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Shell has restarted production at its floating Prelude facility offshore Western Australia, ending a standoff with Australian unions, which lasted more than two months. The operator said Monday that LNG cargoes have resumed from the Prelude facility. This follows the cancellation of protected industrial action after an in-principle enterprise agreement was reached with the Australian Workers’ Union (AWU) and Electrical Trades Union on Aug. 23. The Offshore Alliance, a partnership between AWU and Maritime Union of Australia, said its members have voted 94% in favor of a new Prelude enterprise agreement, which “close out the bargaining process after 76 days of industrial struggle.” The new agreement is expected to come into effect in early October. The strike, which started on Jun.10 and extended several times, has led to a shutdown of the 3.6 million ton/yr Prelude due to work bans. Prelude's restart would help ease global LNG supply tightness as winter approaches which has boosted buyers' stockpiling in Asia and Europe.

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