floating LNG (FLNG)

The facility would enable exports from one of the world’s largest gas discoveries to new markets, primarily in Europe and Asia. The Leviathan partners have signed deals to export gas to Middle Eastern countries such as Egypt and Jordan.

Wood and KBR inked a multimillion-dollar contract to deliver integrated front-end engineering design (FEED) for Shell Australia's Crux project to build a not-normally-manned (NNM) platform and gas export pipeline located approximately 600 km north of Broome, offshore Western Australia (WA). The Crux field water depth is 110 to 170 m.

DNV estimates that gas will be the world’s primary energy source by the mid-2020s. Growth in LNG capacity is expected as the midstream sector invests in connecting shifting sources of gas with changing demand centers. Other factors also will drive the globalization of gas trading markets.

The ceremonial event took place at Geoje Island, South Korea. Startup of LNG production in offshore Mozambique’s Area 4 is expected in 2022.

Although the FLNG concept has been around for decades, only three units are in the water and operational or under commissioning as of 2018. As the mitigation of technological risks is demonstrated, commercial risks become the focal point and the challenge to financing the capital-intensive projects.

While the floating liquefied-natural-gas (FLNG) option initially looked promising, high capital expenditure and very high operational expense (OPEX) have limited its potential application, with four potential FLNG projects being canceled in Australasia in the last 2 years.

Add Energy has partnered with Transborders Energy and will work with TechnipFMC and MODEC to develop a 1.0-MTPA FLNG vessel for small-scale stranded fields.

Air Products, BHGE, Norsafe, and Sofec won contracts for Eni’s Coral South FLNG project in Mozambique.

Global trade for LNG is projected to rise by 50% by 2020. There is a clear acceleration in demand for small- and medium-scale LNG, necessitating splitting of LNG into smaller load parcels. Transfer methods applicable to deeper water, smaller LNG carriers, and harsh environments are critical.

The Prelude FLNG begins the 3,600-mile journey from South Korea to northwest Australia; expected to remain at final destination for 20–25 years.