LNG industry will embrace floating regasification and liquefaction units as it seeks to enhance flexibility, an expert said on Wednesday.
Vessels located offshore to turn LNG back into a gaseous state and those used to liquefy gas are already gaining popularity as the cost of land-based plants becomes too high.
“This is the way the industry is going,” said London Offshore Consultant’s Brian Jones at an energy industry seminar run by the Society of Maritime Industries.
Brazil and Italy are involved in floating storage and regasification unit projects and there are 10 such projects around the world. Because they are cheaper and can be built faster than onshore facilities, “an FSRU has some quite attractive economic terms”, Mr Jones said.
Floating liquefaction is also growing; here, Shell’s huge Prelude liquefaction unit is blazing a trail. The 488 m Prelude will be based 200 km off Australia and will probably inspire further growth in this burgeoning sector.
“Prelude is the first and it won’t be the last,” said Mr Jones.
Norway’s Flex LNG is seeking a final investment decision for its liquefaction project off Papua New Guinea.
The rise of floating units means they are “almost common practice nowadays”, said Mike Pinkney from ARUP.