Shell and unions agree to end strike at Prelude FLNG off Australia

Shell (SHEL.L) and unions representing workers at its Prelude floating liquefied natural gas facility (FLNG) have reached a collective agreement to end a long-running strike and resume production at the site off north-west Australia, they said on Wednesday.

Shell shut down the 3.6 million tonne annual Prelude plant in July, telling customers it would be unable to operate for the duration of the sheltered industrial action or strikes sanctioned by Australia’s Fair Work Commission over a wage dispute to deliver LNG.

“Shell is pleased to confirm that it has entered into a corporate agreement in principle with the Australian Workers’ Union and the Electrical Trades Union in relation to the Prelude FLNG facility,” the company said in an emailed statement.

The process to formally lift the protective industrial action bans on work is expected to be completed shortly, which will allow the facility to begin the process of preparing for a hydrocarbon restart,” it said.

Shell did not provide a timeframe for resuming production or resuming LNG deliveries at Prelude. The company would have to go through a staged founding process, said a spokeswoman.

The Offshore Alliance, which brings together the Australian Workers’ Union and the Maritime Union of Australia, said workers would vote on the company agreement (EBA) later this week.

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