Shell awards floating LNG contracts to Technip and Samsung

Shell Gas & Power Developments BV (Shell) on Tuesday 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 450 metres x 70 metres, with a 3.5 mtpa LNG capacity, plus associated LPG and condensate production; taking total liquid production potential to 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 metocean conditions and process a wide range of gas compositions.(alex)