Australia: APPEA Welcomes Prelude Approval

The peak body representing Australia’s oil and gas industry has welcomed Shell Development Australia’s decision to proceed with its Prelude project, which will be the first floating liquefied natural gas (FLNG) facility in the world.

Australian Petroleum Production & Exploration Association (APPEA) Chief Executive, Belinda Robinson, said: “FLNG is a technological innovation of enormous significance. It will enable the development of gas deposits previously considered either too small or too far offshore to be developed commercially.

“FLNG brings many small to mid-sized deepwater fields into play.

“The industry’s ability to develop these previously-stranded resources will deliver substantial economic benefits to this country.

“This development is also likely to prompt more exploration in under-explored but potentially petroleum-rich waters, meaning it could lead to the discovery of more significant oil and gas fields.”

A 2008 CSIRO report estimated Australian stranded gas reserves to be around 140 trillion cubic feet. That is enough to power a city of 1 million people for 2800 years.

Ms Robinson said the development of FLNG in Australia will reinforce Australia’s growing global importance as a gas exporter.

“Australia is already a world-class LNG supplier and we have the most ambitious and most innovative LNG expansion plans of any country in the world,” she said.

“We recently became the first country in the world to develop a coal seam gas-based LNG sector and we are now set to pioneer floating LNG technology.”

[mappress]

Source: APPEA, May 20, 2011;