Offshore LNG and Gas Monetization

Abstract

Objectives/Scope In recent years, there has exceptional expansion of the liquefied natural gas industry (LNG), which is largely attributed to rising demands in various parts of the world and triggered the emergence of Floating LNG (FLNG) as a faster and more cost-effective strategy for exploitation of gas resources with a huge competitive advantage in the business activities. However, the introduction of new technologies comes with new requirements for tax related issues. Methods, Procedures, Process It is a testament to the resilience and adaptableness of the LNG business to check the hypothesis that FLNG provides a method by that stranded gas discoveries will be monetized and essentially within a shorter time, lower fabrication execution risk and the entrepreneurial vibrancy that comes from competitive suppliers and approaches on FLNG. On FLNG plant cost, Brian Songhurst gives a review review of the state of the performance of FLNG after commissioning. The need for the FLNG industry to address both cost base and contractual price formation mechanisms as a viable channel for the delivery of gas is key. Results, Observations, Conclusions The impact of Independent Power Projects (IPP) in the third World nations act as game-changer in the monetization, new gas markets discoveries and increasing impact on the global gas economy. FLNG has potentials to transform the phase transition business from technical and business stand points within the economic development of remote offshore oil fields. The opportunity provided by the contractors to lease the FLNG vessel enables the smaller independent energy companies to avoid arranging project finance and carrying the asset on their balance sheet. However, it could also assist the major energy companies where current low oil prices are restricting capital investment to lease their FLNGs. Given the high level of interest in the researcher's two previous papers, this update will prove equally interesting and useful to analysts and participants in the gas sector, as floating technology continues to open new opportunities. Cost Comparison of the FLNG offerings are following a more industry standard design approach based on functional specifications and vendor standard equipment rather than client standards and design methods as used by the energy companies. The reason for the quality style approach is to position the FLNG facilities to be hired and reused by energy company. Novel/Additive Information The price of producing LNG from offshore gas reserves through the FLNG ought to be less than from onshore plants thanks to the lower CAPEX, albeit this will be somewhat offset by higher OPEX. This paper provides an update on the floating LNG sector (both floating liquefaction and regas terminals) over the past few years looking into some of the publication of the floating liquefaction (FLNG) contribution from the Oxford Institute for Energy Studies.