• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Even Shell Agrees with Climate Change!
  • 8 days America should go after China but it should be done in a wise way.
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Shell’s Giant Prelude LNG Could Restart Next Week

Industry sources and shipping statistics cited by Reuters indicate that Shell (SHEL.L) is expected to resume exports next month at its Prelude liquefied natural gas (LNG) project offshore Australia, where significant maintenance is almost finished, with operations likely to resume next week. 

While huge stockpiles have constrained buying so far this year, the timing of the massive floating facility's resumption to operations is likely to coincide with peak consumption in Europe and China, as winter in the northern hemisphere increases demand.

Shipping data show that the LNG tanker Symphonic Breeze is scheduled to arrive at the floating plant on December 6, indicating that the work, which began in August, is almost finished.

Shell declined to provide a direct statement to Reuters regarding the state of the repairs. However, last month, the oil giant stated that it had targeted December for a production ramp-up. 

Estimates place Prelude's cost at over $12 billion, making it the first floating LNG facility in the world to deploy innovative technology.

Prelude has been under maintenance since August, with initial assessments that it would take between two and several months. Originally, the turnaround was expected to be completed last year; however, a trade union dispute and cyclone season forced Shell to reschedule for 2023. At that time, Shell decided to undergo a shorter maintenance period to shore up production for North Asian winter demand. 

Last week, S&P Global reported that Asian LNG importers were angling to resell some December-delivery LNG cargoes amid high inventories and slower demand. 

Citing the Chongqing Petroleum and Gas Exchange, S&P Global said that Chinese companies had resold at least five LNG cargoes so far this month. 

ADVERTISEMENT

"It's a contango market now. Currently, prices in January are the highest. But prices start to move down from H2 January to H1 February by almost 30 cents," an industry source based in Singapore told S&P. 

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News