Shell plc is shuttering the 3.6 million metric tons/year Prelude floating liquefied natural gas (FLNG) export facility offshore Western Australia, as union workers overwhelmingly rejected the London-based major’s latest offer to improve pay and working conditions. 

The Offshore Alliance union told Shell that workers planned to ban mooring tankers alongside the FLNG facility, preventing the producer from unloading LNG and liquefied petroleum gas (LPG) from the facility. The dispute began in early June with Offshore Alliance, a partnership between the Australian Workers Union and the Maritime Union of Australia. A three-day vote by the Alliance began earlier this month, but nearly 95% rejected Shell’s offer.

Prelude customers were informed by Shell on Monday (July 11) that no...