Prelude

Australia is a growth centre for Shell globally. We are developing large gas resources and maintain a substantial exploration portfolio off the coasts of Western Australia and Northern Territory, as well as having interests in coal seam gas opportunities in Queensland.

Shell is the 100% equity holder and Operator of the WA-371-P permit, an area which covers around 1,000 sq km in the remote Browse Basin, 475km north-northeast of Broome, Western Australia. During 2007, Shell discovered the ‘Prelude’ gas field and in March 2009 discovered the 'Concerto' gas field in the permit area.

As the gas reserves are relatively small and remote, Prelude and Concerto are well suited to development ‘in situ’ using Shell’s FLNG technology whereby gas will be processed on a floating facility directly over the gas field.

FLNG technology is an important development for the LNG industry as it reduces both the project costs and environmental footprint of an LNG development, thereby providing the potential to unlock some of Australia’s stranded offshore gas reserves.  There are currently no FLNG facilities deployed anywhere in the world.

Artists impression of FLNG

In July 2009, Shell awarded a consortium of Technip and Samsung Heavy Industries the contract for the design, construction and installation of multiple FLNG facilities over a period of up to 15 years, based upon Shell’s proprietary design. Shell is planning for the first of these facilities to be deployed at the Prelude FLNG Project.

The Prelude FLNG Project has now entered the Front End Engineering and Design phase of development.  If it proceeds, it will contribute to the Western Australian and Australian economies through tax revenues, creating hundreds of jobs and providing opportunities for Australian businesses.

The advanced design of the FLNG facility and its offshore location directly over the gasfield also reduces its environmental footprint.  As it processes the gas entirely offshore, it does not require gas compression, a pipeline to shore, onshore construction or shipping channel dredging and jetty works.

Location of Exploration Title Area WA-371-P

The FLNG facility itself will be approximately 480m long and 75m wide, and would be moored at the gas field location during the period of production. It would stay on station permanently during the operations phase, even during cyclones, and has been designed to withstand a 1 in 10,000-year weather event.

The FLNG facility will be moored in water around 250m deep, and is capable of producing around 3.5 million tonnes of LNG per year as well as Liquid Petroleum Gas and condensate for export.

Shell has been progressing environmental approvals for the Prelude FLNG Project and submitted a referral under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) in April 2008.  The Commonwealth Minister for the Environment determined that the proposed Prelude FLNG Project is a controlled action and that an Environmental Impact Statement (EIS) would be required.

The controlling provisions for the action under the EPBC Act are:

• sections 18 and 18A (listed threatened species and communities);
• sections 20 and 20A (listed migratory species); and
• sections 23 and 24A (marine environment).

In July 2009, Shell submitted its Draft Environmental Impact Statement (Draft EIS) to the Department of Environment, Water, Heritage and the Arts.

The purpose of the Draft EIS is to provide information that allows the regulator to assess the proposal against the requirements of the EPBC Act, to inform the general public about the proposal, and to demonstrate that the potential negative impacts have been addressed and potential positive benefits of the proposed project have been maximised.

The Draft EIS for the Prelude FLNG Project was open for public comment for 30 business days from 12 October, 2009, until the 20 November 2009.  Shell received three submissions from the public concerning the Project and responded to any questions within these submissions in the Supplement to the Draft EIS. 

This Supplement, in conjunction with the Draft EIS, constitutes the Final EIS for the Prelude FLNG Project.

You can download the Supplement as well as the Draft EIS by using the relevant links below.

Shell is committed to having a positive impact in the countries in which we operate. As part of Shell’s commitment to sustainable development, Shell looks to help meet the world’s growing need for energy in economically, socially and environmentally responsible ways. In practice, this involves working to deliver benefits and reduce impacts, as well as creating employment and supply chain opportunities in the countries in which we operate.

In Australia, Shell seeks to provide full, fair and reasonable opportunity for Australian industries to participate in Shell operations. As the Prelude FLNG Project progresses, Shell will ensure Australian contractors and suppliers are aware of opportunities by working with Industry Capability Network WA and the Project Connect website.

At the ProjectConnect web site (www.projectconnect.com.au/ - opens in new window) you can click on the Shell Prelude FLNG Project and view the current list of project packages which call for expressions of interest from Australian companies that consider they have the capability to deliver to the Project. You can also contact ICNWA direct through details posted on their web site (www.icnwa.org.au/ContactUs.asp - opens in new window).