Transborders Energy, a company developing a small-scale FLNG solution for stranded gas fields has entered into a Joint Study Agreement with Kyushu Electric Power Co., Inc. and its affiliate Kyushu Electric Australia Pty Ltd (Kyushu).
Transborders on Monday said it would work with Kyushu to develop a Floating LNG (FLNG) Solution and pursue the deployment on a range of stranded offshore gas resource opportunities.
Through the Joint Study Agreement, the two companies will team up on conducting technical Pre-FEED with Transborders’ strategic partners TechnipFMC and Add Energy; pre-negotiating key commercial terms of the FLNG Solution; and pursuing the deployment of the FLNG Solution on stranded gas resource opportunities.
“Based on this Joint Study Agreement, Transborders has executed relevant agreements with TechnipFMC and Add Energy to commence the technical Pre-FEED work. MODEC Management Services plans to give support to the Pre-FEED work as operational advisor,” Transborders said.
Upon completion of the Transborders’ FLNG Solution development work in 2019, Transborders will be in a position to convert a range of stranded gas resources into ‘project sanction (FID) ready’ state within 24 months after FLNG Solution deployment, while also allowing LNG buyers access to competitive LNG supply sources, Transborders added.
Transborders’ Chairman Jack Sato says, “Transborders’ goal is to unlock stranded gas resources, develop a new LNG supply source, and offer alternative LNG solutions. Participation by major Japanese utilities as strategic partners, such as Kyushu, in the Joint Study endorse and add significant value to our FLNG Solution.”
Announcing the project targeting stranded gas field developments via small-scale FLNG back in 2017, the partners then said the project might help develop hundreds of small gas fields.
Transborders Managing Director Daein Cha at the time said: “The economies of scale pursued by mega-projects have not eventuated. They are too capital intensive and risky in terms of resilience and flexibility for what is a commoditizing business.
“However, the deployment of our pre-determined, low cost small scale FLNG concept on already discovered but stranded resources with innovative financial and commercial structures delivered by a small but high caliber team establish a new value proposition to the resource owners and LNG buyers.”
Offshore Australia was then identified as suitable for an initial pilot project, with the partners at the time saying that Final Investment Decision might be reached in 2020.
Offshore Energy Today Staff
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