Shell to collaborate in FLNG with Technip, Samsung

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 on Thursday.

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 market.

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 Technip. 

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 Industries. 

"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," he continued.

"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 resources."

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.

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