Page 7: of Offshore Engineer Magazine (Feb/Mar 2014)

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Yes, there will be a niche market for ? oating, small-scale

LNG in the future. It will be especially rel- evant for small, dry Voices gas reservoirs with little impurities, for associated gas, and for liquefaction of pipeline gas. In short,

Waves of progress. With several mega projects underway, OE asked: these are projects where a relatively simple topside is feasible, and for many such projects ? oating LNG will be the only economically viable option.

Can ? oating LNG be done economically

Lars Petter Bilkom, DNV GL on a smaller scale?

LNG Segment Director

The obvious answer is that we believe so, but it depends

The market circumstanc- es, the environmental on the application. Wison Offshore & Marine sees smaller- circumstances, and the scale, barge-based FLNG as a niche that addresses the technical maturity mean unique market needs to export and monetize surplus gas that FLNG has now grown produced from onshore shale sources, as well as offshore to become a very serious stranded gas assets. These cost-effective LNG generation gas monetization option in a widening port- solutions are analogous to the use of power barges deployed to meet the folio of opportunities. Shell’s current FLNG electricity needs of emerging countries. The barge-based FLNG facility is not technology allows for the development of going to compete with premier projects like Shell’s Prelude development, but smaller ? elds through tiebacks and the abil- they do offer quick to market, relocatable resources to monetize second and ity to move the facility to a new opportunity even third-tier opportunities, or, in some cases, may serve as a temporary or at the end of ? eld life. The development of a “early production” unit until the larger and more costly permanent unit is de- small FLNG facility for an individual ? eld is veloped - either ? oating or onshore. Additionally, by using our “Plug & Play” being studied by our industry but is expected approach, we offer a much more cost-effective solution that may be brought in to be more challenging based on a combina- quickly or expanded in phases as near-shore developments grow.

tion of technological and economic factors.

L. Dwayne Breaux, President,

Marjan van Loon, VP LNG,

Wison Offshore & Marine Ltd.

Shell Upstream Development

Small scale FLNG is not only feasible, down-scaling has already

Yes, but we need to continue to drive down the cost of FLNG started. Smaller FLNG means faster lead times, greater ship- vessels. One way to achieve this is by leveraging our experi- yard ? exibility, easier ? nancing, and rapid return on investment. ence from FPSO tanker conversions, and generating a new

Thanks to shale gas, we’re also seeing small-scale coastal FLNG range of FLNG solutions from converted LNG tankers. SBM being considered as an economical alternative to large onshore

O