REFILE-UPDATE 1-Shell mulls floating LNG unit off Australia

Mon Apr 7, 2008 3:09am EDT
 
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PERTH, April 7 (Reuters) - Anglo-Dutch oil major Royal Dutch Shell (RDSa.L)(RDSb.L) is considering using floating liquefied natural gas (LNG) production technology for a gas field off Western Australia, a company executive said on Monday.

Shell said last July it had made a sizeable gas discovery at the Prelude-1 well in its 100 percent-owned Browse basin permit WA-371-P offshore Western Australia, but it did not reveal further details of the find.

"Floating LNG is a leading candidate for the Prelude field but it's too early to say what we will eventually be using," Linda Cook, Executive Director Gas & Power at Shell, told reporters at an industry conference.

The Prelude well is an extension of the giant Ichthys gas field in the neighbouring WA-285-P permit block owned by Japan's Inpex (1605.T) and Total SA (TOTF.PA).

Apart from Australia, Cook said Shell was also eyeing Southeast Asia and western Africa for its floating LNG plans.

Shell is the second company after Norway's FLEX LNG embark on developing floating LNG production units. Cook said the floating LNG units would accelerate the process of bringing LNG projects online as well as circumvent labour shortage issues.

Separately, Cook said she expects LNG prices to remain strong, thanks to growing demand as the world seeks cleaner burning fuel.

"It's not just China coming into the market as an LNG buyer. There is also Brazil, India and all these other countries which had not considered LNG before, but are now wanting to secure some supplies," she said.

(Reporting by Fayen Wong)

 

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