To get an insight into the potential of small scale LNG and FLNG projects, Jorge Ferreiro, LNG and FSRU specialist at ANCAP Natural Gas – Uruguay’s state-owned company - talks about big opportunities in three small-mid scale activities in Alaska, Cameroon and Colombia.
As news of first cargo from BG/CNOOC's Queensland Curtis LNG project in Australia made the headlines on Monday 29 December, and Shell’s Prelude FLNG is well underway, it is worth remembering that large LNG and FLNG with tens of billions in associated upstream development and liquefaction facilities have always been, and will always be, a tall order, the more so in the current environment.
In the shadow of these giants, however, a number of cost-efficient, fast-track, smaller scale developments are flourishing. Here are some recent examples: one onshore and two floating.
Developed by Resources Energy Inc. comprising several Japanese investors, the project has an initial capacity of 1 MTPA. The plan is to buy existing gas reserves at wellhead prices rather than await a (costly) new pipeline from the Alaskan North Slope. The estimated cost is $1.35 billion for the LNG liquefaction facility and an adjacent power plant. A further $1.5 Bn will be spent on feed-gas supply and related infrastructure, giving at total of $2.85 Bn.
The plan also contemplates two to three new LNG import terminals on the Japan Sea side of Japan rather than on the Pacific Ocean side, as it is less earthquake-prone. These terminals will increase Japan’s emergency LNG storage which is just two weeks compared to oil reserves storage of six months.
Golar, Cameroon’s Societe Nationale des Hydrocarbures and Perenco will use Golar’s GoFLNG concept to monetize a field of 0.5 TCf, which can produce 1.2 MTPA over 8 years. The GoFLNG concept involves building and FLNG unit by converting an old LNG carrier, in this case the “Hilli”, a 1975-built 126.00
0 m3 Moss LNGC owned by Golar that was in lay-up.
The trend is confirmed as Golar placed an order for a second GoFLNG conversion, based on the “Gimi”, a 1976-built 126.000 m3 Moss LNGC also owned by Golar and in lay-up.
The first unit of Exmar’s barge-based FLNG concept, the “Caribbean FLNG” has 0.5 MTPA and 16,000 m3 storage and will be deployed at Colombia’s La Creciente gas field in 2H 2015.
In a confirmation of this trend, a second 0.6 MTPA and 20,000 m3 storage FLNG unit has been ordered by Exmar from Wison Offshore.
This guest post came courtesy of Jorge Ferreiro.
Are there any other small-scale LNG or FLNG projects to keep an eye on this year? Let us know your thoughts by commenting below.
To learn more about key projects and interact with leading experts from the small-mid scale LNG industry, attend the upcoming Asia Pacific Small & Mid-Scale LNG (APAC LNG) Forum.
About the author:
Jorge Ferreiro has a comprehensive perspective of the interplay among the multifarious commercial, market, legal and technical aspects of the LNG industry. Prior to his current role as LNG and FSRU specialist at ANCAP, he was seconded from ANCAP to Gas Sayago SA as LNG specialist for the Uruguay LNG terminal Project Team.
Jorge’s background include over 19 years as Technical Manager for major greenfield and brownfield projects in the refining and pulp & paper industries, working in Uruguay, the United States and the UK.
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