Sectors

Regions

Sections

Forecasts & Analysis

Market commentary

Reference & Archive

LNG

FLNG finding role as stopgap for remote discoveries

FLNGs are being seen as a temporary alternative to much larger onshore gas projects, which are waiting for buyers and investors to return to the LNG market FLNGs are being seen as a temporary alternative to much larger onshore gas projects, which are waiting for buyers and investors to return to the LNG market.
By Andrew Walker 26 April 2018 0 30606
Prelude FLNG heading to Australia Prelude FLNG heading to Australia. (Shell Australia)

Companies are underplaying their hand by using FLNG to monetise large gas discoveries that would best be served by building multi-train onshore plants, delegates at the International Petroleum Summit in London heard on Tuesday. 

Resources at BP’s Tortue discovery are estimated at 0.9-1.1 trillion cubic metres, and the prospect of monetising it all using a 2.5 mtpa FLNG vessel is ‘ridiculous’, according to a consultant speaking at the sidelines of the conference.

However, developing large greenfield LNG export projects in the current market environment is difficult, which...