Callum Turcan: Oct. 2, 2017 5:45 AM ET
Summary
- Shell’s floating liquefied natural gas project, the Prelude FLNG venture, will come online within a year.
- Cash flow generation expected to begin in 2018, two years later than initially planned.
- Going over the details of Royal Dutch Shell’s Prelude FLNG development.
Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) is getting closer and closer to finally completing its Prelude FLNG project off the northwestern coast of Australia. FLNG stands for floating liquefied natural gas, a marine vessel that can commercialize gas finds that are too small to justify building a new onshore LNG facility to develop. Let’s dig in.
FLNG overview
The purpose of turning gaseous methane into liquid form is that LNG takes up 1/600th of the space as a liquid, making exports economically viable. By cooling the natural gas down to negative 260oF, Shell can economically supply gas to consumers all over the world. The real genius of FLNG vessels is the ability to fit a processing plant on a ship in a fraction of the space that conventional processing facilities take up, along with Shell’s Dual Mixed Refrigerant unit that can cool the gas down. read more
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