MELBOURNE, Feb. 2 -- Golar LNG Energy, Bermuda, and Thailand’s PTTEP have cancelled their heads of agreement and joint study agreement signed last year to develop a floating LNG (FLNG) project off northwest Australia.
At the same time, the two companies also announced termination of a memorandum of understanding for the global cooperation to identify and develop other FLNG projects.
The Australian part of the agreement to enter into front-end engineering and design studies for the FLNG project on a 50-50 basis was signed in July 2009.
The plan was to develop stranded gas reserves in the Timor Sea originally found by BHP Petroleum Ltd. in the 1980s and then bought by Coogee Resources before PTTEP took over Coogee in late 2008. The main gas fields are Cash, Maple, Biliara, Tahbilk, Pathaway, and Montara.
The companies have not revealed a reason for the split, but Golar LNG says it will continue to pursue FLNG projects that fit its financial objectives and technical capabilities. The company added it still believes highly cost-efficient approaches to gas development based on FLNG are the key to substantial additional growth opportunities.