A recent study has found that Cott Oil & Gas Ltd’s plans to use a floating LNG (FLNG) vessel for development of Pandora gas field in the Gulf of Papua are technically and commercially viable.
A concept study by Wison Offshore & Marine evaluated the FLNG option as well as a near-shore LNG solution and found the former was the more attractive.
Cott said FLNG technology was becoming increasingly sophisticated in terms of cost-reduction, making it increasingly viable both commercially and technically for gas fields that cannot be developed by more conventional means.
The company added that Papua New Guinea is a growing LNG hub for Asia, and Pandora will be able to supply this market. Several vessel owners and infrastructure partners have expressed interest in a build-own-operate model for gas owners.
Pandora contains an estimated 800 bcf of gas resources. The reservoir is a buried reef structure in 120 m of water midway between Port Moresby and Daru in the Papua New Guinea sector of the Gulf of Papua.
The field was found in 1988 by International Petroleum Corp., but the presence of hydrogen sulfide in the gas and the uncertain gas market precluded development at that time.
