The new business model targets discovered gas resources of ≈ 0.5 to 2.0 trillion cubic feet of gas that have little value to their current owners because they are either in remote locations where tieback is capital intensive or lack an economically viable development concept.
Key to the model is the deployment of an innovative small scale FLNG vessel. Rather than investing up to five years in identifying a gas resource, understanding its size and potential and creating a bespoke development concept, the new model establishes a pre-defined concept incorporating the use of a ≈1.0 million ton per annum FLNG vessel and applies it to fields that fit the concept.
This low cost concept represents a radical change in gas field development and will unlock hundreds of the world’s previously uneconomic smaller natural gas plays, says Add Energy.
Eduardo Robaina, VP for Well Engineering at Add Energy, said: “LNG development is currently focused on fields with large scale volumes between five and 10 trillion cubic feet or more. However, a supply shortage in LNG is expected from mid 2020 due to demand growth and a failure to proceed with new mega project developments.
“Large scale LNG projects typically involve up to five years of front-end engineering and design work and a further six years for engineering, procurement and construction activities, but new projects need to progress now to capture this upside.
“Transborders’ concept enables the development of previously uneconomic resources at a much faster pace than that of mega projects and will help feed the growing demand for energy, initially in Asia and elsewhere.”
Offshore Australia has been identified as suitable for an initial pilot project, with a target resource to be confirmed early 2018 and the project to be reach Final Investment Decision ready by 2020. Transborders Energy is also in discussion with resource owners of other jurisdictions to pursue global opportunities.
Add Energy will manage the drilling operations, maintenance, safety and risk management of the projects and is the exclusive partner to engineer, procure, drill and operate the wells.
TechnipFMC is a global player in engineering, procurement, construction and installation (EPCI) of oil and gas projects. It is an industry leader for FLNG and subsea, umbilicals, risers and flowlines (SURF) and is the exclusive partner for EPCI, SURF and the FLNG vessel
MODEC is a global expert in EPCI, operations and maintenance of floating production systems. It is the technical adviser for the EPCI of the hull, LNG tank and turret mooring system of the FLNG vessel, together with the operations and maintenance of the FLNG vessel.