Shell awards floating LNG contracts to Technip and Samsung

Shell Gas & Power Developments BV (Shell) has signed a master agreement with a consortium comprising Technip and Samsung for the design, construction and installation of multiple floating liquefied natural gas (FLNG) facilities over a period of up to fifteen years. Shell and Technip-Samsung also signed a contract for execution of the front end engineering and design (FEED) for Shell’s 3.5 million tonne per annum (mtpa) FLNG solution.

Shell’s FLNG solution has the potential to place gas liquefaction facilities directly over offshore gas fields, thereby precluding the need for long distance pipelines and extensive onshore infrastructure. This innovative alternative to traditional onshore LNG plants provides a commercially attractive and environmentally sensitive approach for monetisation of offshore gas fields.

The broad operating parameters of the Shell design mean it can be redeployed. Shell?s standardised “design one ? build many” approach allows material repeatability gains to be captured during design and construction phases. After completing the FEED phase, Shell will examine key aspects of each potential FLNG project in its portfolio before considering a final investment decision.

The FLNG concept’s key dimensions are approximately 450m x 70m with a 3.5 mtpa LNG capacity plus associated LPG and condensate production making a total liquid production potential of over 5 mtpa. Topsides weight is estimated in excess of 50,000 tonnes. Shell?s FLNG design is suitable for more distant offshore fields, designed to operate under harsh sea conditions and process a wide range of gas compositions.

Matthias Bichsel, of Shell, commented: “Shell has a long history of technology firsts. The significant and positive progress we have made with our FLNG solution reinforces Shell?s position as a leading LNG technology developer.”

Jon Chadwick, of Upstream International, said: “Today marks a milestone in developing Shell?s generic FLNG solution. In partnership with various stakeholders, we are progressing several potential applications globally ? gas fields for which Shell?s FLNG solution is the most viable approach.”

Thierry Pilenko of Technip stated: “This project is a true representation of Technip’s technological differentiation through the integration of all our core activities: LNG process, offshore facilities and subsea infrastructures. It gives us an opportunity to lead a powerful consortium with Samsung on the frontier areas of the gas business, creating value for Shell through innovation, technical excellence and delivery track record.”

J. W. Kim of Samsung Heavy Industries stated: “Based on Samsung?s outstanding experience in LNG carriers and offshore projects, we are striving to expand our business to this new Floating LNG market. This large scale FLNG project awarded by Shell is an important milestone for us to launch into this new blue ocean. Samsung, together with its long standing and reliable partner, Technip, will create a distinctive success story in this challenging mega project.”