Shell, Technip, Samsung ink LNG deal
9 Mar 2010
London – Shell has signed two contracts with the Technip and Samsung Heavy Industries consortium for the Prelude floating LNG project off the coast of Western Australia. The signings formalise an announcement made by Shell last October that Prelude is in the engineering and design phase of development.
The first contract covers the FEED elements specific to the Prelude project, taking into account the composition of the gas, local weather conditions and other site specific factors. The second contract details the terms under which the floating LNG facility would be built, if the final investment decision for the Prelude project is made.
A master agreement between Shell and the Technip-Samsung consortium,. signed in July 2009, covered work on the design, construction and installation of multiple floating LNG facilities over a period of up to 15 years.
The floating design will allow Shell to place gas liquefaction facilities directly over offshore gas fields, precluding the need for long-distance pipelines and extensive onshore infrastructure. This provides a commercially attractive approach for developing offshore fields.
