• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 6 mins https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
  • 13 hours Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 1 day Pollster Frank Luntz released a poll today showing 90% of those that voted for Trump in November would vote for him again.
  • 6 hours Tonight Twitter took down Trump's personal account permanently. Trump responded on the POTUS account.
  • 1 day Do Republicans like Liz Cheney, Adam Kinzinger, Mitt Romney and now McConnell think voting for Impeachment can save the party ? Without Trump base what is the Republican constituency ? It's over.
  • 11 hours CNN's Jake Tapper questions double amputee purple heart recipient GOP Rep's commitment to democracy. Tapper is a disgrace.
  • 1 day ICE Engines Hear to Stay Regardless of War Against
  • 12 hours A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 15 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 1 day Minerals, Mining and Industrial Ecology
  • 1 day a In 2020, we produced and delivered half a million cars.
  • 1 day Trump Supporters Just Handed a Huge Propaganda Victory to China
  • 2 days Evidence is evidence, voter fraud by state
PetroChina Looks To Double Shale Gas Output By 2025

PetroChina Looks To Double Shale Gas Output By 2025

State energy giant PetroChina plans…

Ukraine Is Failing To Capitalize On Its Gas Potential

Ukraine Is Failing To Capitalize On Its Gas Potential

Ukraine’s 2019 upstream licensing round…

Rising LNG Prices Welcome News For U.S. Exporters

Rising LNG Prices Welcome News For U.S. Exporters

U.S. LNG exporters are upbeat…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Shell Restarts Production At Huge Prelude Project As LNG Prices Soar

Shell has restarted production of liquefied natural gas at its Prelude offshore project in Australia after almost a year's suspension.

"LNG cargoes have resumed from Shell's Prelude FLNG facility," Argus reported, citing a company statement.

The restart of the 3.6-million-ton facility comes at the best possible time. A cold spell in China has pushed LNG prices to the highest in years, erasing worry about an oversupplied market as Chinese buyers struggle to stock up on the fuel.

Prelude was planned as a flagship floating LNG project for the Anglo-Dutch supermajor. Like most other large-scale offshore LNG projects, however, it ran into delays and cost overruns. Shell and its peers have recently been forced to cancel other LNG projects as the competition is fierce. It resigned itself to focusing on the ones already in operation.

When Prelude stopped pumping gas last February, there was concern that the project, estimated to have cost anywhere between $9.25 billion (A$12 billion) and $131 billion (A$17 billion) to build, may flop as its breakeven price was estimated by analysts at $20 per 1,000 cu ft of natural gas, versus prices of $2-3 per 1,000 cu ft, according to the U.S. Energy Information Administration and Henry Hub price updates.

"Prelude has been a 'white elephant' — we always felt it was a technology looking for a solution rather than the other way round," Bernstein analyst Neil Beveridge told the Financial Times in comments on the restart of the facility.

The intention may have been to develop a technology that can then be used to build many such facilities, as another analyst, Saul Kavonic, told the FT, but it ended up the wrong way round.

"The industry FLNG ambition to 'design one build many' has unfortunately become 'design many build one' in some quarters following disappointing project execution," Kavonic told the FT. "Only more modest niche applications are now seen as plausible."

By Irina Slav for Oilprice.com

More Top Reads from Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • George Doolittle on January 11 2021 said:
    Easier mess to clean up than a nuclear power plant. "Sunk capital" it is true can be only estimated and "made true" only once the "object" starts producing cash flow and indeed free cash flow.

    Clearly there are massive energy and indeed food shortages in China at the moment.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News