Shell Signs Mega FLNG Deal
Shell Gas & Power Developments BV (Shell) signed a master agreement with a consortium comprising Technip and Samsung for the design, construction and installation of multiple floating liquefied natural gas (FLNG) facilities over a period of up to fifteen years, the company reported. Shell and Technip-Samsung also signed a contract for execution of the front end engineering and design (FEED) for Shell's 3.5 million ton per annum (mtpa) FLNG solution.
The broad operating parameters of the Shell design mean it can be redeployed. Shell’s standardized “design one – build many” approach allows material repeatability gains to be captured during design and construction phases. After completing the FEED phase, Shell will examine key aspects of each potential FLNG project in its portfolio before considering a final investment decision.
The master agreement and the FEED contract were signed in Paris, France, by Jon Chadwick, Executive Vice President Upstream International, and Matthias Bichsel, Director Projects & Technology on behalf of Shell; Thierry Pilenko, Chairman and Chief Executive Officer, and Bernard di Tullio, Chief Operating Officer, on behalf of Technip; and J. W. Kim, Vice Chairman and CEO, and H. Y. Lee, Executive Vice President and Chief Marketing Officer, on behalf of Samsung Heavy Industries (010140.KS).
Matthias Bichsel said: "Shell has a long history of technology firsts. The significant and positive progress we have made with our FLNG solution reinforces Shell’s position as a leading LNG technology developer.”
Jon Chadwick said: “Today marks a milestone in developing Shell’s generic FLNG solution. In partnership with various stakeholders, we are progressing several potential applications globally – gas fields for which Shell’s FLNG solution is the most viable approach.”
Thierry Pilenko of Technip added: “This project is a true representation of Technip's technological differentiation through the integration of all our core activities: LNG process, offshore facilities and subsea infrastructures. It gives us an opportunity to lead a powerful consortium with Samsung on the frontier areas of the gas business, creating value for Shell through innovation, technical excellence and delivery track record."
J. W. Kim of Samsung Heavy Industries stated: “Based on Samsung’s outstanding experience in LNG carriers and offshore projects, we are striving to expand our business to this new Floating LNG market. This large scale FLNG project awarded by Shell is an important milestone for us to launch into this new blue ocean. Samsung, together with its long standing and reliable partner, Technip, will create a distinctive success story in this challenging mega project.”