Shell to defer maintenance on the Prelude FLNG facility

According to Reuters, Shell Plc is deferring planned maintenance work at the Prelude floating liquefied natural gas (FLNG) facility that was due to go ahead in September because of industrial action at the site off northwest Australia.

The extensive maintenance work, called a turnaround, would be put off to next year, with the timing to depend on a range of factors including weather conditions, contractor availability and when the industrial action ends.

Shell shut the 3.6-MMtpy Prelude facility in July and told customers it would be unable to supply LNG cargoes for the duration of protected industrial action - work stoppages approved by Australia's Fair Work Commission - over a long-running pay dispute.

According to Reuters, the Offshore Alliance most recently extended its work stoppages to August 11, fighting to match an April wage deal reached with Inpex Corp at its Ichthys LNG operation.

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