We have touched on FLNG before. LNG terminals that are floating rather than on land, get past the problems of political risk, as well as enabling smaller resources to be accessed. At least that is the theory. Up until now, it has all been on paper. Now Shell has made an important announcement.
Shell Gas & Power Developments BV (Shell) today 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 (OTC:FEED) for Shell’s 3.5 million tonne per annum (mtpa) FLNG solution.
Now we have three major companies working together on an FLNG solution, an oil & gas giant, a ship builder and an engineering company.
This will unlook a huge amount of value for Shell in the long term, as stranded gas reserves get a route to market.