Shell facility gets go-ahead

The world’s first floating liquefied natural gas project is being constructed and will be installed off the Kimberley coast after Royal Dutch Shell made its final investment decision on the project last week.

It is part of ongoing projects in the north, where more than $100 billion of LNG ventures are being considered for development.

Prelude is the first of three project approvals expected this year, with Chevron poised to sign-off on the $25 billion Wheatstone project near Onslow, while Inpex is close to sanctioning its $25 billion Ichthys development.

Together, LNG projects are anticipated to generate thousands of new permanent jobs and cement WA as one of the world’s biggest gas-producing regions.

A Shell spokesperson said the Prelude project would have few impacts on Broome, which will be the closest population to the project, and included in the realm of its employment.

The company plans to employ mainly from Darwin and Perth, but said it may employ some residents of Broome.

However, it said there may be more benefit for the Kimberley in indirect business and employment.

From the second half of 2012, the company would have some activity at Broome Port, and during operation it will use Broome as an air base to fly workers out to the facility.

It will also use Broome Port to service the tugs that will support the facility.

It is working with a consortium including Curtin University and the Challenger Institute to develop a unique floating LNG training program, to cost Shell some $3 million a year.

Shell said it would spend $12 billion to develop the offshore gas field, producing gas and liquefying it on-board.

A 488m-long, 600,000tonne facility will now be built in a South Korean shipyard before being positioned on the Prelude gas field 200km off shore.

First production of LNG is expected by 2017.