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Shell's Prelude floating LNG unit begins production offshore Australia

Royal Dutch Shell PLC's Prelude floating liquefied natural gas facility offshore Australia has opened wells to begin production, the global oil supermajor announced Dec. 25.

"Prelude now enters start-up ... which is the initial phase of production where gas and condensate is produced and is moved through the facility," Shell said in a statement. "Once this has concluded the facility will be stabilized for reliable production of [liquefied petroleum gas] and LNG."

Prelude, northeast of Broome in Western Australia, will produce at least 5.3 million tonnes per annum of liquids, which includes 3.6 million tonnes per annum of LNG, 1.3 million tonnes per annum of condensate and 400,000 tonnes per annum of liquefied petroleum gas.

The Anglo-Dutch oil major owns 67.5% of the project with Inpex Corp., Korea Gas Corp. and CPC Corp. Taiwan, which hold stakes of 17.5%, 10% and 5%, respectively.