Arms of a behemoth: Prelude FLNG

Check out this new video from Shell (I think) looking at some of the dimensions of Prelude FLNG:

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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Comments

  1. Cheaper than paying Australians onshore? Was that the objective here? Where is our governm…Ohhh forget it.

    • Colin Barnett is still hankering (to be honest so am I) but this project faced escalating onshore construction costs and a relentless campaign against it orchestrated by unions and the job destroying Greens.

      As to Prelude – absolutely breathtaking.

      Jobs not Greens.

      • 3d, we all know it was killed on the basis of cost, not environmental constraints. Time to grow up dude.

      • Did I not mention escalating costs? Are you aware that ‘off the record’ environmental activism was a component of the final decision process? Had the original agreement with KLC been honoured, JPP not become the target of activism garnering global attention to the project leading to delayed development timeframes and legal disputation the project despite 20% more expensive would have gone ahead.

        Prelude is on track to completion. JPP would still be no-go with the only activity being the Sea Shepherd anchored off coast.

      • I’m just amazed how much power 3d1k attributes to the Greens and unions have given how few people he claims support them.

        Responsibility not finger-pointing.

      • AB you overlook the fact that the union green government of Rudd/Gillard was in power at the time. Any wonder Ferguson abandoned ship. He had a Prelude to the future.

      • 3d1k… You seem befuddled as Rudd/Gillard were corporatist, it could also be reasonably argued that Unions have become corporations too.

        Skippy…. because markets dictate behavior… remember?

  2. I love this sort of massive scale technology stuff, that’ in the end analysis is only really aimed at defeating silly labor restrictions. FLNG is just the beginning, it a trend that Australia needs to get ahead of if it wants to maintain it’s standard of living. cause we haven’t seen the last of labor displacing technology, not by a long shot, look real close at what’s happening inside Foxconn’s big Shenzhen factory if you want a glimpse of the future.

    • Abso-bloody-lutely CB, our placement in the world (between Asia and the West) as well as our mineral and energy endowment puts us in a prime position to leverage technical and managerial skills.

      Unfortunately everyone would rather talk about flipping properties at the weekend BBQ instead of multi-phasic flow metering, markov chains or neural networks.

  3. Very cool.

    All assembled in Korea with european technology.

    Virtually no Australian involvement though…. 🙁

    • There is more Australian input than you think.

      http://m.theaustralian.com.au/business/the-deal-magazine/lng-is-the-clean-energy-game-changer/story-e6frgabx-1226759989114

      And for Jackson above

      “…The idea of a floating LNG platform was originally envisaged as a concept for so-called stranded gas fields located offshore and far from any infrastructure. But the intensity of environmental and political debates and the soaring cost of About 2000km of pipework and 220,000km of cabling are being installed on Shell’s 500m-long Prelude floating LNG barge at Geoje Island in South Korea; Cris Moreno, commissioning and startup superintendent for Prelude, left getting materials to a remote location have now made floating LNG an attractive alternative, even for fields that are located close to the coast and would not require long pipelines linking the gas to the shore.

      There are only a handful of shipyards in the world capable of accommodating a vessel of Prelude’s size and, even here, special gantries and floating cranes have had to be built for the construction process. Workers at Geoje recently fitted together the two 240m sections of Prelude’s hull, bringing almost two decades of work by Shell another big leap closer to completion.

      Moreno, a chemical engineering graduate from Curtin University, had worked after graduation for energy company Santos and Woodside, Australia’s largest oil and gas producer. He joined Shell, the Anglo-Dutch energy multinational, in 2008 when environmental tensions were emerging over Woodside’s push to establish an onshore LNG plant in the Kimberley at James Price Point. Although floating LNG was still just a concept at that stage, Moreno was desperate to get involved in what he saw as a revolutionary new production method.

      “I personally saw that, particularly in Australia, there were becoming increased challenges with using onshore options,” Moreno says. “A lot of them were not technical; a lot of them were to do with political aspects, with traditional landowners and with cost inflation. So a lot of these things were pushing traditional options into a very difficult area. I made a bit of a deal on the side with my [soon-to-be] boss and said: ‘If I perform, I want to be put on Prelude’.”

      • JacksonMEMBER

        3d, seriously, lay out your costs and tell me how much is due to the environmental “overhead”. I’m no fan of that overhead, believe me, my gripe is your insistence that the costs of it are a major cost component of the project. It is total BS. There is no way the compliance costs of the 40 or so provisions imposed by the EPA would be in the billion dollar range over the life of the project, not even close.

        As for FLNG as a concept, I’m well aware of it, and am hardly surprised by the developments. Will be interesting to see the MUA see if they can get all workers on the ship into the union.

        Hope you enjoyed the dinner last night.

      • Yes, I did, thank you.

        I agree re costs and have said so. The environmental overhead per the EPA was acceptable; the enviro-political overhead was not.

        The MUA will not be allowed anywhere near it.