FLNG –
OPPORTUNITIES
FOR AUSTRALIA
JEANETTE ROBERTS
1
AOG 2015
FLNG – OPPORTUNITIES FOR
AUSTRALIA
Topics to be covered today include:
Why FLNG for Australia
Technical innovations
Collaboration
FLNG training
Supply chain
Path forward
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WHY FLNG FOR AUSTRALIA
FLNG is suited to Australia for a number of
reasons:
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• Australia has large, undeveloped gas fields
offshore north-western Australia
• Many of these fields are located far offshore,
remote from any existing infrastructure
• The local market for gas in WA and NT is relatively
small
• Generally commercialisation of large gas fields is
achieved via LNG
• FLNG enables facilities to be located in the field,
minimising the environmental impact and overall
complexity of the development.
FLNG
FLNG is a new technology to provide an
LNG liquefaction facility on board a floating
hull
Gas is liquefied to a final LNG product
LNG product is stored in the vessel hull and offloaded to
export tankers
Other products such as condensate and LPG may also be
produced
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FLNG
FLNG topsides are far more complex than traditional FPSO
topsides
FLNG is an attractive development solution for fields where
limited infrastructure is available
The environmental footprint of an FLNG development is
significantly less than an onshore FLNG liquefaction plant
where offshore facilities, pipeline and shore crossing all
create an environmental impact.
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TECHNICAL
INNOVATIONS
FLNG
Topsides facilities are far more
complex than most offshore
facilities
Topsides may include boilers
and fractionation columns,
equipment that is not normally
included on an offshore facility.
Small scale FLNG solutions are
currently being developed
Some operators are offering
leased FLNG facilities, similar to
leased FPSOs.
OPERATING
EXPERIENCE
FLNG projects will give Australia experience in operating:
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The world’s largest floating facility
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In a cyclone area
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Very remote
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With equipment not normally seen on an offshore facility:
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Boilers and steam system
Fractionation
Cryogenics
How do we export this experience?
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We need to identify, define and market this experience.
REMOTE OPERATION
FLNG will entail operating a
complex offshore facility in a very
remote area
• What opportunities does this
present?
Technology enables us to support
the offshore team with expert
skills
• To enable better decision making
• To establish protocols and
decision making for emergency
response and major incidents
In WA the mining industry has
well developed technology
for remote operation.
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Development of technology to
support remote operation of
FLNG vessels will be a key
technical innovation
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We need to recognise this
innovation and look for
opportunities to export these
skills.
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FLNG is a learning curve for all
personnel
PRODUCT
OFFLOADING
Product offloading from an FLNG vessel requires development of
offloading technology in a number of areas:
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Offloading of multiple products – LNG, condensate, LPG etc
• Both side-by-side and tandem offloading
• Side-by-side offloading from a floating facility that is:
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• Larger than any FPSO
• Located in a cyclone region
• Including very complex processing facilities
EXECUTION OF MEGAPROJECTS
Australia is currently constructing 7 new greenfield LNG projects
All of these are extremely large and complex mega-projects,
global by any scale.
As a result, we have developed expertise in:
Very large project execution
Construction in very remote areas
Logistics and supply chain
Quarantine and environmental management
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COLLABORATION
COLLABORATION
OPPORTUNITIES
Taking advantage of this FLNG opportunity requires
collaboration between all stakeholders:
•Global centre for FLNG Learning and Research
• Established in 2011 between Shell, Curtin University and
ACEPT
•Centre for Offshore Foundation Systems
•WA Energy Research Alliance
•Floating Systems Centre
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•Oil and Gas Centre of Excellence
FLOATING SYSTEMS CENTRE
Concept development and progress
• Concept development by WA:ERA partners (UWA, Curtin, CSIRO) in early
2013 at LNG 17 - strong consultative process with industry and stakeholders
• Expressions of support from major operators, service providers, industry
bodies including APPEA, Engineers Australia, SPE, SUT, SEA, regulators
• Potential link to an Australian Government funded Industry Growth Centre
for Oil, Gas & Energy Resources that is to have an industry-led board
o Prospective Government-Industry-Research co-investment
• Australian Government supported WA:ERA scoping work and remains
supportive
• With a Floating Systems Centre, experience and technology can be shared,
covering R&D, training, operations and maintenance, resulting in wider
collaboration and the opportunity to develop even better technology
solutions across a wider group of participants and services exports.
FLOATING SYSTEMS CENTRE
Objectives and potential outcomes
• To open up opportunities to collaborate and enable companies in Australia
and globally to better manage uncertainty and costs related to nextgeneration off-shore projects –> floating systems and FLNG
• Focus world-class expertise on addressing industry challenges
o Unlock export potential of Australia’s vast off-shore oil and gas
resources with targeted solutions to Australia’s unique production
challenges.
• Build high-value capability and skills
o Training a skilled workforce
o Attracting globally leading engineering, technical and environmental
service companies to Australia or transfer knowledge and technology
• Leverage Australia’s first mover advantage and investments in FLNG
• Build up competitiveness in offshore projects and increase LNG exports
• Streamline regulatory approvals, underpin safety and environmentally
sustainable operations by understanding, monitoring and mitigating risk.
SPECIFIC RESEARCH AREAS
Where research expertise is aligned with industry priorities
1. OFFSHORE ENGINEERING
Metocean
Offshore structures
Offshore hydraulics
Offshore geotechnics
LNG offloading
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Industry Issues
Metocean forecasting and modelling,
weather, currents, wave, cyclone
conditions knowledge
Anchoring and mooring
Offloading
Sloshing
2. OFFSHORE PRODUCTION
ENGINEERING
Gas processing of floating structures
Flow assurance subsea
Subsea processing
Water and waste management
3. OFFSHORE ASSET
MANAGEMENT &
OPERATIONS
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Industry Issues
• Flow assurance, hydrates
management, cooling water systems
• Scalability, miniaturisation
• Subsea compression/processing
• CO2 management
• Water treatment
Operational
optimisation
of offshore
systems
Logistics &
Productivity
maintenance
optimisation
Industry Issues
Remote operations and communications
Asset integrity
Operations optimisation
Risk management
Remote operations & comms
Asset integrity
Operations optimisation
Risk management
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Industry Issues
Collaborative working with multiple vessels
Understanding changing economics of LNG
Adequacy of data for regulatory approvals
Environmental, safety standards, regulations
Economic forecasting, modelling
Training/skills development incl. project mgt
Social licence
4. SOCIO-ECONOMIC,HUMAN,
SAFETY & ENVIRONMENTAL IMPACT
Productivity and commercial viability
Safety and Human Factors
Economics, Law and Regulation Environment
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FLNG
TRAINING
World-first FLNG training at ACEPT
Global Centre of excellence in
FLNG learning & research
Challenger Institute & Curtin
University lead consortium partners
Shell first partnership contracting
FLNG education, training &
research services
Shell invested in training ACEPT
staff to enable them to train in this
new technology
World-first FLNG training at ACEPT
Currently consulting industry as to
what equipment and software will
best serve the LNG/FLNG markets
ACEPT well placed to offer similar
services to other companies
requiring customised LNG / FLNG
training
ACEPT and Maritime divisions
blend both the process and
marine aspects of FLNG
ACEPT for the Future
 Remote access to simulation
and physical training
infrastructure
 High level technical training –
applied engineering,
instrumentation and control
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SUPPLY
CHAIN
SUPPLY CHAIN
OPPORTUNITIES
Use the current FLNG developments as a test case
•Map the supply chain
•Identify opportunities for Australian suppliers:
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Suppliers’ current capability
Gap analysis
Supplier development required to fill those gaps
Implement a (resourced) action plan to achieve that
development
We already have the Entrepreneurs’ Infrastructure Programme
and other initiatives to help suppliers.
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• Support and develop these programmes
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PATH
FORWARD
HOW DO WE TAKE ADVANTAGE
OF THIS OPPORTUNITY?
Australia is in a unique position to take this FLNG operating
experience into technology development and innovation
Elements of the technology are proven,
• but not on this scale
• with remoteness and cyclones
The integration is unique
Opportunities for:
• Fundamental research
• Incremental research
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Both are valuable
OPPORTUNITIES FOR
AUSTRALIA
• Perhaps more questions than answers
• But let’s intensify the conversation
• Let’s ensure we don’t miss this opportunity
None of this will happen without resources:
• People
• Funding
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• Focus
Strategic Energy Insights