Shell Starts Production At World’s Largest FLNG Platform

Royal Dutch Shell Plc (NYSE: RDS.A) said Dec. 26 it has begun output at its Prelude FLNG facility in Australia, the world’s largest floating production structure and the last of a wave of eight LNG projects built in the country over the last decade.

Though the project started up later and cost more than originally estimated, it is expected to further cement Australia’s lead as the world’s biggest LNG exporter, after the country took the crown in November.

In a statement, Shell said wells have now been opened at the Prelude facility, located 475 km (295 miles) north-northeast of Broome in Western Australia. This means Prelude has now entered start-up and ramp-up, the initial phase of production where gas and condensate—which is an ultra-light form of crude oil—is produced and moved through the facility.