Shell to load first condensate cargo from Prelude FLNG project end Jan

Singapore — Shell will load the first condensate cargo from Australia’s Prelude FLNG project at end January, according to shipping reports and sources Thursday.

The condensate will be loaded in a 80,000 mt clip over January 31 to February 2, shipping reports showed.

A vessel has not been fixed for the cargo, and shipbrokers said Shell began looking for an Aframax tanker to load the cargo Thursday.

Shell did not immediately respond to an email query seeking comment.

The destination of the cargo is unclear, though trade sources have said that the oil major will likely use the cargo within its own network of splitters and refineries.

Shell has not been actively marketing condensate cargoes from the project in the spot market, and an assay has not been made publicly available, trade sources added.

The first condensate cargo comes shortly after Shell announced on December 26 that it had started production of natural gas and condensate from the project, paving the way for the first cargoes of LNG, LPG and condensates to be shipped in coming months.

Prelude FLNG was one of the most anticipated LNG projects in recent years due to the deployment of the world’s largest floating facility, with a production capacity of 3.6 million mt/year of LNG, 1.3 million mt/year of condensate and 0.4 million mt/year of LPG.

The facility, located 475 kilometers north-northeast of Broome in Western Australia, is operated by Shell with a 67.5% stake, with Japanese explorer INPEX holding a 17.5% stake, South Korea’s KOGAS 10% and Taiwan’s CPC Corp 5%.

–Andrew Toh, [email protected]

–Wanda Wang, [email protected]

–Eric Yep, [email protected]

–Edited by Wendy Wells, [email protected]

SOURCE

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