Shell Highlights Benefits of Prelude Project to Australia

Shell Highlights Benefits of Prelude Project to Australia

Royal Dutch Shell plc provided an update on the Prelude floating liquefied natural gas (FLNG) project off West Australia ahead of the Australian Gas Technology conference (AGT) in Perth, Australia July 2.

Shell confirmed that taxes from the project will be around $11 billion over the life of the project, while the majority of people working on the FLNG facility will be Australians, following criticism from Western Australia Premier Colin Barnett that FLNG projects off Western Australia were environmentally risky and would bring few benefits to the state.

The Prelude FLNG project had strong cost fundamentals and would make a significant contribution to the Australian economy, Shell Australia’s General Manager for Production, Michael Schoch said in a media statement released by the AGT's official public relations agency Avviso PR.

“We estimate that Prelude will bring benefits to Australia of some $41.3 billion (AUD 45 billion) over the life of the project, of which taxes would be around $11 billion (AUD 12 billion). The overwhelming majority of people who work on the FLNG facility will be Australians. By 2015, we expect to double the workforce in Shell Australia’s Perth office from 500 to 1,000 – and many of these new people will be working on Prelude,” he added.

“FLNG is one of a number of responses the Australian LNG sector can make as we face customers seeking diversity of supply, and increasing competition from lower cost suppliers.”

With FLNG, Shell will be able to produce natural gas at sea, turn it into LNG and then transfer it directly to the ships that will transport it to customers. This will open up new opportunities for countries looking to develop their gas resources and bring more natural gas to market.

Jon Mainwaring contributed to this report.

Chee Yew has covered the upstream and downstream sectors of the oil and gas industry in Asia for more than 15 years. Email Chee Yew at


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Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Andrey | Jul. 4, 2013
Gas is main source of great income in Russia. It seems once Prelude LNG shows up in European market, GasProm yelds much less money compare now. It results more taxes to fill the budget.

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