Logistics News

World first floating LNG facility wins MPF status

Infrastructure Minister Albanese confers Major Project Facilitation (MPF)status on Shell’s $12 billion Floating Liquefied Natural Gas project

July 12, 2011

Infrastructure Minister Anthony Albanese has conferred Major Project Facilitation status on Shell’s $12 billion Floating Liquefied Natural Gas project (FLNG).

If given the go-ahead, the project would develop the world’s first floating liquefied natural gas facility.

The project intends to develop the Prelude and Concerto gas fields located in the Browse Basin 475 kilometres north of Broom in Western Australia.

A specially built vessel would be deployed to extract the gas from beneath the seabed and liquefy it on-board rather than piping it to a land-based plant for processing as is usually the case.

Fully operational, the 488 metre long vessel would weigh as much as six aircraft carriers and be strong enough to withstand a ‘Category 5’ cyclone.

Minister Albanese says the project has the potential
to bring new, revolutionary technology to Australia and promote even greater investment in our North West resources province.

“It would also help meet the world’s growing demand for cleaner sources of energy,” he says.

By declaring the project ‘strategically significant’, the Minister is directing departmental officials to expedite assistance to
Shell as it navigates the required planning and environmental approval processes.

“This declaration does not however guarantee a successful outcome,” Albanese warns.

Albanese says the project would create up to 500 jobs during construction and further 350 long term jobs once the facility is in place as well as generate billions in additional taxes and export earnings.

Keen to maximise the lasting benefits of its multi-billion dollar investment into Australia’s resources sector, Shell is already working with local tertiary institutions on a program to train Australians in the use of FLNG technology.

“Over the longer term, the success of this project would pave the way for the exploitation and commercialisation of other ‘stranded’ offshore gas reserves which are currently too difficult to access and too costly to develop,” Albanese says.

The Gillard Labor Government has granted or renewed MPF status to projects collectively worth more than $100 billion with the potential to create over 40,000 jobs across the vital sectors of infrastructure, mining and resources, and advanced manufacturing.

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