Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Editorial Comment: The Future of FLNG: Less is More?

Global LNG export capacity is expected to increase by 45% between 2017 and 2022, to more than 400 metric MMtpy, with 90% of the new capacity coming from sanctioned projects in the U.S. and Australia. By 2050, this capacity is anticipated to exceed 700 MMtpy. Regasification capacity is anticipated to increase even more sharply.

Growing volumes of these production and import capacities will come in the form of floating liquefaction (FLNG) and regasification (FRGU) vessels. FLNG projects backed by major oil and gas firms and supported by adequate gas reserves and LNG demand are the most likely to achieve completion. Africa and Asia are viewed as key areas for liquefaction and regasification spending. Australian FLNG projects also have a good chance of moving forward, as they will be in close proximity to Asian countries with growing LNG demand.

However, according to a 2019 survey of LNG industry professionals by DNV GL, the industry will prefer smaller FLNG projects and tanker conversions in the future over massive FLNG projects. The first FLNG vessel to come online was Petronas’ $2-B, 1.2-metric-MMtpy PFLNG1 project (Fig. 1), started up in November 2016 offshore Sarawak, Malaysia. In March 2019, Petronas announced that it had relocated the vessel from the Kumang cluster field to the Kebabangan cluster field, offshore Sabah.

GP1219 Editorial Comment Fig 01

Fig. 1. Petronas’ PFLNG1 vessel was the world’s first floating liquefaction plant, commencing operations 3 yr ago offshore Malaysia.

Shell’s Prelude, pictured on the front cover, is the largest seafaring vessel ever built at 488 m long and 74 m wide. The long-awaited Prelude FLNG vessel, located offshore Broome, Western Australia, shipped its first cargo in June 2019. Shell and its partners produce an impressive 3.6 MMtpy of LNG, 1.3 MMtpy of condensate and 400,000 tpy of LPG on the floating facility, which cost more than $12 B to construct.

In the future, however, smaller vessels may have several advantages. Smaller-scale FLNG vessels are cheaper to build and operate, faster to deploy and effective at exploiting smaller volumes of stranded gas and serving niche markets. In these scenarios, it is more likely that a contractor will liquefy gas on behalf of the operator of the vessel, thereby reducing risk by purchasing a service rather than buying an asset.

For more in-depth information and forecasts for market trends, construction projects and spending in the LNG/FLNG and gas processing sectors, please see the Natural Gas/LNG section of the “HPI Market Data 2020” report, published by Hydrocarbon Processing in November and available for purchase at www.hydrocarbonprocessing.com/market-data/hpi-market-data-book GP


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment: China eyes continued expansion of smaller-scale LNG
-Adrienne Blume
Smaller-scale liquefaction in China, the world’s second-largest LNG importer, has experienced growth in recent years as China’s government integrates more gas into the country’s energy matrix.
Executive Q&A Viewpoint: SeaOne expands South American energy options with Compressed Gas Liquid technology
-Bruce Hall
SeaOne is a midstream infrastructure and logistics company that leverages its patented Compressed Gas Liquid (CGL™) technology to lower energy costs in various markets, generating new opportunities for economic growth and environmental stewardship.


Corrosion Control for Gas Treating Amines: Technology Leads to Increased Amine Unit Efficiency

Register Now

Accelerated basin drilling activities combined with increased fugitive gas emission capture technologies have increased trace oxygen levels in midstream natural gas. Oxygen present in concentrations even as low 30-50 ppm will cause costly corrosion-related problems in plant operations and processing equipment. One area in the plant most affected by oxygen is the amine unit. Oxygen will degrade MDEA-blended amines to corrosive amino acids and heat-stable amine salts.

Learn how a new technology from BASF combined with innovation from Nalco Water can increase amine efficiency and reduce costs associated with corrosion. This new technology will inhibit the degradation of amines from oxygen attack and control corrosion in process gas, while stabilizing the amine from degradation into bicine and other heat-stable amine salts. Together with Nalco Water’s real-time amine corrosion control program, have been proven to both mitigate oxygen degradation of amine and reduce the overall corrosivity of amine units.

August 19, 2020 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.