Shell Prelude LNG Loading Disrupted for at Least 2 Weeks, Worsening Global Supply

Shell Plc said on June 29 LNG shipments from its Prelude floating facility off northwest Australia would be disrupted for at least two weeks due to work bans by unions fighting for better pay.

Loading disruption at the 3.6-million-tonnes-per-year facility adds to tightness in a global LNG market just as Europe scrambles to secure cargoes to make up for lost Russian gas supply. One of the largest U.S. LNG plants, Freeport LNG is also undergoing an extended outage.

"We have issued a notice to customers that cargoes will be impacted until at least mid-July due to the industrial action," a Shell spokesperson said in an emailed comment.