Only a prelude to more floating gas plants
But the global leader in floating gas processing would not reveal whether it would develop more than one floating LNG plant for Woodside Petroleum's Browse joint-venture project.
"I don't believe any one of the players has actually mentioned any numbers," Shell Australia general manager for production Michael Schoch told a gas technology conference in Perth. "I'm not privy to the Browse discussions and indeed that's something for the operator to lead and the joint-venture players to make a decision on."
Woodside recently agreed to use Shell's floating LNG technology if it proceeds with a floating option for its Browse gas project in Western Australia's Kimberley.
The agreement, with Shell, Woodside's main shareholder and a participant in the project, came after Woodside chief executive Peter Coleman said floating LNG technology had the potential to commercialise the Browse gas resources faster than any other option.
It would involve Browse Basin gas being processed on a large purpose-built vessel stationed far off the coast, which has angered Premier Colin Barnett, who believes an onshore plant will bring more benefits to the state, including jobs.
Mr Schoch expects Prelude will be the first of several floating LNG projects in the state.
"Expertise gained from the Prelude project will help develop other floating LNG opportunities, with the expertise residing here and the world will be looking at us."
Prelude, off the north-west coast of the state, is expected to produce 3.6 million tonnes of LNG a year.
Mr Schoch said Australians would make up most of the workers on the floating processing plant, and by 2015 Shell expects the workforce of its Perth head office to have doubled to 1000.
Prelude is expected to deliver $45 billion in economic growth for the nation, including $12 billion in taxes.
Frequently Asked Questions about this Article…
Shell plans to build more floating liquefied natural gas (LNG) plants following its world‑first Prelude project. Shell Australia production general manager Michael Schoch says Prelude is expected to be the first of several floating LNG projects, with the expertise gained helping develop future opportunities.
Prelude is Shell's world‑first floating LNG processing project off the north‑west coast of Western Australia. It is expected to produce about 3.6 million tonnes of LNG a year.
Shell confirmed it has floating LNG technology that Woodside has agreed to use if Woodside proceeds with a floating option for the Browse project. However, Shell would not say whether it would build more than one floating plant for the Browse joint venture, and Michael Schoch said he wasn't privy to Browse discussions — that decision rests with the project operator and joint‑venture partners.
Woodside's chief executive Peter Coleman has said floating LNG technology could commercialise the Browse gas resources faster than other options, which is why the floating option is being seriously considered.
A major concern is that a floating plant, which processes gas on a large vessel stationed offshore, may deliver fewer local benefits than an onshore facility. Western Australian Premier Colin Barnett has argued an onshore plant would bring more state benefits, including jobs.
Shell says most workers on the floating processing plant will be Australians. Shell also expects its Perth head office workforce to have doubled to about 1,000 employees by 2015 as a result of the project and related activity.
Prelude is expected to deliver around $45 billion in economic growth for Australia, including approximately $12 billion in tax revenue.
Shell says the technical and project expertise developed on Prelude will support the development of other floating LNG opportunities. That know‑how, based in Australia, is expected to attract global interest and help advance additional projects.
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