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Australia home to world's first floating LNG Project

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The Hon Martin Ferguson AM MP

Australia Home to World's First Floating LNG Project

20 May 2011

Shell's final investment decision announced today to proceed with the development of its Prelude Floating LNG Project will deliver billions in economic benefits and put Australia on the map as a world leader in this cutting-edge technology.

Analysis indicates Prelude will add over $45 billion to Australia’s GDP, create around 1,000 jobs, contribute $12 billion in tax revenues, spend $12 billion on Australian goods and services and improve Australia’s balance of trade by at least $18 billion over the 25-year life of the project.

The facility will be the largest floating structure ever built and will be used to develop both the Prelude and Concerto fields in the Browse Basin about 475km north-northeast of Broome.

Welcoming the announcement in Perth, the Minister for Resources and Energy, Martin Ferguson AM MP, congratulated Shell on its decision which reflects continued confidence in Australia as an investment destination for major projects.

“Today's announcement by Shell comes after many years of hard work to get this project off the ground,” Minister Ferguson said.

“It opens the doors to countless new opportunities both here in Australia and around the world to use new technology that makes it more economical to develop remote deposits.

“Floating LNG technology can unlock petroleum resources that are either too far from existing infrastructure or too small to develop via a conventional LNG project and has the added benefit of a smaller environmental footprint.

“This project will also be Shell's first upstream development in Australia as operator and I welcome their intention to invest even further here in coming years.

“It is also important not to lose sight of the longer term benefits Prelude will deliver. In addition to the jobs, increased revenue and opportunities for local companies it will create, Shell will also use Prelude to offer training, education and research opportunities in Australia.

“Australia is already the world’s fourth-largest LNG exporter. This year we forecast our LNG exports to be worth more than $8 billion. Projects like Prelude put us securely on the road to becoming the world’s second-largest exporter of LNG in the near future.”

The Commonwealth Government has granted environmental approvals for Prelude. The project will be subject to strict environmental conditions to ensure any environmental impacts are managed and minimised.

Media Contact: Fiona Scott - 0457 542 330