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World's biggest floating gas facility on its way... but no royalties for WA

The world's biggest floating gas facility - nearly twice the size of the Titanic - is expected to arrive off WA shores later this month. 

Prelude is a 488-metre long, 600,000 tonne vessel owned by Shell which can extract, process and store gas at sea. 

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Biggest floating gas hub in the world heads to WA

The offshore project will create 350 new jobs... but there will be no royalties for the state.

Once it arrives in around four weeks time, it will be located 475 kilometres north of Broome, in the Browse basin. 

The multi-billion dollar offshore project is expected to employ around 350 people, mainly from Western Australia. 

However, due to the vessel being located in Commonwealth waters, Western Australia will not receive any state royalties associated with the project. 

Mining analyst Tim Treadgold told 9 News Perth the South Korean-built vessel would be the biggest experiment in floating LNG in the world. 

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Although, with oil prices dropping to around $US45 a barrel, questions have been raised as to when the project will become profitable.  

"It's an investment in a huge piece of capital equipment that doesn't require a lot of people to run it, it will generate jobs, it will pay taxes so it's good for Australia," Mr Treadgold said. 

"Unless the price of oil goes up, this project is likely to be marginal at best."

The vessel will be fully operational in 2018.