Australian FLNG projects are perceived to require large reserves to support a business case, with $multi-billion CAPEX and complex execution strategies with high risk of budget and schedule overruns.
In the South East Asia region a different development model is being pursued for small fields, in deep water and/or remote locations, and which are distant from accessible markets making a conventional gas development sub-economic.
Small FLNG developments can unlock marginal fields by avoiding high pipeline infrastructure costs and costly remote onshore LNG plant installation. In addition, the use of innovative contracting strategies and economies of scale, for example, design one, build many – can add further value.
S2V Consulting’s Francesco Piasentin has been working with clients in South East Asia on smaller scale FLNG developments in the last three years and commented “small FLNG will play an important role in the future gas developments and the South East Asia model could be implemented in Australia to unlock its marginal gas fields. Australia is perfectly positioned for small FLNG since it has stranded gas or larger spread fields that could be phased, a solid subsea, floating production and LNG operating know-how skill set to support these projects, along with a strong LNG sales intelligence”.
S2V Consulting has been working in South East Asia on early-stage Field Development planning for over 5 years and has implemented small FLNG concepts as a solution in appraisal and concept stages to develop stranded gas reserves covering due diligence support, technical definition, execution strategy and cost/schedule estimates. S2V Consulting has also developed economic models to assess the benefits of the FLNG solution against conventional offshore concepts.
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