Norwegian energy consultancy Add Energy and Australian firm Transborders Energy (TBE) are working together, with help from MODEC and TechnipFMC, to create a fast deployment business model for floating liquefied natural gas (FLNG) concept to access small-scale stranded resources.
The new business model targets discovered gas resources of 0.5-2.0 Tcf that have little value to their current owners because they are either in remote locations where tieback is capital intensive, or lack an economically viable development concept.
Key to the model is the deployment of a small-scale FLNG vessel. Rather than investing up to five years in identifying a gas resource, understanding its size and potential and creating a bespoke development concept, the new model establishes a pre-defined concept incorporating the use of a ca.1.0 million ton per annum FLNG vessel and applies it to fields that fit the concept.
Add Energy says this low-cost concept represents a radical change in gas field development and will unlock hundreds of the world’s previously uneconomic smaller natural gas plays.
Offshore Australia has been identified as suitable for an initial pilot project, with a target resource to be confirmed early 2018 and the project to be reach final investment decision by 2020. TBE is also in discussion with resource owners of other jurisdictions to pursue global opportunities.
Add Energy will manage the drilling operations, maintenance, safety and risk management of the projects and is the exclusive partner to engineer, procure, drill and operate the wells.
TechnipFMC is the exclusive partner for TBE on the engineering, procurement, construction and installation (EPCI) side for the subsea umbilicals, risers and flowlines and the FLNG vessel.
MODEC is the technical adviser for the EPCI of the hull, LNG tank and turret mooring system of the FLNG vessel, together with the operations and maintenance of TBE’s FLNG vessel.
Eduardo Robaina, VP for Well Engineering, Add Energy, said: “LNG development is currently focused on fields with large scale volumes between 5-10 Tcf or more. However, a supply shortage in LNG is expected from mid-2020 due to demand growth and a failure to proceed with new mega project developments.
“Large scale LNG projects typically involve up to five years of front-end engineering and design work and a further six years for EPC activities, but new projects need to progress now to capture this upside.
“The Transborders’ concept enables the development of previously uneconomic resources at a much faster pace than that of mega projects and will help feed the growing demand for energy, initially in Asia and elsewhere. Add Energy’s role will be to ensure well construction, maintenance and well intervention activities are carried out in accordance with best practices and industry standards.”
Subscribe
