(56a) Selection of Optimized Gas Monetization Option with FLNG or Fixed FLNG

In general, as the gas E&P technology advances, gas fields development costs with the same conditions decreases, results in allowing development of gas fields in remote areas or deep water field. Upon adoption of advanced technologies and widen their practical applications to gas monetization, those of stranded gas field developments are feasible and economical.

Even several FLNG project are under construction stage with overcoming technical limitations and commercial challenges; however, it may be said that project developers prefer to follow the conventional development options, which have been proven with commercial operation by others. It is mainly because the conventional development option is relatively easier to identify potential risks with required costs associated with mitigation methodologies than newly developed options, such as FLNG and Fixed FLNG options.

Main parameters that affect selection of development options are 1) proven technology, 2) potential risks and mitigation, 3) economic returns, and 4) gas reserve (location, size, reservoir characteristics). It is clear if the economic returns of a development option cannot absorb potential risks, a project developer would not take risks in the selected gas monetization option.

This paper discusses the cost analysis, cost savings, potential risks in gas monetization with FLNG concept compared to the green field development option with conventional technology. This paper also addresses potential benefits and risks of FLNG and Fixed-FLNG concept with a virtual project development case as a reference. Advantages and limitations of the Fixed-FLNG concept have also been presented. This includes cost benefit, application flexibility, permit issue, environmental impact, construction requirements, etc.