Shell plc has suspended production at a floating facility for liquefied natural gas Off the west coast of Australia after a fire broke out, slashing fuel supplies to Asia as winter sets in and consumption soars.
“Shell” said in a statement, “The small fire at the Prelude LNG facility was detected on Wednesday afternoon and was quickly contained using a manual extinguisher. Production has been temporarily suspended and the cause of the accident is being investigated,” according to “Bloomberg” and viewed by “Al-Arabiya.” net”.
The outage comes after Prelude resumed downloads this week after nearly two months of maintenance. The outage is another setback for the world’s largest floating liquefied natural gas plant, which has suffered persistent technical problems since it started in 2019.
The turmoil also threatens to exacerbate global energy shortages as winter demand for LNG from Shell’s Asian customers peaks.
The London-based oil and gas major did not say when production would start again at the facility, which has the capacity to produce 3.6 million tonnes of LNG per year.
The downtime of the Prelude facility could force Shell to buy more LNG supplies from the spot market in order to meet customer deliveries. The company has already purchased several spot cargoes of LNG for delivery in January to China over the past few months.