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Floating gas liquefaction has progressed from a technology with future potential, where it has resided for more than 20 years, to one with viable commercial projects now under construction. For a technology that has had such a long development period, FLNG has recently moved up the development agenda.
NEW FLOATING LNG SUPPLY CHAINS
The initial breakthrough came from the independent sector, not from the major oil companies. In June 2008, Flex LNG confirmed with its partners, Mitsubishi and Peak Petroleum, its intention to jointly develop and market the world’s first floating gas liquefaction (FLNG) project off Nigeria. Flex LNG also announced a second FLNG project offshore Papua New Guinea to develop, in partnership with Rift Oil, remote gas reserves recently discovered onshore. By the standards of the baseload gas liquefaction plants being built around the world, the Flex LNG projects involving gas Floating Production Storage and Offloading (LNG FPSO) vessels.
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