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

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
The $26-B small-scale LNG market is gaining exciting traction this year.
Regional Focus: Singapore moves closer to becoming a global LNG trading hub
-Eugene Gerden
Amid strong demand for LNG in the Asia-Pacific region and the need to secure regular gas supplies on a large scale, Singapore may become a major regional hub for LNG trade.
Show Preview
-Adrienne Blume
For the third time in its 47-yr history, Gastech is returning to Houston, Texas.


Reliable Operations & Saving OPEX for Gas Plant Refrigeration – Selecting the right technologies

Register Now

By selecting integrally geared turbocompressors for gas plant refrigeration duty coupled with a mag bearing turboexpander, operators get the added values of technology with highly reliable operations and reduced OPEX. Join Sami Tabaza and Chris Blackmer from Atlas Copco Gas and Process for a presentation followed by Q&A surrounding the turbocompressor and turboexpander technologies that can efficiently and reliably fit your gas plant design and operation to get the advantages of both technologies.

June 18, 2019 10:00 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.