FLNG—A NEW DAWN FOR LNG

Abstract

Shell has developed a new approach to the commercialisation of remote offshore natural gas assets. Floating LNG (FLNG) has the potential to change the face of LNG production and supply in the future and offer customers the opportunity to access an even wider scope of natural gas resources in the 21st Century.

FLNG combines two simple, proven and reliable technologies: Floating Production, Storage and Offloading systems (FPSO) which are widely used in the oil industry, and LNG manufacturing, logistics and transportation. This paper describes progress by Shell, together with its Alliance partner Woodside, in applying its FLNG technology in northern Australia.

The FLNG concept offers significant reductions in development costs across the supply chain, removing the need for offshore trunklines and combining platform and processing together with LNG production, storage and loading. FLNG also offers attractive opportunities for production of smaller tranches of LNG at a cost that can be competitive with brownfield expansion of onshore facilities.

On the technical side, there has been practical field experience with almost all of the individual elements of an FLNG facility. Furthermore, Shell has carried out extensive engineering and design work on the integration of these elements to ensure that FLNG offers customers the same safety and reliability as from an onshore plant.

With the combined advantages of market proximity, proven reliability, strong relationships with established and emerging customers, a politically stable environment and strong government support, Australia offers an exciting opportunity for the development and first deployment of FLNG.