Fire at Prelude LNG Construction Site

Shell said a small fire occurred at the construction site in South Korea for its huge floating Prelude LNG project, with work resuming immediately and an investigation underway.

The incident would not have an impact on the delivery schedule, according to a source in South Korea.

Shell has declined to reveal the timetable or the budget for Prelude, based on a giant processing vessel being built in Samsung Heavy Industries' Geoje shipyard that will be towed to a gas field off the west Australia coast.

"Shell can confirm there was an incident on Prelude construction site last week that led to a small fire," according to a statement from Shell's Australian arm.

"Construction activity resumed immediately and the cause of the incident is being investigated," it said.

A source in South Korea familiar with the incident said there would be no impact on the project's delivery date.

It is the second recent incident involving LNG production facilities owned by major oil companies.

Chevron on July 1 suspended production at Australia's Gorgon LNG export facility after a leak to perform minor repair work on a low pressure flare system.