• Home
  • News
  • Prelude FLNG cancels cargo deliveries amid union strike - Natural Gas Intelligence
  • 2022 July 1 11:18

    Prelude FLNG cancels cargo deliveries amid union strike - Natural Gas Intelligence

    The Prelude floating liquefied natural gas (LNG) export facility offshore Western Australia has canceled cargo deliveries through mid-July as labor unions representing workers on the vessel initiate work stoppages, according to Natural Gas Intelligence.

    Shell plc told multiple news outlets this week that it has notified customers of the cancellations, citing the impacts of a strike that started on June 10. Meanwhile, the Offshore Alliance, a partnership between the Australian Workers’ Union and the Maritime Union of Australia, said Shell announced its intention “to shut down production during the midst of bargaining” last week.

    The Prelude facility produces 3.6 million metric tons/year (mmty) of LNG. The lack of cargoes from the vessel in the coming weeks stretches a global market already short on supplies. An explosion earlier this month that knocked out the 15 mmty Freeport LNG terminal in Texas until later this year has also taken cargoes off the market.

    Flows on Russia’s Nord Stream 1, one of the largest systems serving Europe, have also been reduced due to what Gazprom PJSC has said are technical issues. The system is scheduled to be taken offline for maintenance July 11-20, stoking concerns that Europe might not get the supply back beyond the end date as political tensions mount.

    Shell and the unions are sparring over a new collective bargaining agreement. The company claims the strike is limiting its ability to operate Prelude and load cargoes. The vessel came back online in April after it was forced to shut down following a fire last December.

    The facility mostly supplies cargoes to Northeast Asia, mainly South Korea, Japan and Taiwan, according to Rystad Energy.

    Asian LNG prices are still trading below those in Europe given a scramble on the continent to refill storage inventories ahead of winter and consistent concerns about the reliability of Russian supplies. Prices in Asia are lower despite a heat wave that has impacted parts of Northeast Asia, including some of the hottest weather in a century in Tokyo.

    “Given that most Northeast Asian buyers still have sufficiently healthy inventories, while there are increasing concerns about warm weather, it is not enough to force their hand in the market,” said Rystad analyst Lu Ming Pang. However, he added that the Prelude outage could cause a “noticeable disruption” if it does stretch into July.




2022 August 15

18:26 Fujian MSA and Fishing Authorities announce the 1st batch of hgh risk warning areas of collision between merchant ships and fishing boats
18:06 Port digitisation project at APM Terminals Liberia set to improve efficiency and ease of doing business
17:55 Vladivostok Sea Fishing Port to convert one of its berth into container storage yard
17:26 King Abdulaziz Port in Dammam breaks container throughput record in June
17:06 Keppel O&M wins US$2.9bn newbuild FPSO P-80 contract from Petrobras
16:41 Zero-carbon fuel readiness on the rise but challenges remain - LR
16:20 Container throughput of Hong Kong port (China) in 7M’2022 fell by 4.3% to 8.65 million TEU
16:01 De-Kastri port to handle four ships loaded with oversize cargo for Amur Gas Chemical Complex in 2022
15:23 TECO2030 receives BWTS order
15:02 Greenpeace activists target Oldendorff vessel as part of ‘No new gas’ protest
14:23 Fishing vessel sinks off San Juan Island, oil sinks - U.S. Coast Guard
14:03 ZeroLab by Klaveness and South32 complete shipping emissions analysis
13:35 Nordic Engineering and Information & Analytical Center of State Commission for Arctic Development sign cooperation agreement
13:13 The Lower Parana Coast Guards revises speed regulations on Parana river
12:41 Alfa Laval FCM Methanol chosen as the fuel supply system for six methanol-fuelled container vessels
12:12 AMSA provides aerial support for catamaran
11:42 ONE adds Mombasa port call to MIM service
11:36 FESCO’s foreign trade cargo turnover via Far East ports rose by 19% to 131,000 TEU in H1’22
11:19 DEME’s next-generation vessel ‘Orion’ successfully installs the Fécamp offshore substation jacket and topside
10:49 Port of Tanjung Pelepas becomes first container terminal in Malaysia to surpass 1 mln TEUs a month
10:24 Waleid Gamal Eldien appointed as Chairman for Suez Canal Economic Zone
09:45 Far East Shipping Company (FESCO) reports 6-fold surge of its RAS net profit
09:17 Crude oil futures decrease with U.S. attempts to cap Russian oil prices
08:44 MABUX: Global bunker prices may change irregularly on Aug 15

2022 August 14

14:51 DEME’S next-generation vessel "Orion" successfully installs the Fécamp offshore sustation jacket and topside
13:18 USCG awards contract to expand East Tongue Point facilities
12:46 Diana Shipping announces the acquisition of nine Ultramax dry bulk vessels from Sea Trade Holdings Inc.
09:47 Shell completes acquisition of renewables platform Sprng Energy group

2022 August 13

14:17 Golden Energy Offshore Services secures long-term contract in Caribbean
12:01 PortsToronto renews commitment to green electricity by renewing agreement with Bullfrog Power for all operations including Billy Bishop Toronto City Airport
10:26 Hapag-Lloyd updates the Rhine River low water surcharge

2022 August 12

18:27 OKEE Maritime to enhance environmental performance with StormGeo's CII Solution
18:03 IAA PortNews’ summary of past week news
17:51 The Government of Canada announces funding for new technologies to reduce underwater noise from marine vessels
17:20 Avenir LNG signs MoU for the development and construction of an LNG/BioLNG Terminal in the Port of Oxelösund, Sweden
17:02 NE China ports handle over 3,100 China-Europe freight train trips - The State Council the People's Republic of China
16:31 Russian Railways boosts loading of cargo bound for Azov-Black Sea Basin by 2.5% in 7M’22
16:24 Global container fleet to grow more than demand - Hapag-Lloyd CEO - Reuters
15:30 ZIM invested $5.5 million in provider of asset and fleet visibility solutions
15:03 Equinor’s H2H Saltend selected to proceed as one of the first large-scale hydrogen projects in the UK
14:58 Three new barges delivered cargo for construction of Amur Gas Chemical Complex
14:13 Grimsby River Terminal welcomes the first sustainable car carrier
14:03 CMA CGM service starts to call Yilport Gemlik
13:42 Maersk Drilling awarded two-month extension with TotalEnergies offshore Denmark
13:14 De Vlaamse Waterweg and Port of Antwerp-Bruges maintain the water level in the docks and the Albert Canal with a temporary pump installation
12:00 First Rijeka–Czech Republic direct cargo rail service established
11:55 Kazakhstan Transport Week will be held in Almaty from September 20-22, 2022
11:32 MacGregor has received a significant order to supply all-electric RoRo equipment to four PCTC vessels
11:02 Diana Shipping announces the acquisition of nine Ultramax dry bulk vessels from Sea Trade
10:42 First hydrogen bunkering license issued in the Netherlands
10:28 Throughput of Russian seaports in 7M’2022 declined by 0.2% YoY
10:20 Teekay сompletes the first ship-to-ship operations at Port Sudeste Brazil
10:09 Höegh Autoliners posts Q2 2022 results
09:31 ZeroNorth signs deal with X-Press Feeders to propel carrier’s decarbonisation strategy
09:16 Crude oil futures decrease after growing for two days
08:51 MABUX: Global bunker indices to keep rising on August 12
08:33 Pakistan Navy saves 9 Indian crew members after ship drowns - Geo News

2022 August 11

18:30 Valenciaport strengthens relations with the Chinese region of Fujian
18:05 Yang Ming publishes financial report for H1 2022
17:57 Yara Latvija opens a mineral fertilizer packaging and storage warehouse at “Riga Nordic Terminal”