Offshore LNG and Gas Monetization
- Femi Adeoye Alabi (Total E & P, Nigeria)
- Document ID
- Offshore Technology Conference
- Offshore Technology Conference, 4-7 May, Houston, Texas, USA
- Publication Date
- Document Type
- Conference Paper
- 2020. Offshore Technology Conference
- 4.6 Natural Gas Conversion and Storage, 7.3.3 Project Management, 4.2 Pipelines, Flowlines and Risers, 4.3.4 Scale, 7.2 Risk Management and Decision-Making, 4.6.2 Liquified Natural Gas (LNG), 7.3 Strategic Planning and Management, 4 Facilities Design, Construction and Operation, 4.2 Pipelines, Flowlines and Risers, 4.6 Natural Gas, 7 Management and Information, 7.2.1 Risk, Uncertainty and Risk Assessment
- FLNG, Monetization, FSRU, Jetty-less, Supply Chain
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An anticipated acceleration in LNG's commoditization, driven by factors such as increased natural gas demand and newfound confidence in its potential as a marine fuel and as the cleanest of the fossil fuels, having lower emissions than either coal or oil fired power generation is expected to hand it a much larger role in global energy markets. The deployment floating liquefied natural gas (FLNG) facilities, becomes increasingly important as an option to achieve this task rather than an onshore facility. Jettyless LNG transfer concept could cut total project cost by 50%.
Recent policies in Europe have encouraged the use of renewables, with gas being the obvious complementary source of energy for power generation when these intermittent sources need backup power. A supply chain is the network of LNG from the upstream to the downstream called a distribution channel have three main flows which are the product, information and the finances flow. FLNG is an emerging technology for such fast and cost effective development of technology to unlock smaller, remote or environmentally sensitive fields. LNG Monetization will be thoroughly examined. FLNG however present some novel challenges less on the technical side and more to do with the supply chain, project management, stakeholder engagement, financing, regulation and tax. Understanding regulatory, legal, financing tax issues and engaging with the relevant stakeholders well ahead of investment decisions are keys. Flexibility is also being introduced in LNG Import Terminals, which have the potential to serve as a LNG Hub where LNG is received in bulk volumes from an LNG carrier and is then distributed out through gas pipeline. This solution is applicable when the visiting LNG carrier is connected to the onshore storage without a jetty. This solution enables small-scale LNG transfers to the LNG storage on shore or to the landlocked Floating Storage and Regasification Units. The international natural gas sector was geographically divided into distinct regional markets. The US and Europe supplied mainly by pipelines and Asia supplied by LNG. For all regions, there is a striking difference between the geopolitical context of international pipeline gas business and LNG which will be detailed in this work. The FSRU is lower in cost and can be reused while the land based terminals cannot be relocated. Geopolitics is a central concern for the oil and gas sector and can be viewed as a source of both risk and opportunity as identified by EY. Collaboration in adding values to the LNG business measured by total revenue will be examined in the work.
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