Golar Management Ltd
11:15 - 11:45
Wednesday, 18 September 2019
T1.4 Golar FLNG - deployment stratergies, opportunities and commercial flexibility
Gastech 2019, Submission of Abstract from Golar LNG Ltd.
Submission Theme: Strategic, Midstream; Strategic Infrastructure Development – who, what, where, how and why?
Title: Golar FLNG - deployment strategies, opportunities and commercial flexibility
Presenter: Iain Ross, CEO Golar LNG.
The FLNG Hilli Episeyo (“the Hilli”) was accepted into commercial operations in Q2, 2018 and as of January 2019 has completed 14 commercial cargo loadings all on schedule. In 2013 Golar Management made a strategic decision to convert the Golar Hilli LNG carrier on a speculative basis to an FLNG facility. This critical and market leading decision mirrored a similar pro-active approach taken by Golar with respect to FSRU conversions some years earlier. The speculative FLNG decision was subsequently rewarded when the Hilli was contracted on a long terms basis to Perenco, offshore Cameroon. This was a transformative step for Golar to re-position the business as part of our mission to be a fully integrated LNG midstream solution provider.
The conversion approach, rather than new build, was adopted to provide the marine platform, ancillary systems and LNG storage to support integration with the selected mature LNG PRICO SMR liquefaction technology. Significant benefits in terms of outturn schedule (development to FID to first LNG) and specific cost ($/T) were captured on a reproducible basis, working with our main conversion contractors (Keppel and Black & Veitch)
Depending on local ambient and metocean conditions, the Hilli conversion solution will typically provide 2.5mtpa of reliable LNG throughput with a cost, efficiency and schedule footprint which is demonstrably best in class.
Whilst initially conceived as a vehicle to target smaller “stranded” gas reserves, Golar’s proven FLNG conversion concept combined with our commercial flexibility is resulting in a growing number of opportunities. These encompass a wide range of different LNG monetisation strategies and resource sizes, ranging from as little as 500Bcf to some of the largest gas discoveries in recent times. The FLNG conversion approach is being deployed to anchor projects and secure early revenue for resource owners utilising a phased development approach. Critically, this evolving strategy is proving synergistic with available finance, LNG demand and offtake appetite – and Golar will be at the forefront as the owner and operator of the next generation of FLNG conversions and new builds.
Golar will present a summary of real world development and deployment opportunities which have followed proof of concept incorporating valuable lessons learnt. We see a number of differing deployment strategies emerging each inter related with an appropriate commercial structure. We will present and discuss;
- Mega land based LNG projects – a case for anchoring through initial FLNG deployment
- Pipe line gas – FLNG critical path to early success
- Resource volume and associated gas monetisation strategy
- Risk allocation and performance
- Commercial flexibility; contract period, capacity, transaction structures (GSA, tolling) commodity linkages
- Where, with whom and what are the next near term opportunities for Golar FLNG?