Belgium’s Exmar announced in its quarterly report that operator Pacific Rubiales Energy will delay start-up for the Caribbean FLNG project offshore Colombia, which was to be the first operational FLNG facility.
Exmar said that Pacific Rubiales attributed the delay to “unfavorable energy market conditions,” but that the company remains committed to the project. Exmar said the company plans to take delivery of the FLNG vessel in 2H 2015.
“They remain committed to the project and are evaluating different alternatives, including the relocation of the Caribbean FLNG barge to a different site,” said Exmar.
Pacific Rubiales noted in the company’s mid-January financial report that the company is being cautious during this period of low oil prices.
"The uncertainty in oil prices continues and although we believe that oil prices will recover, we are taking a cautious view on the timing, reducing both our costs and our 2015 capital budget to match expected cash flow,” said CEO Ronald Pantin. “The company has the operational and financial flexibility to adapt to the changing environment while continuing to grow production. Our reduced capital budget only has a marginal impact on production targets as we focus expenditures on our highest return and most material near-term projects."
In 2012, Exmar was contracted to build, operate, and maintain the floating liquefaction, re-gasification, and storage unit (FLRSU), which will serve the La Creciente field in Colombia’s lower Magdalena Valley basin for 15 years. Wison Offshore and Marine’s fabrication yard in Nantong, China, constructed the vessel, which undocked from the shipyard in late November.
The vessel will be able to convert 69.5 MMcf/d of natural gas from the field into LNG. The barge, which will measure 140m x 32m x 18m, and will be able to store 14,000cu m in onboard tanks. The processing unit will be moored to a jetty in 15m water depth. Topsides equipment will weigh about 5000t. Black and Veatch was contracted to build the liquefaction plant.