Japan’s INPEX said today that through its subsidiary, INPEX Oil & Gas Australia, it has agreed to acquire a 17.5% participating interest in the Prelude FLNG Project from Shell Development (Australia), a subsidiary of Royal Dutch Shell.
The Prelude FLNG Project is located in WA-44-L, approximately 475km north-northeast of Broome, off the coast of Western Australia, consisting of the Prelude gas field and the Concerto gas field. These gas fields will be developed utilizing a FLNG facility, and will produce at least 3.6 million tonnes per annum of LNG, along with 0.4 million tonnes per annum of LPG (liquefied petroleum gas) and approximately 36 thousand barrels per day of condensate at peak.
Shell made the final investment decision on the Prelude FLNG Project in May 2011, and is likely to be the world’s first FLNG project. Shell is now proceeding with the development of the Prelude FLNG Project, targeting its production start-up around 10 years from when the Prelude gas field was first discovered in early 2007.
INPEX is currently preparing for the development of the large-scale Abadi LNG Project in Indonesia as Operator. Planning to utilize FLNG and considering other technical characteristics of the Abadi LNG Project, INPEX selected Shell as the strategic partner for the development, who is a world leader in LNG business and, in particular, of large scale offshore gas development activities.
“ Participating in the Prelude FLNG Project will enhance INPEX’s FLNG experience, and will help in timely delivery of the Abadi LNG project. It will also contribute to promote wider collaborative relationship between INPEX and Shell including the Prelude FLNG Project and the Abadi LNG Project ,” INPEX said in a statement.
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LNG World News Staff, March 16, 2012; Image: Shell