WA inquiry focuses on FLNG safety

OREANDA-NEWS. Safety issues on floating LNG (FLNG) projects have been highlighted as a concern by a Western Australia (WA) inquiry, especially during the region's frequent tropical cyclones.

The inquiry by the Economics and Industry Standing Committee, comprising five WA MPs, highlighted concerns by FLNG operators to keep personnel on floating LNG vessels, even in severe tropical cyclones.

Its latest report raised concerns about the cramped working environment compared with an LNG onshore plant, along with the adequacy of emergency evacuation infrastructure and procedures. Workers would stay in cyclone-proof accommodation on FLNG vessels during cyclones or large storms. Workers on offshore oil rigs offshore WA in contrast are evacuated to safety onshore ahead of severe tropical cyclones.

"The committee took these concerns very seriously. The oil and gas industry is inherently dangerous and accidents do happen. Moreover, while major incidents are relatively rare, when they do happen they are often catastrophic," the report said.

A previous inquiry by the committee last year concluded that FLNG ventures will result in reduced royalties and fewer jobs for locals opposed to land-based projects. The WA government prefers onshore LNG developments because they have a greater economic impact, as well as the potential to supply more gas to the domestic market.

Shell is the operator of the 3.6mn t/yr Prelude FLNG project in the Browse basin, which is scheduled to start up next year. Australian independent Woodside Petroleum plans a financial investment decision next year on the Browse FLNG project, which includes proposals for three FLNG vessels with a total capacity of 11.7mn t/yr.