Thanks Terry. A handy little tour of planned LNG developments.
Other than the obvious savings of building the FLNG ship offshore the article reveals a couple of interesting points.
The most interesting, was a comment by Neil Gilmour, Shell's FLNG GM.
Without any qualification, he suggests:
“There is a lot of undeveloped gas in deep water in the world,” Gilmour said. “There are several hundred trillion cubic feet of gas that have already been found.”
So Shell do not see FLNG as a solution to remote gas. They see FLNG as a solution to remote gas which is DEEP, as in, where there is absolutely no other option.
Well the stranded gas in the Bonaparte, i.e.: NT/P68 and/or Evans Shoal or B&C, is hardly deep, and when there is another option (i.e.: TSMP/TSLNG), FLNG will not be considered. Expansion at Darwin is also looking less viable, particularly if the southern fault block (aka: HS-1) comes in and Heron is confirmed as hosting 5 Tcf of gas.
There is a lot hanging on HS-1, not just the discovery value of gas, but will ensure TS is developed, and soon.
MEO Price at posting:
21.0¢ Sentiment: LT Buy Disclosure: Held
