The company along with Japan-based oil company, INternational PEtroleum EXploration (Inpex), and Korea Gas (KOGAS), and contractor Technip-Samsung Consortium has initiated the construction work by cutting steel required to build the facility.

Shell is building the Prelude FLNG facility to meet the ever growing energy demand across the world.

The company will deploy the facility in Australian waters to produce gas from the sea, turn it in to liquefied natural gas and transfer it to ships from where LNG will be transported to the customers.

Shell Projects & Technology director Matthias Bichsel said making FLNG is not a simple achievement.

"We are cutting 7.6 tonnes of steel for the Prelude floating liquefied natural gas facility today, but in total, more than 260,000 tonnes of steel will be fabricated and assembled for the facility," Bichsel added.

"Today’s ceremony marks a major milestone in this project, when the innovative thinking and new technology and engineering solutions which will make FLNG possible begin to be realised."

All the associated project partners and contractors are contributing their experience, expertise, skills, knowledge, and equipments to complete the project while managing the safety, quality and cost.