Shell and workers’ unions have reached agreement in the Prelude gas facility industrial dispute. 

Strikes, go-slows and shutdowns on Shell’s floating LNG facility Prelude appear set to end after unions and the company reached an in-principle enterprise agreement for workers. 

Shell had to halt shipments leaving the facility, located 400 kilometres off the Kimberley coast, and shut down production amid soaring gas prices. 

The multi-billion dollar facility came online in 2019, and has been plagued by technical problems, safety concerns and cost blow outs. 

The industrial dispute has been centred on pay rises for workers onboard, job security and superannuation increases.

Shell now says it is “pleased to confirm an in-principle enterprise agreement has been reached with the Australian Workers' Union and Electrical Trades Union”. 

“The process to formally lift the work bans in place under the Protected Industrial Actions is expected to be completed shortly, which will enable the facility to commence the process to prepare for a hydrocarbon restart,” a spokesperson said. 

“Our strong preference was for this to be resolved through an agreement and confident this was the best outcome for our workforce.

“We are now focused on moving forward with our workforce, returning to safe, stable production and delivering affordable, reliable energy to our customers to meet the critical demands on energy security.”

The Offshore Alliance - a partnership between the Australian Workers' Union and the Maritime Union of Australia - welcomed the in-principle enterprise agreement too. 

“Members were able to secure a range of improvements to their pay and rostering arrangements along with, critically, new job security and career progression provisions,” an alliance spokesperson said. 

The new agreement still needs to be voted on by workers.