Onshore Versus Offshore LNG Import Facilities - Commercial Advantages and Limitations

Abstract

Abstract As LNG stakeholders assess whether and how to commit billions to re-gasification infrastructures, it is imperative that they address, early and meaningfully, the issues associated with commercial optimisation of their investments. Potential terminal developers face the option of moving offshore or stick with a traditional onshore development. There have been large developments in offshore receiving terminal design, where many companies are hoping that new technologies can ameliorate the actual or perceived risks of a land-based location - that is, without introducing too many new dangers and challenges. Until Excelerate and Energy Bridge Floating Storage and Re-gasification Unit (FRSU) opened in the Gulf of Mexico, all LNG import terminals were land-based. FRSUs are now under construction to operate in Tuscany, Italy (using a refitted LNG carrier), Southern California (using a new, dedicated vessel), as well as Pecem and Guanabara Bay in Brazil. This paper presents the learning from a number of site and concept selection studies. Through these early phases of project development there are commonly a limited number of parameters that are deceive for the concept that ultimately is chosen. Typical concept differentiators such as; cost, lead time, technological maturity, asset risks and safety will be discussed. Introduction As LNG stakeholder assess whether and how to commit billions to re-gasification infrastructures, it is imperative that they address, early and meaningfully, the issues associated with commercial optimisation of their investments. Potential terminal developers face with the option of moving offshore or stick with a traditional onshore development. There have been large developments in offshore receiving terminal design, where many companies are hoping that new technologies can ameliorate the actual or perceived risks of a land-based location - that is, without introducing too many new dangers and challenges. Until Excelerate and Energy Bridge Floating Storage and Re-gasification Unit (FRSU) opened in the Gulf of Mexico, all LNG import terminals were land-based. FRSUs are now under construction to operate in Tuscany, Italy (using a refitted LNG carrier), Southern California (using a new, dedicated vessel), as well as Pecem and Guanabara Bay in Brazil. In addition to these sites which are in the construction phase, offshore import facilities have been considered as an alternative concept for a number of other sites. Experience from such studies is that a limited number of key parameters are decisive for concept selection in terms of offshore versus onshore.