A new approach to value creation – stranded gas resource commercialisation via low-cost small scale floating LNG projects
Daein ChaTransborders Energy Pty Ltd, Level 5, 1008 Hay Street, Perth, WA 6000, Australia. Email: daein.cha@transbordersenergy.com
The APPEA Journal 58(2) 516-520 https://doi.org/10.1071/AJ17201
Accepted: 13 March 2018 Published: 28 May 2018
Abstract
There are ~240 discovered, but stranded, offshore gas resources within the range of ~0.5 to 5.0 trillion cubic feet (TCF) of estimated ultimate recovery (EUR) of which ~40 such fields, representing 65 TCF of EUR, resides within Australian jurisdiction. Operators are challenged to commercialise these gas resources due to several factors such as:
• lack of materiality within their oil and gas resource portfolio,
• remote location, and
• lack of a low-cost development concept.
For such resources, a predetermined low-cost, small scale (∼1.0 million tonnes per annum production capacity) floating liquefied natural gas vessel and subsea wells tie-back development concept can be deployed to achieve commercialisation. Furthermore, the following should be promoted for the adoption to commercialise such gas resources:
• target breakeven liquefied natural gas (LNG) price as a key metric to confirm fit of the resource and the development concept,
• innovative financing and commercial structures to be co-developed among key stakeholders to enable project development within the constraint of a target breakeven LNG price, and
• differentiated LNG offtake value proposition for securing LNG offtake contracts that underpin project bankability.
Keywords: accelerated commercialisation of stranded gas resources, accelerated monetisation of stranded gas resources, competitive LNG supply source, generic FLNG solution, low-cost small scale FLNG, predetermined FLNG development.
With 20 years of oil and gas work experience, Daein specialises in LNG major capital project management, LNG business development and LNG procurement and trading. He joined Tokyo Gas Co., Ltd in 1998 and has since served roles of increasing responsibilities including Manager of LNG Procurement and Trading and Manager of LNG Upstream Business Development. Daein joined Chevron Australia (Chevron) in 2012 as Deputy Business Manager and in 2014 as Deputy Project Manager for the Gorgon Expansion Project. He also served on the Project Leadership Team to manage the development of Chevron’s Gorgon Stage 2 and Jansz-Io Compression projects. Daein has taken on the role as Managing Director of TBE since November 2016. Daein received his Bachelor’s degree in Management from the International Christian University (Japan), Masters in Business Administration (MBA) from the University of Virginia Darden Graduate School of Business Administration (USA) and qualification as Certified Cost Professional of AACE International accredited by the Council of Engineering and Scientific Speciality Boards. Daein is also a member of the Association of International Petroleum Negotiators (AIPN). |
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