Floating LNG Business A breakthrough in offshore gas monetization
LNG Malaysia Forum 2013 19-21 March, Kuala Lumpur
Allan Magee, Ph.D.
R&D Manager, Offshore Product Line and Technologies, Technip Geoproduction Malaysia
Technip Chair in Deepwater and Subsea Technology, Universiti Teknologi Petronas (UTP)
Table of Contents
1. The Gas and LNG Market
2. Natural Gas Technology and Track Record
3. FLNG Challenges
4. Technip Leadership in the FLNG
2
1.The Gas and LNG Market
A Strong Increase in Gas Demand
World Energy Demand (1980-2035)
“The use of natural gas could rise by more than 50 per cent by
2035 from last year” IEA, 2011
World Energy Outlook, Special Report « Are we entering a golden age of gas? »© OECD/IEA, 2011
Source: Cédigaz, April 2011
% of world gas demand
3%
% of world gas reserves including proven
unconventional gas
Geographical Mismatch Between Proven Gas Reserves and Demand
5
3%
26%
6%
4% 4%
3% 8%
18%
31% 20%
4% 15%
39% 11%
5%
Increasing Long Term Demand in LNG
6 Source: Wood Mackenzie / Deutsche Bank , Jan 2010
Pacific Basin Supply
Atlantic Basin Supply
Middle East Basin Supply
LNG Global Demand
Mtp
a
How Is the LNG Market Evolving?
Onshore LNG
Small-sized LNG
Floating LNG (FLNG)
LNG Supply Chain
8
Upstream Treatment, Liquefaction & Export
Transportation Regasification Terminal
Distribution
Pipelines
FLNG Supply Chain
9
Upstream + Treatment, Liquefaction & Export
Transportation Regasification Terminal
Distribution
FLNG: New Opportunities for Oil and Gas Producers
Cost optimization in areas with high construction
costs
Deeper and further offshore reserves
Pipeline too complicated or too long
Insufficient reserves for dedicated onshore LNG plant
Monetize associated gas rather than re-injection or
flaring
Environment
Potential redeployment
10
Floating LNG mainly driven by economics
Economics
Other
2. LNG Technology and Technip’s Track Record
From Wells to LNG, a Complex Process
Sulphur
Recovery
Liquefaction
Field
Facilities
Methane
rich gas
LNG Storage
Loading
Fractionation LPG
Condensates
Dehydration Mercury
Removal NGL
Recovery
Refrigeration
Loop
Refrigerant
LNG
Pipeline
Reception
Acid Gas
Removal Fuel gas
(8-12% of feedstock)
LNG
Train
Methane
Utility Production for the Plant -Power Plant
-Cooling water
-Fire Fighting Systems
- Nitrogen Generation
- Flare
- Water Treatment
20°C, 50 bars
-162°C, 1 bar
Condensates (C4+)
Ethane, Propane, Butane, Pentane…
12
Sulphur
N2 Rejection
Technip: a Leading LNG Contractor for 45 Years
3. FLNG Challenges
Onshore to Offshore: Volume Optimization
15
From onshore to offshore plant: a space management
challenge to control weight & gravity center
Onshore LNG
FLNG
Example of Floating LNG Layout
Source: 2009 Technip R&D Study
16
Liquefaction
Pre-treatment
Power Generation
& Utilities
Flare
Cryogenic Export System
Control Room and
Living Quarter
Storage Inside the Hull
Technip Working on the Most Complex Projects
Akpo
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
19
64
19
66
19
68
19
70
19
72
19
74
19
76
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
20
18
20
20
20
22
20
24
Top
sid
e D
ry W
eio
ght
- to
ns
Year Installed
P-58 & P-62
Source: Infield Feb. 2008
Girassol
Technip: a Strong Experience in Large FPSO
N’Kossa
Dalia
FLNG
forecast
FPSO's Installed or Planned by Year and Size
Built by
Technip
Akpo FPSO, Nigeria, 320 x 60m,
Largest ever
18
4. Technip Leadership in the FLNG
Moving from Concept to Reality
20
Concretization of a decade of work
for Technip
Industry experience in large FPSO’s
Open sea transfer of LNG made possible
Issues with processing on moving platforms are
understood
Many FLNG projects at Conceptual, FEED stage
TECHNIP in charge of the TWO EPCIC Contract
for FLNG in the World (Prelude, Petronas)
Technological breakthrough for the energy
industry
Technip’s Unique Combination of Expertise
Offshore floating facilities
Onshore LNG Plant
Subsea field development
21
All the know-how and talents to better manage
projects, risks and interfaces
Floating LNG
EPCIC contract signature 5th June 2012
FLNG - Petronas
Technip leader of a
consortium with Daewoo
(DSME)
Air Products NTM
process
Offshore Malaysia
LNG capacity: 1.2 Mtpa
23 23
Master Agreement 28/07/2009
The design, construction and
installation of multiple FLNG facilities
over 15 years
Generic FLNG – FEED 28/07/2009
Prelude FLNG – FEED 08/03/2010
Offshore Western Australia
Prelude FLNG – EPCI 08/03/2010
Contract under which the FLNG would
be built when the project received the
final investment decision
(FID announced 20th May 2011)
First Steel Cutting in October 2012
Technip leader in a consortium with Samsung
Shell Floating Liquefied Natural Gas Contracts
Generic FEED and Prelude FEED –
finalized
Prelude – Under Construction
FLNG - Shell Prelude
15 year frame
agreement
Technip leader of
consortium with
Samsung (SHI)
Prelude FLNG, Australia
LNG capacity: 3.6 Mtpa
FID : 20th May 2011
1st steel cutting: 14th October 2012
Shell Prelude FLNG
25
FLNG : 488 m
Charles de Gaulle
aircraft carrier : 261 m
A380: 73 m
Australia
488 m x 74 m
600 000 t weight with tanks full
3.6 Mtpa LNG capacity
1.3 Mtpa condensate production
0.4 Mtpa LPG production
Total liquid production: 110 000
boe/day
200 km from the nearest point on the
mainland
200 - 250 m water depth
Conclusion
Concept to reality after many years of work
Breakthrough technology for the energy industry
Technip leadership
All competencies, know-how and talents
Capacity for safe execution
Associated with the biggest oil and gas players
Global footprint
Thank you
Technip, the leading player in FLNG
Top Related