FLNG
Douglas Westwood estimates spending on FLNG will reach $47.4 billion in the six years to 2019
global Capex over the period to 2019, according to analysts Douglas Westwood (DW). While expenditure is ex- pected to increase in the exist- ing regasification market, the liquefaction sector is forecast to overshadow this, as capex associated with a floating liq- uefaction terminal is more than triple that of a typical floating import terminal. DW forecasts that expendi-
ture is set to total $47.4 billion over the 2013-2019 period, with over $28bn spent on FLNG liquefaction and $19.1bn on import terminals. Murray Dormer author of
DW’s new World FLNG Mar- ket Forecast said: “Economic growth is driving electricity de- mand in the developing world and Asia will be a focus region for both liquefaction and re-
The rise of FLNG T
he emergence of floating liquefaction will drive a signifi- cant increase in total
gasification terminals between 2013 and 2019; accounting for 35% of global Capex. “Australasia will account for 22% of the market, largely due to a number of liquefaction projects. Latin America will represent 17% of global FLNG expenditure, with projects in- volving both offshore liquefac- tion and regasification vessels. He said boundary disputes,
threats of civil unrest and war and terrorism are all ever-pre- sent challenges that the oil & gas industry is well-used to en- countering.
Dormer added: “However,
by siting infrastructure off- shore, FLNG could help miti- gate some proportion of risk in regions where these issues are apparent.
“Furthermore, developing
new onshore infrastructure can also be difficult due to local opposition (the ‘Not In My Back Yard’ or NIMBY effect). The use of offshore regasifica-
tion facilities, placed in relative proximity to existing gas mar- kets, connected to shore by pipeline, is one method to alle- viate such concerns.” DW director Steve Robert- son, added: “We are seeing the emergence of vast offshore con- ventional gas resources, which will offer a more predictable long-term source of supply. In excess of 100 Tcf has been dis- covered in Mozambique and Tanzania alone – equivalent volumes to the world’s current annual natural gas consump- tion. Whilst the conventional reserves in place are vast, de- velopment will be technically complex as the finds are in water depths ranging from 800m to over 2,000m. How- ever, with the progression of FLNG projects in Australasia, floating liquefaction is becom- ing an increasingly viable op- tion for the production and export of natural gas in East Africa. It is also important to note that theoretically, FLNG would be the most economical strategy with a lower cost per tpa.”
Shell’s Prelude FLNG concept
Dormer concluded: “With the commencement of con- struction of Shell’s first FLNG unit, we can consider the technology now an accepted solution. For more than 30 years FLNG export has been an ambition of the offshore industry, but it is now well on the way to reality. 2012 has been a real milestone for the industry with steel cut on the first project. The sector is now buoyant with the prospect of over $47bn to be spent 2013-2019.”
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November/December 2012 Offshore Technology
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