FLNG Offshore

and Nearshore
Contrasting Architectures, Technology
Drivers and Commercialization Challenges

Joe Verghese
April 2016

www.advisian.com
 Offshore FLNG Development
Key Features:

FEED gas is sourced from offshore subsea wells and subsea Operational threats to topsides process performance arise from
gathering system. subsea flow assurance issues (reception of slugs, pulsating gas flow).

The FLNG unit can be located in challenging deepwater Severity of metocean can impact topsides performance
terrains. and deliverability.

Subsea Wells LNG FPSO LNGC LNG Storage Gas Markets

Offshore gas field > LNG FPSO

> LNG
Transportation > Onshore LNG
Receiving and Storage
Atshore Deployment
Key Features:

The FLNG unit is moored atshore or portside in protected Since the FEED gas is pre- conditioned, this minimizes
waters, against a jetty or wharf. pre-liquefaction gas treatment.

FEED gas (e.g. shale gas) is sourced from the grid and The benign metocean atshore drives lower liquefaction equipment
meets pipeline transportation specifications. margins and simplifies storage and offloading technology selection.

Interstate/intrastate
Barge LNG Storage Gas Markets
grid

LNGC

FEED Gas Source > Trestle and Jetty

> FLNG Barge
> Onshore LNG
Receiving and Storage
Probable locations for atshore
deployment are off the coast of
US and Canada, in a proximity of
interstate/intrastate pipeline grids
Inshore Deployment
Key Features:

The FLNG unit is located in inshore waters, typically a few kilometres • Significant dredging operations to cut and maintain the channel for
from shore. Several reasons drive selection of this configuration: arriving LNG carriers

• Poor or unstable bathymetry at the shore line • 15 metres keel depth required at the jetty location

LNGC
Interstate/intrastate
LNG Storage Gas Markets
grid

LNG FPSO

Spur Line

Spur Line > LNG FPSO

> S2S Offloading to LNGC
> Onshore LNG
Receiving and Storage

Advisian / 5
 2 feasible considerations:

Offshore jetty arrangement (or optionally an

artificial island) mooring both the FLNG unit
and the LNGC

Or
A seabed moored FLNG vessel (shown above),
with product offloading to LNG trade carriers in
a side by side configuration
 Topsides Configuration & Building Blocks

FEED Gas Preparation LNG Liquefaction

Solvent
Regen
Dry gas
Inlet Gas LPG
Gas Treating Dehydration Liquefaction
Facilities Extraction
C3/C4’s Condensate
LPG/C5+ LNG Off-
Regen LNG Storage
Storage loading

LPG/Cond
Off-loading
H20
To ships
Utilities Utilities
To ships
 How is process performance
differentiated between atshore,
inshore and remote offshore
deployments?
Topsides Configuration & Building Blocks
Atshore and Inshore FLNG
• Pre-conditioning of gas for pipeline grid transport does
not eliminate FEED gas treatment steps required on the
FLNG unit
• Very stringent CO2 (max 50 ppm), moisture (1 ppm) and
BTEX removal specifications will require installation of
associated removal units
• CO2 specification of pipeline gas (typically 2% max)
limits duty and size of AGRU regenerator system
Offshore FLNG
• Front-end treatment must be resilient to contaminants in
raw gas received from subsea wells
• Enhanced motion characteristics in this environment will
require application of greater design margins to assure
performance
• Adverse impact on weight, footprint and overall
availability
 Concept/system differences

Feature Offshore FLNG Atshore FLNG Inshore FLNG

Pipeline Specification Pipeline Specification

Feedstock Subsea Production (raw gas)
Conditioned Gas Conditioned Gas

Upstream Architecture Subsea gathering system Interstate and intra-state grid Interstate and Intra-state grid

FLNG Substructure Shipshape (FPSO) Barge Shipshape (FPSO)

Required, but to a lower duty

Required, but to a lower duty
FEED Gas Treatment Acid gas removal, dehydration, specification due to gas pre-
specification due to gas pre-
Requirement HG removal required conditioning and moderately
conditioning and benign motions
benign motions.

Feed Gas Pre-treatment On FPSO On barge or (optionally) onshore On FPSO

LNG Liquefaction On FPSO On barge On FPSO

FLNG Liquefaction Cycles

Turbo-expander, SMR and DMR Turbo-expander, SMR and DMR Turbo-expander, SMR and DMR
FEED Matured

Advisian / 10
 Concept/system differences
Feature Offshore FLNG
PFHEs are robust, SWHE’s require
MCHE enhancement for structural
integrity and performance.
Significant design margins
required to ensure on-spec
AGRU Columns and
performance, avoidance of
Scrub Column
channeling, etc. arising from FPSO
motion envelope.
Cooling Medium Typically Seawater Cooling.
Power Supply Generation on FPSO.
Main Control Room and
Required on-board FPSO.
LQ
IHI Prismatic or Twin Row
LNG and LPG Storage Membrane (driven by
prevailing metocean).
Side-to-Side offloading with
LNG Offloading
loading arms or cryogenic hose.
Atshore FLNG
PFHEs are robust, SWHE’s require
enhancement for mechanical integrity
and performance.
Higher system integrity due
to benign motions.
Lower design margins required due to
benign motions.
Lower duty specifications for columns
arising from gas pre-conditioning to
pipeline specification.
IFC and World Bank guidelines limit
seawater temperature rise at discharge.
Could require adoption of air-cooling.
Power supply, if reliable, can be
arranged from onshore grid.
Possible onshore in proximity of jetty.
Twin Row Membrane (standard
membrane tanks may be feasible).
Jetty-based loading arm.
Inshore FLNG
PFHEs robust, SWHE’s require
enhancement.
Higher system integrity due
to benign motions.
Lower design margins required due to
benign motions.
Lower duty specifications for columns
arising from gas pre-conditioning to
pipeline specification.
Depending on inshore location, same
concern as with atshore seawater
discharge temperature could apply.
Usually generation on FPSO.
Grid power supply by subsea cable
possible.
On-board FPSO.
Twin Row Membrane or IHI Prismatic.
Loading arms for inshore jetty or
side-to-side offloading.
Advisian / 11
Conclusions
 Project
Technical Risk
Complexity

Capital
Expenditure
Atshore FLNG represents the
of technical
lowest level
complexity and project risk,
followed by the inshore based FLNG

Commercialization

Advisian / 13
 Project
Technical Risk
Complexity

Offshore FLNG represents

higher technical complexity, Capital
Expenditure
with elevated project and
operational risk
This can arise from:
• Marrying of the subsea architecture with the FLNG
• Raw gas as the feedstock for offshore FLNG instead of pipeline
conditioned gas for atshore/ inshore FLNG
• The more hostile metocean conditions, leading to potential
impairment to performance of topsides systems (fractionators,
exchangers, etc.)

Commercialization
 Cost indications
Atshore
FLNG proponents have claimed unit costs of circa 600 USD/tonne
per annum of LNG capacity.

Offshore
FLNG 1100 to 1500+ USD/tonne per annum (depending on
inclusion of costs of the subsea system).

Inshore
The unit technical cost for FLNG is expected to fall in between the
atshore and the offshore FLNG cost indications.
Find out more

Visit our website:

http://www.advisian.com/our-sectors/hydrocarbons

Contact:
Joe Verghese
Director – Hydrocarbons
E: joe.verghese@advisian.com
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