Over the last years available liquefaction capacity has become the bottleneck in the LNG chain. More gas reserves can be developed by monetising fields that are marginal due to magnitude and location.
A base-load liquefaction plant has, to date, never been deployed offshore. However, in the last ten years a number of oil companies and independent services providers such as Höegh LNG have committed substantial investment into conceptual and engineering studies to take the concept towards reality.
The main drivers of the FLNG sector are as follows: An increasing desire to monetize gas fields that are located far from existing infrastructure (pipelines, gas processing, onshore LNG export facilities, etc.) or where the cost of installation of such infrastructure is not competitive.
Onshore liquefaction projects have seen continuing delays and massive EPC cost rises the recent years. Many floating LNG companies are confident that, in certain circumstances,FLNGs can now compete with equivalent onshore projects. The addition of an FLNG also reduces the need for other on-field infrastructure lowering overall project cost.
Companies are now actively looking at export and production options that avoid gas flaring and un-necessary re-injection. Offshore solutions are part of these options.
At the present no FLNGs are in commercial operation and therefore much emphasis has been placed on developing specific technology such as sloshing-resistant containment systems, process topsides and offloading systems. These areas are the focus of much of the industry’s research and development.
Parties looking to progress FLNG developments include both the vertically integrated majors (e.g. Shell) and smaller technology/vessel providers.
Examples of applicable locations can be seen under.