Transborders' 'Stranded Gas' FLNG Moves Step Closer to Reality with Multi-Party Deals Signed

Thursday, January 28, 2021

Transborders Energy, an Australian company working to develop a 1.5 mpta FLNG solution for marginal field development, on Wednesday said it had signed a multi-party and multi-project FLNG Solution Agreement with multiple contractors, bringing the FLNG unit closer to reality.

The signatories of the FLNG Solution Agreement are Add Energy Group, Kyushu Electric Power, Mitsui O.S.K. Lines, Ltd. (“MOL“), SBM Offshore“), and TechnipFMC.

"This FLNG Framework Agreement is a first-of-its-kind collaborative arrangement among world-class EPCI and O&M contractors, investors, and LNG offtakers to collectively commercialize a series of discovered but stranded offshore gas resource opportunities," Transborders Energy’s Chairman Jack Sato said.

Under the FLNG Framework Agreement, all parties involved have agreed on the terms related to the Engineering Procurement, Construction & Installation (“EPCI”) of the FLNG and upstream facilities and the gas offtake and liquefaction tolling arrangements that would apply on a range of stranded offshore gas resource opportunities;

Add Energy Group will serve as FEED and D&C contractor for the development wells, and as the operation and maintenance service provider for the development wells- Kyushu Electric Power will serve as a potential equity investor in the FLNG facility and as a potential offtaker from the project. MOL will also be a potential equity investor in the FLNG facility and as a potential offtaker from the Project.

Dutch floating production specialist SBM Offshore will be a FEED and EPC contractor for the turret mooring system and hull scopes of the FLNG facility and as the operation and maintenance service provider for the FLNG facility.

TechnipFMC will serve as FEED and EPCI contractor for the FLNG facility and FEED and EPCI services for the subsea production systems for the gas resource development. Transborders Energy will serve as manager and integrator of all projects.

Add Energy Group, Ole Rygg, CEO said, “We are proud to be able to contribute our technology, drilling, completions, operational and maintenance expertise under this multi-party framework agreement as Transborders leads the way in commercializing stranded gas resources through FLNG. This is an important project for Add Energy and the industry as we focus our efforts on unlocking opportunities that reduce our carbon footprint.”

TechnipFMC, Arnaud Pieton, President Technip Energies said: “This FLNG Framework Agreement is a new step for the FLNG industry and for our energy transition journey to a low-carbon society. Under this framework, TechnipFMC would further strengthen its FLNG leadership and leverage the expertise and learnings from its other three FLNG projects in operation or under construction.

Transborders' Sato said: "Our pre-agreed commercial arrangements, together with our pre-engineered one point five (1.5) million tonne per annum FLNG facility, can convert stranded gas resources into ‘project sanction (FID) ready’ projects within 24 months, while also allowing LNG offtakers access to competitive LNG supply sources and to attractive FLNG facility investments”.

Categories: Energy Industry News Activity Production FLNG Australia/NZ Floating LNG

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