Add Energy has partnered with Transborders Energy (TBE) TechnipFMC and MODEC to create an FLNG business model to unlock small-scale stranded gas resources.
The new business model targets discovered gas resources of approximately 0.5 to 2.0 trillion cubic feet 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.
Add Energy, a consultancy provider, said that key to the model is the deployment of a small-scale FLNG vessel with around 1 mtpa production capacity that would be be applied to the field fitting a pre-defined development concept.
This concept aims to unlock hundreds of the world’s previously uneconomic smaller natural gas plays, Add Energy said.
TBE managing director Daein Cha said, “The economies of scale pursued by mega projects have not eventuated. They are too capital intensive and risky in terms of resilience and flexibility for what is a commoditizing business.”
He adds that the deployment of the pre-determined, small-scale FLNG concept on already discovered but stranded resources, establishes a new value proposition to the resource owners and LNG buyers.
Add Energy will manage the drilling operations, maintenance, safety and risk management of the projects and is the exclusive partner to engineer, procure, drill and operate the wells.
TechnipFMC is the exclusive partner for TBE in engineering, procurement, construction and installation (EPCI) of the SURF and the FLNG vessel.
MODEC is the technical adviser for the EPCI of the hull, LNG tank and turret mooring system of the FLNG vessel, together with the operations and maintenance of TBE’s FLNG vessel.
Offshore Australia has been identified as suitable for an initial pilot project, with a target resource to be confirmed early 2018 and the project to reach final investment decision (FID) by 2020. TBE is also in discussion with resource owners of other jurisdictions to pursue global opportunities