Shell Gas & Power Developments BV (Shell) has 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 (FEED) for Shell's 3.5m ton per annum (mtpa) FLNG solution.
Shell's FLNG solution has the potential to place gas liquefaction facilities directly over offshore gas fields, thereby precluding the need for long distance pipelines and extensive onshore infrastructure. This innovative alternative to traditional onshore LNG plants provides a commercially attractive and environmentally sensitive approach for monetisation of offshore gas fields.
The broad operating parameters of the Shell design mean it can be redeployed. Shell’s standardised 'design one – build many' approach allows material repeatability gains to be captured during design and construction phases.
After completing the FEED phase, Shell will examine key aspects of each potential FLNG project in its portfolio before considering a final investment decision.
Matthias Bichsel, Shell’s Director of projects and technology commented, ‘Shell has a long history of technology firsts. The significant and positive progress we have made with our FLNG solution reinforces Shell’s position as a leading LNG technology developer.’