“First LNG cargo is still several weeks assuming all proceeds as planned, but the timing of first cargo and pace of ramp-up is still subject to technical risk,” said Saul Kavonic, energy analyst at Credit Suisse in Sydney.”Given Prelude’s novelty, geographic conditions and challenges, it may be subject to greater risk to timeline from wellhead production to first cargo than an average LNG project,” he said. “We expect Shell to seek to get it done right, rather than rush things.”
Shell owns 67.5 per cent of the project, while Japan’s Inpex Corp, Taiwan’s CPC Corp and Korea Gas Corp hold the rest of the shares.
Australia overtook Qatar as the world’s largest exporter of LNG for the first time in November, after the start-up of a number of export projects over the past three years, most recently the Ichthys facility.
The start-up of Prelude, following the ramp-up in production at Ichthys and Russia’s Yamal LNG is expected to put pressure on the Asian market next year, said Kittithat Promthaveepong, a senior analyst at FGE.
Extracted from AFR