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  • Breaking the offshore LNG stalemate


    S. Mokhatab

    LNG on a floating production vessel has yet to be deployed, despite several studies and technology development demonstrating its technical feasibility. High costs and perceived risks, combined with a lack of enthusiasm from governments and operators, have inhibited its exploitation, even as increasing global demand for natural gas is supporting the rapid growth and diversification of worldwide LNG. Major international oil companies conducted most of the early research, development and feasibility studies, which consequently focused on deploying large-scale facilities to develop very large gas reserves. There are, however, very few appropriately sized gas fields in remote offshore regions available to the majors for such deployments. Companies only drill for gas close enough to shore that a pipeline is feasible. If a very large gas field (> 6 Tcf) were found farther from shore, the operator could never afford to float enough real estate to make the prospect economical...

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