Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

Japan's Kyushu joins study of small-scale floating LNG off Australia

Japan’s Kyushu Electric Power Co agreed to back a study to produce liquefied natural gas (LNG) using floating LNG vessels at small, remote gas fields that would otherwise be untapped off Australia, the project partners said.

Planning is at an early stage, with the consortium, led by Perth-based Transborders Energy, targeting first production in mid-2026 at the earliest, with capital costs expected to be around A$1.6 billion ($1.1 billion), Managing Director Daein Cha said.

“Transborders’ goal is to unlock stranded gas resources, develop a new LNG supply source and offer alternative LNG solutions,” Transborders Chairman Jack Sato said in a statement.

Transborders hopes to complete preliminary design work on small-scale floating LNG (FLNG) with TechnipFMC and Norway’s Add Energy and talks with potential owners of stranded gas resources by the end of this year.

Lining up Kyushu as a partner was key, Cha said, as the Japanese utility could be a customer for the LNG and could help the project secure access to low-cost debt finance from the Japan Bank for International Cooperation (JBIC).

“That enhances our relative competitiveness and cost-effectiveness when compared to other projects,” Cha said.

The group is looking to tap small gas fields, with reserves of between 0.5 trillion and 2 trillion cubic feet, similar to a small-scale FLNG project that Norway’s Golar recently set up off Cameroon.

The Cameroon project, producing 2.4 million tons a year, cost about $1.2 billion.

By contrast, Royal Dutch Shell’s 3.6 million tons a year Prelude FLNG project was estimated to have cost $17 billion.

$1 = 1.4476 Australian dollars Reporting by Sonali Paul in MELBOURNE and Aaron Sheldrick in TOKYO; editing by Christian Schmollinger

Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment
-Adrienne Blume
The continued expansion of natural gas trade is led primarily by growth in the LNG sector, which has tripled over the past 3 yr.
Industry Focus: The future of gas-to-power projects in Africa
-Shem Oirere
Natural gas is expected to play a central role in supporting Africa’s drive to achieve electricity connection for nearly 600 MM people without access to the grid, to reduce widespread reliance on coal for power generation, and to fast-track the continent’s slowed industrial expansion.
Regional Focus: Gazprom faces challenges for combined LNG/processing plant in Baltics
-Eugene Gerden
Russia’s largest natural gas producer, Gazprom, aims to build a giant project on the Russian Baltic seaport of Ust-Luga. The plans include the construction of a combined LNG and gas processing plant.

GasPro 2.0: A Webcast Symposium

Register Now

Following on the heels of the highly successful GasPro 2.0 Webcast Symposium in October 2018, the second GasPro Webcast Symposium 2.0 will take place on October 24, 2019.

The 2019 web event will gather experts in the fields of LNG, gas processing, and gas transport/distribution to share their operations expertise, engineering and design solutions, and technology advances and trends with our audience.

Attendees will learn about technology and operational solutions and deployments in a number of areas: plant design and expansion, construction, NGL production, optimization, sulfur removal, marine operations and separation technology.

October 24, 2019 08:30 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.