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Shell’s Prelude Floating LNG Project receives environmental approval

Perth – Shell’s Prelude Floating Liquefied Natural Gas Project, to be located off the northwest coast of Australia, has today received its environmental approval from the Australian Minister for Environment, Mr Tony Burke.

The approval is welcome news for Shell’s 100% owned and operated Project as it continues to progress through the engineering and design phase of development. The Prelude Project is planned to be the first to deploy Shell’s innovative Floating LNG (FLNG) technology which processes the gas at the site of the gas field rather than piping the gas hundreds of kilometres to shore.

Ann Pickard, Country Chair, Shell in Australia said: “Receiving environmental approval is an important milestone as we continue to work on the development of the Prelude Project.

“Deploying our Floating LNG technology reduces the Project’s cost and environmental footprint, as it removes the need for offshore compression platforms, long pipelines to shore, nearshore works such as dredging and jetty construction, and onshore development such as building roads, laydown areas and accommodation facilities.”

By reducing the cost of a development, FLNG can provide a means of developing smaller and more remote offshore gas resources that may otherwise stay in the ground.

The Prelude FLNG Project’s environmental impacts were assessed under the Environment Protection and Biodiversity Conservation Act 1999 through a detailed Environmental Impact Statement (EIS) that assessed potential impacts and proposed mitigants for the duration of the Project. The EIS demonstrated the Prelude FLNG Project will have a low impact on the environment including matters of National Environmental Significance, and that compared to developing the gas via a similar onshore facility, it will produce less CO2 and use significantly less materials and land and seabed area.


Shell Australia Media Relations            
Claire Wilkinson, Claire.Wilkinson@shell.com, +61 (0)8 93386271/+61 (0)416924822

Shell Investor Relations
The Hague: Tjerk Huysinga, Tjerk.Huysinga@shell.com,+31 703773996/+44 2079343856
New York: Harold Hatchett, Harold.Hatchett@shell.com, +1 212 218 3112

Note to editors:

Shell is a global, integrated energy company with operations in more than 100 countries and territories, with businesses including: oil and gas exploration; production and marketing of liquefied natural gas and gas to liquids; marketing and shipping of oil products and chemicals; and renewable energy projects including biofuels.

Shell is the Operator and 100% equity holder of the WA-371-P permit in the Browse Basin, approximately 475km north-northeast of Broome, Western Australia, and over 200km from the nearest point on the mainland. Shell discovered the Prelude gas field in January 2007 and the Concerto gas field in March 2009, with both fields to be developed sequentially by the Prelude FLNG facility. Whilst pending a Final Investment Decision, the Prelude FLNG Project is now in the Front End Engineering and Design (FEED) phase of development, and is planned to produce 3.6 million tonnes per annum (mtpa) of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG once operational.

The dimensions of Shell’s FLNG facility are approximately 480 by 75 metres, and when fully ballasted, the FLNG facility will weigh around 600,000 tonnes.

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