Shell to push ahead with floating LNG

Shell Gas & Power Developments BV, The Hague, signed an agreement July 28 in Paris with a consortium of Technip and Samsung for design, construction, and installation of several floating LNG facilities over a period of up to 15 years, according to an announcement from Shell.

Jul 28th, 2009

By OGJ editors
HOUSTON, July 28
-- Shell Gas & Power Developments BV, The Hague, signed an agreement July 28 in Paris with a consortium of Technip and Samsung for design, construction, and installation of several floating LNG facilities over a period of up to 15 years, according to an announcement from Shell.

The companies also signed a contract for front-end engineering and design for Shell's 3.5 million tonne/year “FLNG solution.”

Shell conceived its technology, said the announcement, to place gas liquefaction directly over offshore gas fields and thereby precluding long-distance pipelines and extensive onshore infrastructure.

The concept's key dimensions are about 450 m by 70 m, with a 3.5 million tpy LNG capacity, plus associated LPG and condensate production, taking total liquid production potential to more than 5 million tpy. Estimated topsides weight is more than 50,000 tonnes, said the announcement.

Shell’s FLNG design is, according to the company, “suitable for more distant offshore fields, designed to operate under harsh metocean conditions and process a wide range of gas compositions.”

The broad operating parameters of the Shell design mean it can be redeployed, said Shell. Its standardized “design one—build many” approach permits “material repeatability gains” during design and construction. After completing the FEED phase, Shell said it will examine key aspects of each potential FLNG project in its portfolio before considering a final investment decision.

“This innovative alternative to traditional onshore LNG plants provides a commercially attractive and environmentally sensitive approach for monetization of offshore gas fields,” said Shell.

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