Australian Floating LNG project given approval 22 November 2010 Government environmental approval has been granted for Shell’s Prelude Floating Liquefied Natural Gas (LNG) facility in the Browse Basin, located off Australia’s northwest coast. Floating LNG is the use of a specialised floating facility to process gas into LNG for export directly at the gas field. The Australian Federal Environment Minister, Tony Burke, has approved the project under strict conditions to help ensure that the marine environment will be protected. Martin Ferguson, Australia’s Minister for Resources and Energy, noted that the Prelude LNG facility will be the first use of innovative floating LNG technology anywhere in the world. “There are environmental and commercial benefits from using floating LNG, through eliminating the need for lengthy and expensive offshore pipelines and the requirement for onshore facilities including the LNG plant, jetties, roads, power and other supporting infrastructure,” Mr Ferguson said. "Floating LNG opens up the prospect of Australia developing smaller and isolated gas fields around the north and west of our coastline,” he added. “Many of these fields are not practical to develop through conventional land-based LNG projects, which require large reserves and expensive offshore infrastructure and pipelines, or as domestic gas projects, because they are too far from the customers." Floating LNG projects are either in development or being proposed in a number of other locations around Australia, including at James Price Point, Karratha and Onslow in Western Australia and in Darwin in the Northern Territory, while last month Queensland’s first coal seam gas-based LNG plant was given the go ahead. Shell will make a final investment decision on the Prelude Floating LNG Project in 2011. More information |