The wells recently opened at the world's largest floating LNG production facility (FLNG) and the initial phase of production has commenced, said Japan's Inpex on Wednesday.
The company said that the project involves developing the Prelude and Concerto gas fields located 475 kilometers north-northeast of Broome, off the coast of Western Australia, and separating and liquefying the produced gas at the FLNG facility to produce LNG, LPG and condensate.
These products will then be directly loaded from the FLNG facility onto tankers and shipped in sequence.
The Prelude -- also the world's largest vessel -- is expected to have an annual LNG production capacity of 3.6 million tonnes, 1.3 million tonnes a year of condensate and 400,000 tonnes a year of LPG.
Shell owns 67.5 percent of the project, while Japan’s Inpex Corp, Taiwan’s CPC Corp and Korea Gas Corp hold the rest of the shares.
The project also highlights an accelerating shift to LNG facilities across the board as LNG provides mobility and diversity for energy importing countries as a cleaner form of energy instead of coal and oil.
By Murat Temizer