, making it six times heavier than an aircraft carrier. The facility is designed to be towed to its site and moored at a water depth of 250 meters using four groups of mooring chains held by suction piles embedded in the seabed. 

The FLNG can withstand category five cyclones and operate under severe metocean conditions (Metocean concerns understanding meteorological and oceanographic conditions in offshore coastal engineering or renewable energy projects), making it suitable for use in distant offshore fields. The hull, constructed with over 260,000 tonnes of steel, contains tanks for gas storage. Seven boiler units are installed on the topsides for power generation and LNG production processes. The facility incorporates approximately 3,000 kilometers of electrical and instrumentation cables, demonstrating the complexity and scale of its engineering.

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The storage tanks can hold the same amount of liquid as 175 Olympic-sized swimming pools. The facility is equipped with 6,700 horsepower thrusters for positioning, and it draws 50 million liters of cold water from the ocean every hour to cool the natural gas. The turret, which is 93 meters (305 feet) high, runs through the facility and is secured to the seabed by mooring lines. 

Turning natural gas into LNG involves freezing it to -162° Celsius (-260° Fahrenheit), shrinking its volume by 600. Prelude FLNG's annual LNG production could meet 117% of Hong Kong's annual natural gas demand, highlighting its significant contribution to global energy supplies. The facility is expected to remain at its location for 20-25 years, developing gas fields and providing substantial economic benefits.

Project Timeline

Project Cost

The Prelude FLNG project has a total project cost of  USD 12 Billion.

Contractors

Additional Contractors

• GE Oil & Gas (supplied steam turbine-driven compressor trains)
• Kawasaki Heavy Industries (KHI) (provided boiler units)
• Norsafe (delivered free fall lifeboats)

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Maintenance & Service Contractors

• Monadelphous Group (long-term maintenance and modification services - awarded Nov 2015)
• Atkins (inspection and maintenance integrity modules - awarded Nov 2015)
• MRC Global Australia (five-year maintenance, repair, and operation service - awarded Mar 2016)

Subcontractor

Decmil Australia (design and construction of Darwin Onshore Supply Base - awarded Mar 2013)

Suppliers

Environmental Compliance

Shell demonstrates its commitment to environmental compliance by adhering to regulatory standards established by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). The Environment Plans (EPs) are integral to this compliance framework, which meticulously detail all environmental impacts and risk mitigation strategies associated with offshore oil and gas activities. Shell submitted a revised EP to NOPSEMA, incorporating insights gleaned from operational experience since the commencement of activities at the Prelude FLNG facility in 2017. 

Current Prospects

From 2022 to 2023, the Prelude FLNG facility's operational timeline was marked by significant challenges and interruptions. In December 2021, a fire incident during a power outage necessitated the facility's shutdown, which was able to resume operations in April 2022. However, in June 2022, industrial action led to another shutdown due to a pay dispute with Shell, with production disruptions continuing until September 2022. 

Read: Global Floating Liquefied Natural Gas (FLNG) Market Growth Outlook to 2028

Despite a brief resumption, production was again halted in December 2022 due to a small fire, with operations resuming in January 2023. The facility's performance in 2022 was notably lower than the previous year, with an average capacity utilization of just 32%, as reported in the 2023 World LNG Report by IGU. Further interruptions occurred in September 2023, when Shell scheduled several months of maintenance shutdown, followed by a resumption of operations in December 2023.

Conclusion

The Prelude Floating LNG project, operated by Royal Dutch Shell, stands as the world's first Floating Liquefied Natural Gas facility, strategically located in the Browse Basin off the northwest coast of Australia. Constructed by Samsung Heavy Industries in South Korea, this monumental project has a production capacity of 3.6 million tons per annum (mtpa) of LNG, 0.4 mtpa of LPG, and 1.3 mtpa of condensate. 

With a total project cost of USD 12 billion and ownership shared among major stakeholders, including Royal Dutch Shell, Japan's Inpex, CPC corporation, and South Korea's Kogas, the Prelude FLNG project represents a significant and strategic investment in Australia's energy infrastructure. Despite the operational challenges, the facility remains a key player in global LNG production, contributing to energy supply diversification and economic development.

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