With growing interests in green energy and increasing demand for natural gas after Japanese nuclear plant accident, demand for small-and-medium offshore gas field development soared, which caused fierce competition for LNG-FPSO (FLNG) orders.
Since South Korea's Samsung Heavy Industries inked the order for world's first and largest FLNG in 2010, Daewoo Shipbuilding & Marine Engineering recently contracted its first FLNG, as well. Hyundai HI completed development of its own 2.5-mtpa FLNG model and aims to bag deals for two units in the second half of this year.
Particularly, sources said that energy majors are recently visiting Korean Big3 shipyards. ExxonMobil of the US is looking at a unit which would be similar size to Shell's large-size LNG-FPSO (3.6 mtpa) and made a several visits to potential builders in Korea.
Also, ConocoPhillips, which has been working on its FLNG plans for a number of years, is also understood to have had successive visits to Big3 and push ahead with ordering.
Besides, Total of France has finalized a generic design for a membrane LNG-FPSO, which produces one million to 3.7 million tonnes per annum LNG/LPG. Also, Norwegian Statoil is proceeding two projects that could be developed with FLNG and Australia’s Woodside is known to gas field development with using FLNG, as well.
Hoegh LNG of Norway signed an agreement to work with Thailand’s PTTEP on a study for an Australian Cash-Maple FLNG last month and it comes up against SBM-Linde JV on a front-end engineering and design (FEED) order. Sources said that Hoegh or SBM is expected to hook up with one of Big3 and organize a consortium to build FLNG.
As for the US' first FLNG project, promoted by Excelerate Energy, Samsung HI and Black & Veatch are doing a site-specific FEED work for 3-4 mtpa FLNG unit, scheduled to be completed by the end of November 2012. Another US' energy giant Sempra Energy is considering to introduce 3.5 mtpa barge-based FLNG at Port Arthur site on the US Gulf coast.
Malaysian state energy company Petronas officially signed an EPCIC contract for 1.2-mtpa unit with Daewoo-Technip consortium early this month and announced two companies for its second 1.5-mtpa FLNG FEED bid, which is planned to be finalized in around June 2013. Big3 and Japanese companies' consortiums are participating for the bid.
Also, Ichthys gas field development project, led by Japan's Inpex, which had awarded orders for a central processing facility and FPSO at Samsung and Daewoo each, is understood to be reviewing ordering FLNG.
Daewoo, in particular, is expected to win orders from Israeli Tamar FLNG and Papua New Guinea FLNG projects from late 2012 to early 2013 and gain gas field operation and sales profit as well.