Partnership Targets Stranded Fields With Fast-Deployment FLNG Vessels
Add Energy has partnered with Transborders Energy (TBE) and joined forces with TechnipFMC and MODEC to create a fast-deployment business model for a FLNG (floating liquefied natural gas) free up for small-scale stranded resources around the world and to establish a new concept in global natural gas field development.
The international energy consultancy provider said the new business model targets discovered gas resources of approximately 0.5 to 2.0 Tcf of gas 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.
Rather than investing up to 5 years in identifying a gas resource, understanding its size and potential and creating a bespoke development concept, the new model establishes a predefined concept using a 1.0 million ton per annum (MTPA) FLNG vessel.
TBE Managing Director Daein Cha said, “The economies of scale pursued by megaprojects have not eventuated. They are too capital-intensive and risky in terms of resilience and flexibility for what is a commoditizing business.”
Add Energy will manage the drilling operations, maintenance, and safety and risk management of the projects and is the exclusive partner to engineer, procure, drill, and operate the wells.
TBE signed separate Memorandums of Understanding in April with TechnipFMC and Add Energy forming exclusive business collaborations to deploy a small-scale FLNG vessel with a subsea wells tieback development concept for commercializing a series of stranded offshore gas resources in Australia.
MODEC is the technical adviser for the EPCI of the hull, liquefied natural gas (LNG) tank and turret mooring system of the FLNG vessel, and the operations and maintenance of TBE’s FLNG vessel.
An initial pilot project offshore Australia has been identified with a resource to be confirmed in early 2018. The final investment decision is expected by 2020. TBE is also in discussion with resource owners globally.
Eduardo Robaina, VP for well engineering at Add Energy, said: “LNG development is currently focused on fields with large-scale volumes between 5 and 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 megaproject developments. Large-scale LNG projects typically involve up to 5 years of front-end engineering and design work and a further 6 years for EPC activities, but new projects need to progress now to capture this upside.”
Financing FLNG Facilities—What Lies Ahead?
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.
Supply Chain Consortium Launched for Decommissioning Services
Global spending on oil and gas decommissioning is expected to be $13 billion per year by 2040. The launch of a collaborative supply chain approach to global decommissioning offers an end-to-end solution to reduce the decommissioning burden, risk, and cost for operators in Europe, Asia, and Americas.
Catalysts for Offshore Progress: Service Company Partnerships, M&As
Executives from several service companies involved in the offshore space—including two sides of a recent hostile takeover bid—came together at OTC to discuss the virtues of collaboration and rationale behind M&A.
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07 May 2018