LNG

Economic Comparison of Alternatives for a Stranded Offshore Gas Reservoir

This paper compares project economics of floating liquefied natural gas, onshore liquefied natural gas, and gas-to-wire processes.

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This paper compares economics of a floating liquefied natural gas (FLNG) project with those of an onshore LNG plant and gas-to-wire (GTW) processes. Sensitivity analyses and tornado charts are used to evaluate the importance of various uncertain parameters associated with FLNG construction and operation. This study will be helpful for future considerations in using FLNG to convert offshore gas reservoirs previously considered stranded into economically viable resources. The results from this economic model can play a key role in the future of the natural gas industry and energy market in West Africa.

Assumptions

Before presenting different economic scenarios, the following assumptions must be established:

  • The pipeline will have the correct diameter, pressure rating, and metallurgy to transport produced gas.
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