Shell to build $5 billion floating LNG plant

Anglo-Dutch oil group Shell said on Friday that it was in the process of preparing a blueprint for a liquefied natural gas (LNG) plant that would float off the coast of Australia. The LNG plant, the biggest vessel to be built, would be the first of its kind in the world. 

Analysts believe the success of such an undertaking would have a significant impact on the industry as it would become possible for the first time to unlock 'stranded' gas reserved previously thought to be too expensive to develop considering their small size and distance from the sea. 

The gigantic floating structure would cost $5 billion to build and would measure 480 metres in length, and 75 metres in width. The structure would weigh about 600,000 metric tonnes. 

The company has, however, given no time frame for the vessel's completion, which will draw LNG from its Prelude and Concerto gas assets in the Browse Basin off the northwest Western Australia coast. 

It would be "significantly be the world's largest vessel when its construction is completed," according to Shell's executive director upstream international Malcolm Brinded.                                                       

The technology is as yet untested but the plant once it is operational would deliver about 3.5 million tonnes of LNG per year as also liquefied petroleum gas over its 20-year life span.