DW: Prelude to a $60B FLNG Growth Story?

Posted by Michelle Howard
Monday, March 03, 2014
Photo: Shell

Following first steel cutting in late 2012, Shell’s Prelude Floating Liquefied Natural Gas (FLNG) unit continues to take shape in Samsung’s Geoje shipyard in Korea, Douglas Westwood (DW) said in its Monday report.

At 488 meters long by 74 meters wide and with an LNG processing output of 3.6 million metric tons per annum (mtpa), its specifications are impressive; but what DW said is perhaps more interesting is that the Prelude unit has the potential to be a gamechanger, indeed Shell’s boss at the time ranked Prelude as his most important strategic decision. Prelude, along with several other near-term projects, forms the vanguard of a global FLNG vessel market that could be worth more than $60 billion from 2014-2020 according to DW’s latest publication on the subject.

Shell’s interest in FLNG has been driven by both the strong LNG market fundamentals, and the challenges associated with construction of large onshore liquefaction schemes, especially where promising gas fields are located far from shore. Shell and its technology partners have taken an approach to the design which allows modules to be added and subtracted based on the expected fluid composition, DW reported. For example, Prelude is a rich gas field, meaning the liquids content is relatively high, necessitating processing and treatment modules to monetize these valuable associated products. With a leaner gas input, these modules could be replaced with additional liquefaction capacity allowing processing of 6 mtpa of LNG.

Of course, being “serial #1” contains a number of challenges, including the costly upfront engineering time and the contract interface risks associated with managing such a complex project. In addition, standardization arguments tend to be viewed with some skepticism within the industry, DW added. External factors also impact on FLNG projects including the potential loss of economic benefit to local communities linked to siting the LNG production offshore. Balanced against these downside issues, Shell and its peers have the ability to make this kind of mega-project work, as well as the obvious requirement to book new reserves in increasingly challenging conditions.

douglas-westwood.com

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

ClassNK's Noboru Ueda Attends KOTC Delivery Ceremony

Mr. Noboru Ueda, Chairman and President of ClassNK attended the delivery ceremony for the M/T Al Yarmouk, constructed at Daewoo Shipbuilding & Marine Engineering Co.

RIMPAC Exercise Puts LCS Through Paces

It was the middle of May, and the littoral combat ship Independence was operating out of San Diego, testing components of the mine warfare mission package. The mission is one that,

New Superyacht ROCKIT.IT Launched by Feadship

Feadship says it has launched the outstanding 60.35-metre motoryacht ROCK.IT. Created for an experienced owner who has chartered Feadships and appreciated the essence of the brand,

Offshore

Drydocks World to Participate in SMM 2014

Drydocks World, the leading provider of maritime and offshore services to the shipping, oil, gas, and energy sectors, will participate in the prestigious 26th edition of Shipbuilding,

SBM Offshore Completes Real Estate Divestment

SBM Offshore is pleased to announce that is has completed the sale and lease back of its Monaco real estate portfolio.  The last of the three buildings was sold

Keppel T & T Appoints Lim Chin Leong to its Board

Keppel Telecommunications & Transportation Ltd (Keppel T&T) has strengthened its Board with the appointment of Mr Lim Chin Leong as an independent, non-executive

Energy

Brent Crude Slips Towards US$102

Brent crude fell towards $102 a barrel on Tuesday on concerns of slowing oil demand growth due to weak economic recoveries in China and Europe, although new unrest

Aker Solutions Update on Company Hive-Off

Aker Solutions informs updated unaudited financial information for the two companies - the new Aker Solutions and Akastor - that will be formed following the split

Nanotechnology & Big Data: New Review

A report commissioned by the Lloyd’s Register Foundation, reviewing the potential implications of nanotechnology on the safety and performance of engineering assets

LNG

Russia's Shipping Major Reports Strong 1H 2014

OAO Sovcomflot (SCF Group), Russia’s largest shipping company and a global leader in seaborne energy transportation and offshore services, has announced its financial

Skangass Granted Permission for LNG Terminal

The Swedish Government (Länsstyrelsen in Dalarnas Län) has granted Skangass permission to build and operate a new Terminal for LNG (Liquefied Natural Gas) within the harbour in Gävle, Sweden.

Policy Uncertainty Threatens to Slow Renewable Energy Momentum

IEA forecast sees renewable power as a cost-competitive option in an increasing number of cases, but facing growing risks to deployment over the medium term. The

Offshore Energy

Aker Solutions Update on Company Hive-Off

Aker Solutions informs updated unaudited financial information for the two companies - the new Aker Solutions and Akastor - that will be formed following the split

A Boost for UK Offshore Drilling? DW Monday Muses

Drilling activity offshore UK is now expected to increase over the next few years as government and industry reacts to the recommendations in Sir Ian Wood’s report

Drydocks World to Participate in SMM 2014

Drydocks World, the leading provider of maritime and offshore services to the shipping, oil, gas, and energy sectors, will participate in the prestigious 26th edition of Shipbuilding,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1400 sec (7 req/sec)