FLNG market may be regaining momentum

Feb. 13, 2024
The FLNG market has an expected EPC award value of about $15 billion, according to Westwood.

Editor's note: This Vessels/Rigs column first appeared in the January-February 2024 issue of Offshore magazine. Click here to view the full issue.

By Bruce Beaubouef, Managing Editor


Confidence may be returning to the FLNG market, with several units expected to be contracted this year, according to Westwood Global Energy Group. The FLNG market has an expected EPC award value of approximately $15 billion, says Westwood.

One project that looks to be moving forward is the Cedar FLNG project offshore Canada. Samsung Heavy Industries (SHI) recently announced the award for a newbuild FLNG unit valued at $1.5 billion, believed to be for the Cedar FLNG vessel. That announcement had been preceded by another one in December by Black & Veatch, which said that it had signed a heads of agreement (HOA) with Cedar LNG Partners LP and Samsung Heavy Industries (SHI) to secure capacity in SHI’s shipyard to support Cedar LNG’s targeted commercial startup in Kitimat, British Columbia. The HOA also calls for the stakeholders to work together to exclusively advance the EPC agreement for the proposed FLNG facility. According to Black & Veatch, this export facility will employ a near-shore FLNG vessel utilizing its PRICO liquefaction technology integrated with the hull and LNG storage tanks. Black & Veatch also says that it will be responsible for complete topside design and equipment supply. An FID on the Cedar FLNG project is expected soon.

Meanwhile, Wison New Energies says that it has started the design validation and early engineering studies for two FLNG projects owned by Nigerian companies Ace Gas and FLNG and Transoceanic Gas & Power. In January, Wison reported that it had launched the pre-FEED phase for two 3 million tons per annum (mtpa) FLNG vessels under a “design one and build two” strategy. Transoceanic’s FLNG project is located offshore Pennington and proximal to OML 289, a block operated by the company on behalf of Cleanwaters consortium. It is designed to supply 3 mtpa of LNG to the international market, and 150,000 metric tons per year (MT/yr) of LPG to the domestic market. As part of the phased development plan, the project will deploy a floating power barge concept, starting with a Phase 1 Power capacity of 250MW. The Ace Gas and FLNG project is located offshore Escravos and is also designed to supply 3 mtpa of LNG to the international market, and 150,000 MT/yr of LPG to the domestic market.

Other FLNG units that may be contracted this year include Delfin Midstream’s FLNG project off the coast of Louisiana, Nisga’a Nation’s Ksi Lisims FLNG project (Canada), Genting Oil and Gas’ AKM FLNG unit (Indonesia), Eni’s Coral Norte unit (Mozambique) and UTM Offshore’s Yoho FLNG project (Nigeria).

While industry observers will wait to see if these contract awards materialize this year, other FLNG projects are moving forward.  

The FLNG Gimi vessel has reached the Greater Tortue Ahmeyim (GTA) field location offshore Mauritania and Senegal following a voyage from the Seatrium conversion yard in Singapore. Supplier Golar LNG has notified GTA operator bp of the arrival.

Upon completion of preparatory activities, the vessel will be directed to its berth at the projects’ hub for subsequent connection to the offshore gas pipeline.

In the meantime, Golar LNG and bp have agreed that FLNG Gimi will proceed to moor offshore Tenerife in the Canary Islands while awaiting completion of the preparatory program. The vessel is due to operate on the GTA Field for the next 20 years.

Elsewhere, Eni has introduced first gas to the Tango FLNG vessel moored offshore Congo, 12 months after taking FID on the Congo LNG project. On completion of the commissioning phase, the vessel will produce its first LNG cargo sometime within 1Q 2024.

Tango FLNG has a liquefaction capacity of close to 1 bcm/yr and is moored alongside the Excalibur Floating Storage Unit (FSU) via a split mooring configuration. This is the first implementation at a floating LNG terminal, the company added.

Congo LNG will monetize gas resources from the Marine XII permit and reach around 4.5 bcm/yr of plateau gas liquefaction capacity under a phased development, with a target of zero routine gas flaring. A second FLNG facility (3.5 bcm/r capacity) is under construction and should start production for Eni in 2025.


Courtesy Golar LNG's "Third-quarter 2023 Results" presentation
Courtesy First Nations LNG Alliance / Cedar LNG