Prelude has resumed LNG cargoes shipments after being offline for 11 months as a result of technical issues, Royal Dutch Shell announced this week.
Prelude was forced to suspend production last February after an electrical trip and subsequently faced a series of technical issues that delayed the restart.
However, Shell said that Prelude was back in production and on January 8 the LNG tanker Symphonic Breeze loaded a cargo destined for Japan.
The restart couldn’t have come at a better time for Prelude and its JV partners Shell, Japan’s INPEX Corp, Korea Gas and Taiwan’s CPC Corp, with LNG spot prices at a record high after a colder than anticipated winter had depleted
The shipment comes as spot prices for LNG in Asia are at a record high following a surge in demand after a colder winter than normal had depleted gas inventories.
Prelude’s revolutionary technology, the world’s first and biggest floating LNG facility, faced teething problems from the start and shipped its first cargo two years behind schedule in 2019.
Australia’s 10 LNG projects have not been in the best position to take advantage of soaring spot gas prices of $26.30/mn Btu – up 160% from early January – with train 1 at Gorgon also offline at present for repairs to propane heat exchangers.