EAGC: will we see another Prelude FLNG?

Hague-based energy giant Shell, that is currently constructing the world’s largest floating LNG producer, Prelude FLNG, may consider building another unit of that size – depending on the market, Marjan van Loon, Shell’s top executive in the Netherlands said on Tuesday.

Van Loon said this at the European Autumn Gas Conference currently being held in the Hague. She was answering a question from the audience whether there will be a Prelude sister vessel after delivering a keynote speech on regional-to-global gas perspectives.

Shell’s Prelude FLNG facility, currently being built at Samsung Heavy Industries’ Geoje shipyard in South Korea, is the largest of its kind with 488m in length and 74m in width. Once completed, the FLNG facility is expected to stay moored at the Prelude gas field off Australia for 25 years.

Shell is putting a lot of hopes in its gas and LNG business. The Anglo-Dutch major became the world’s top LNG company after completing the multi-billion deal with UK-based BG Group earlier this year.

“We at Shell continue to believe in gas as a necessary fuel now and in the foreseeable future. We were already producing more gas than oil before the merger with BG Group last February and now the percentage of gas has increased further,” Van Loon said.

“The combination with BG is, in fact, the proof of our strong faith in commercial and environmental benefits of natural gas in the future role of the global energy mix.”

However, more policy changes in favor of natural gas are needed. The fuel has an “important role” in lowering CO2 emissions, van Loon argued.

“To enable this role, robust carbon policies are required to make the switch to a lower CO2 energy system.”

China has 130 times more LNG trucks than Europe

There are many solutions for lowering carbon emissions, and LNG as fuel for trucks and marine vessels, is certainly one of them, according to van Loon.

Shell is currently working on a number of pilot projects for using the chilled fuel in transport, she said, adding that the company currently operates five LNG filling stations for trucks in the Netherlands.

“Hundreds of trucks are already LNG-powered. We expect further growth in Europe and we actively support the development of green corridors where international trucks can be filled with LNG.”

“These figures might be impressive, but let us not forget that there are already around 200,000 heavy-duty LNG trucks in China. That is 130 times the number of LNG trucks in Europe,” van Loon said.

Shell expanding LNG-fueled fleet

The maritime industry also provides new opportunities, and in the Netherlands “we are actively developing them – both on the rivers and at sea,” van Loon explained.

“Shell is expanding its fleet of LNG-fueled barges on the European rivers. And in the Netherlands, another 15 new LNG-fuelled barges will start sailing soon.”

Van Loon also touched upon the contract Shell signed in October with Carnival for fueling two of their planned LNG-powered cruise ships.

Under the deal, one Carnival cruise ship will refuel from Shell’s LNG bunker vessel that will load at the Gas Access to Europe (GATE) terminal in Rotterdam, while the second ship is expected to refuel at one of the ports in Gibraltar.

“That may look insignificant, but don’t forget that one cruise liner with 7,000 to 8,000 people on board typically uses the same amount of fuel as a small city with a population of 30,000 people. These ships are essentially floating power stations,”  van Loon said.

 

LNG World News Staff