Shell has signed an
agreement with the Technip Samsung Consortium (TSC) to enhance
collaboration on the design, engineering, procurement, construction and installation of
future floating LNG (FLNG) facilities, the companies said
The agreement builds on the existing relationship, formed in
2009, to ensure the parties can capitalize on insights gleaned
from the design and construction of Shell's Prelude FLNG
facility in Australia and expand the technology offering to the energy
It will drive a culture of joint delivery, continuous
improvement and ensure greater value from the collaboration for
all parties, according to project officials.
"Shell's FLNG vision and ambition is gaining momentum and
Technip, with its partner Samsung Heavy Industries, is proud to
support the additional projects that could be realized under
this agreement," said Thierry Pilenko, CEO of
Shell expects global natural gas demand to increase by 60% from
2010 to 2030, reaching 25% of the global primary energy mix and
within that, strong growth in LNG.
"This heads of agreement will enable Samsung, together with
partners, Shell and Technip, to further strengthen its
reputation as a definite leader in the floating LNG business
with the successful completion of FLNG projects to come,"
said Dae Young Park, CEO of Samsung Heavy
"I am very confident that Samsung is ready to construct
multiple FLNGs at its Geoje shipyard and is fully committed to
achieving the highest quality and on-time delivery of Shell's
FLNG facilities in accordance with the
spirit of the partnership," he added.
Floating LNG enables the development of gas resources ranging
from clusters of smaller more remote fields to potentially
larger fields via multiple facilities where, for a range of
reasons, an onshore development is not viable.
That can lead to faster, cheaper, more flexible
development strategies for resources that were previously
uneconomic or constrained by technical risks, helping to bring
more natural gas to the market.
"Shell is leading the industry in the development of FLNG,"
said Dr. Matthias Bichsel, director of projects and technology for Shell.
"Together, Shell and TSC are forging a strong alliance to help
ensure we are well positioned to deliver innovative FLNG
solutions across a wide range of opportunities in the future,"
"Central to this portfolio expansion are technology designs
that cater for a wider range of gas fields.In locations where
liquid production is low, for example, Shell's FLNG
Lean technology would be able to process
additional gas and produce more LNG, opening up new business
opportunities for countries looking to develop their gas
Shell and TSC are already working together on the world's
first FLNG project, Prelude FLNG, which will be
moored 200 kilometers off the northwest coast of Australia in
the Browse Basin.
As their experience grows, Shell and TSC said they believe
there are many more opportunities ahead.