Shell (LON:SHEL) said liquefied natural gas (LNG) cargoes from its Prelude floating LNG (FLNG) unit will be disrupted due to a protracted industrial dispute with workers over wages on the vessel offshore Australia.
Shell has confirmed that while Prelude, off north-west Australia, would remain in production, shipments of LNG would be disrupted out to at least mid-July and it has notified customers.
It marks yet another reputational blow to the project with a troubled history that has been tarnished by cost blow-outs, construction delays and safety issues that have dented production.
The loading disruption at the 3.6 million tonnes per year LNG facility comes just three months after Prelude restarted shipping LNG following a four-month shutdown due to a major power failure.
Workers on Prelude started 12 days of industrial action on 10 June over a pay dispute. They are due to vote on a new offer from Shell on July 7.
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