Shell plans to process gas at sea

Shell is planning to build the world's first floating liquefied natural gas plant.

The Anglo-Dutch company says the plant - which will be the length of four football pitches - will be constructed in the Timor Sea, north of Australia.

Shell is being forced into the move because a planned pipeline from East Timor to the eastern Australian city of Darwin has been cancelled.

The plant will makes gas into a liquid, so that it can be transported safely by tanker. It will then be returned to gas form at its destination.

Shell says the floating plant will cut development costs in the Timor project by up to 40%, as well as reducing the amount of greenhouse gas emissions.

It may also be used at other remote gas fields run by Shell.

US oil company Philips Petroleum last week cancelled plans to build a pipeline from the gas and oil-rich Timor Sea to Australia because of a dispute with the East Timor government over the tax and financial conditions of the project.