Shell sells more of Prelude floating LNG project

Following Royal Dutch Shell PLC’s recent deal to sell 17.5% of its Prelude floating LNG project in Browse basin permit WA-44-L offshore Western Australia to Japan’s Inpex Oil & Gas (OGJ Online, Mar. 19, 2012), the supermajor has agreed to sell a further 15% to Asian buyers.

Shell will sell 10% of Prelude to South Korea’s Kogas and 5% to Taiwan’s CPC Corp.

Kogas recently announced a decision to establish an Australian subsidiary to facilitate its plans to invest in Prelude and the company already has approval from the South Korean Ministry of Knowledge Economy to buy 3.64 million tonnes/year of LNG from Shell’s global LNG supply inventory.

In addition, this month Shell signed a heads of agreement to supply CPC with 2 million tpy of LNG for 20 years beginning in 2016 from its global portfolio, which includes Prelude.