Oppenheimer Film Discussion for Philosophy and Film
Unlocking Offshore Gas Reserves with Floating LNG
1. Tapping the potential of floating LNG
Organisations across the planet are slowly waking up to the possibilities presented by
floating liquefied natural gas (LNG), which for many is currently an untapped
revenue stream.
Despite having significant potential, however, the majority of organisations in the oil
and gas sector are still not benefiting from the opportunities presented by this
emerging technology.
As floating LNG allows for the tapping of offshore gas reserves and access to
stranded fields, and is an alternative to costly infrastructure investments, many expect
interest in it to gain momentum in the coming years, and one of these is the Bermuda-
based Teekay LNG Partners, the largest LNG tank owner in North America.
In an interview with Bloomberg, Peter Evensen, chief executive officer of the
organisation, said that tankers which can convert liquid to gas onboard will be in
"increasing demand" in the next ten years, mainly as a result of rising electricity
production boosting consumption.
He stated: "The biggest new thing in the LNG area is floating storage regas units.
These are ships that cater for a sudden need for gas for power."
According to Mr Evensen, the company has so far identified 30 different sites which
may need floating LNG converters in the coming five years, and these range from
global powerhouses such as China to Bangladesh and Indonesian islands.
The current head of the company's North American division is set to take over as
parent company Teekay Corporation's chief executive in 2011 and said that during his
tenure he will be seeking to expand the number of tankers being used across the
planet.
As the technology enables transportation by sea to markets not yet connected by
pipelines, he said that the tankers effectively act as "import terminals", because they
are capable of carrying LNG to these areas as liquid before converting it back to gas
and sending it to local pipelines.
Companies utilising the technology find that the key benefits of doing so are
unlocking offshore gas reserves, monetising stranded fields and bypassing expensive
infrastructure, and Mr Evensen recognises that the likes of Dubai and Kuwait will also
show interest in the next five years.
"That's probably where you are going to see a lot of incremental traffic. We are also
seeing more places that burn fuel oil start to switch over to gas," he told Bloomberg.
At the moment, the global LNG tanker fleet capable of converting LNG into gas
consists of 15 vessels, and Teekay, which currently owns 15 LNG tankers without this
2. capability, earlier this year confirmed that it had purchased a 50 per cent stake in one
of these advanced carriers.
However, the LNG chief executive said he is currently "pessimistic" about the state of
US LNG exports, as costs are generally higher than in regions such as Qatar, mainly
due to the time taken for the commodity to reach consumers.
Nevertheless, companies such as Freeport LNG Development, Macquarie Group and
Cheniere Energy have stated their intention to build LNG export terminals across the
US.
Mr Evensen speculated: "Gas has a great future in the US, but I don't believe
exporting gas from the US has a great future."
"Today you have Qatar, Malaysia, and Indonesia exporting LNG, but the one that's
going to be huge in the future is Australia. There is going to be plenty of gas even
before you take into account new LNG projects in Africa."
In terms of the distances which need to be travelled, he said that it is "clearly" less
expensive to bring gas from the Australasian countries and Indonesia to the major
LNG import markets, which include China, Japan and Korea.
One thing is clear, however, the global floating LNG market will continue to grow in
the next ten years and organisations which have the knowledge and expertise to assess
the business case for investing in the technology will be the ones who benefit the
most.
The Global Floating LNG Summit will be hosted from 24th - 26th January in London. For more
details, please visit the website: www.globalflngsummit.com , call freephone: 0800 652 2363
or email: enquire@iqpc.co.uk.
3. Register and pay before 17th December 2010 and save up to £200
GLOBAL FLOATING
LNG SUMMIT 2011
Unlock offshore gas reserves, monetise stranded
fields and bypass expensive infrastructure
This year’s expert
participants include:
Quote Senior Vice President - Operations
FLNGSLIDE Excelerate Energy L.P.
to receive a
20% discount Manager Concept Development
on your FLEX LNG
2-Day Conference: 25th-26th January 2011
www.globalflngsummit.com
conference Vice President
Pre Conference Workshop: 24th January 2011 ticket LNG Marine Operations
America Square Conference Centre, London, UK E.ON Ruhrgas
Floating Liquid Natural Gas represents a significant and yet
untapped revenue stream. The Global FLNG Summit will provide Director
operator led, in-depth analysis on how to: Methane Services
BG Group
• Perfect ship-to-ship transfer with the latest technical developments
• Utilise the latest advances in floating re-gas and liquefaction LNG Business
Development Manager
technology Centrica
• Ensure that your FLNG project is safety compliant from its inception
with direct guidance from the HSE General Manager
Sigtto
• Build the business case for FLNG investment with a 360 degree
assessment of the financial and legal requirements Head of LNG
Energy & Power Ltd
“Excellent discussions on the high impact issues.” Emerging Technology Lead
Michael Harbeson, Conoco Phillips HSE
FLNG Consultant
Plus in depth interactive pre conference workshop Norwegian Petroleum Society
Workshop: 24th Jan 09:00 – 12:00
What’s missing for the sanction of the first Floating Liquefaction Vessel? Senior Research Fellow
Energy and Power Ltd The Oxford Institute for
Energy Studies
Media Partners: Supported by: Sponsored by:
Telephone: Fax: Email: Visit:
+44 (0)20 7368 9300 +44 (0)20 7368 9301 enquire@iqpc.co.uk www.globalflngsummit.com
4. Workshop Day Monday 24th January 2011
Workshop 09.00 - 12.00 AM
What’s missing for the sanction of the first Floating
Liquefaction Vessel?
The industry has been studying floating liquefaction for the past 40 years and a lot of money has been
spent on engineering studies but still no sanctioned project. It has been mentioned that one company
alone has spent around $500 million to date on their concept but still no orders.
This workshop will summarise the current options on offer and then look at the issues that are likely
preventing approval of the first project.
Namely;
• The need for an economic solution that will generate a profit to stakeholders;
• The main technical issues and how they can be mitigated
• The main commercial issues and how they can be addressed
• The need to comply with the project development ‘gated’ process for smooth energy company
buy-in and approval;
• The project execution strategy to be adopted, particularly for new technology;
• The lessons learned from the recent successful floating storage and regasification projects and how
they could be
applied to benefit floating liquefaction projects;
Your workshop leader:
Brian Songhurst, Director LNG, Energy and Power
About Oil & Gas IQ
“The event brought together Become a member of Oil and Gas IQ and receive complimentary
resources that will keep you at the forefront of industry change, access
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their expertise.”
Steve Hamblett, RINA UK LTD
Telephone: Fax: Email: Visit:
+44 (0)20 7368 9300 +44 (0)20 7368 9301 enquire@iqpc.co.uk www.globalflngsummit.com
5. Conference Day One Tuesday 25th January 2011
08:30 Registration and welcome coffee 12:30 Extracting stranded gas - new approaches
• earn what developments have been made in other regions
L
09:00 Chairman’s opening remarks • ear how cutting edge technology is opening up new opportunities
H
• stablish what progress still needs to be made to make capitalising
E
09:15 The outlook for global gas: Setting the context on remaining pockets a reality
for FLNG For speaker updates visit www.globalflngsummit.com
• Understand the ‘Supply Glut’; its scale, duration and impact on your business
• Find out how post recession supply and demand fundamentals will effect 13:15 Lunch and Networking Break
your business
• Develop a clear understanding of the World’s future LNG needs
• Assess the challenges and opportunities for FLNG and you can deal with them Technical Focus Sessions
Howard Rogers
Senior Research Fellow 14:15 Tandem and side-by-side transfer, evaluate
Oxford Institute of Energy Studies the merits of each approach
• ow to operate in varying climactic conditions
H
• aximise the effectiveness of cryogenic flexible hosing
M
10:00 Speed Networking Ice Breaker Session • erfect deployment and connection methods
P
Short-list your top business partners and form essential contacts. Captain Mark K. Lane
You will have the opportunity to exchange details with every member Senior Vice President - Operations
of the delegate audience- so that you have already identified your Excelerate Energy L.P.
business prospects as the Summit gets underway
15.00 Adoption of new technologies for floating LNG;
The development of a LNG Test and Technology
10:45 Centre:
• nderstanding the Technology development needs for floating LNG
U
production, regasification and small scale supply
Session details to follow • mploy testing and modelling within LNG to validate safety and reliability
E
Baker Botts of new technologies and equipment
• ear what lessons have been learned from testing and qualification of
H
11:15 Coffee and networking break LNG transfer hoses
Bas van den Beemt
11:45 FLNG Beyond the Hype – Discover the latest Business developer Oil and Gas
TNO Science and Industry
developments in FLNG technology
• View the concepts currently on offer for floating liquefaction 15:45 Coffee and networking break
• Hear where the first FLNG projects are likely to be located
• hat tangible successes have been achieved to date in the development
W 16:30 Optimise your FLNG powering solution and
of FLNG? service operation
• earn from successful FSRU projects and the elements that can be
L •
Ensure an effective synergy between your core product and system
transferred to planned LNG-FPSOs •
Devise a dynamic maintenance plan
• stablish the crucial steps that need to be taken to accelerate the first
E •
Explore the latest technology solutions
floating liquefaction project Alexandre Eykerman
Brian Songhurst Sales Director Ship Power
Director LNG Wärtsilä Switzerland
Energy and Power
17:15 Chairman’s summary and close of conference day one
* Subject to final confirmation
“It was good to hear the opinion
of the variouselements of the
LNG-FSPOvalue chain”
Arata Nakamura, Inpex Corporation
Telephone: Fax: Email: Visit:
+44 (0)20 7368 9300 +44 (0)20 7368 9301 enquire@iqpc.co.uk www.globalflngsummit.com
6. Conference Day Two Wednesday 26th January 2011
08:30 Registration and welcome coffee 13:45 Problem Solving Session Conversion of existing
09:00 Chairman’s opening remarks
LNG Ships
• conversion a viable alternative to building an FLNG facility from
Is
scratch?
09:15 Ship based regasification - from the regulator’s • out if your existing infrastructure can successfully accommodate
Find
perspective necessary topside facilities
• ind our how LNG imports contribute to UK energy mix
F •
What potential challenges could conversion create?
• ear about the UK regulator’s experience in shore-side regasification
H
Chris Spilsbury
and in LNG imports from ships
Engineering Consultant
• Establish how the increasing interest in ship-based regasification is
BG Group*
proving to be a challenging development
• dentify how responsible regulators assess the hazards, risks and
I
necessary responses to enable the safe introduction and expansion
14.30 Unconventional LNG - Changing the shape
of this process into the UK of the business
• dentify the key success factors for unconventional LNG projects
I
Taff Powell
• hat insights can we learn from CSG LNG for FLNG?
W
Emerging Technologies Lead
• ow much of a role will FLNG play in future Global LNG Business?
H
HSE
Giles Farrer
Analyst - Global LNG
10:00 Panel Session - FLNG Risk Mitigation Wood Mackenzie
• ind out to perform risk assessments associated with using new
F
technology before its implementation 15:15 Coffee and networking break
• Discover the pitfalls of being part of the first wave of operators
of FLNG facilities 15:45 Panel Discussion and Open Floor Interactive
• Balance the pros and cons so that you can decide if the risk is justifiable
Session: Creating the business case for FLNG
Taff Powell In roundtables – use the knowledge and opinions gathered over the last
Emerging Technologies Lead two days to inform the creation of a business case for FLNG. Each group
HSE will need to identify…
William Wayne • he possible risks to be mitigated
T
General Manager • ajor costs to be covered
M
SIGGTO • he overall financial justification for investment
T
Nicholas Jones
10:45 Coffee and networking break Concept Development Manager
FLEX LNG
11:15 Chatham House Rules Frederic Venner
A closed session where you can discuss those sensitive and burning Vice President LNG Marine Operations
issues. This will be an Audio Visual free session in which everything that E.ON*
is said is off the record. Questions collected from the networking sessions Captain Mark Lane
on day 1 will be put to the group and answered with complete anonymity. Vice President of Operations
A perfect opportunity to voice that controversial theory! Excellerate Energy
12:00 Problem Solving Session – Financing
16:30 Wrap-up session: Looking forward –
• alculate the realistic costs associated with putting an FLNG ship
C what’s next for the industry?
into operation •
Move forward by taking account of history and ascertaining the timelines
• hould banks or other investors be approached to raise capital?
S that applied to early LNG projects and FPSO projects
• ow much risk can be mitigated by spreading financing options?
H • s projects begin to ascertain what the next challenge will be as
A
companies look past the FEED stage
For speaker updates visit www.globalflngsummit.com
• e ready to deal with the operation specific risks with practical steps
B
to address them
12.45 Lunch and networking break
17:15 Chairman’s summary and close of main conference
* Subject to final confirmation
Who should attend • Director of FLNG • Vice President Offshore • Vice-President Gas
the Global FLNG • Head of LNG • Naval Architects • Emerging Technologies
Lead
Summit? • Business Development
Manager
• Senior Project Manager
Telephone: Fax: Email: Visit:
+44 (0)20 7368 9300 +44 (0)20 7368 9301 enquire@iqpc.co.uk www.globalflngsummit.com
7. GLOBAL
FLOATING LNG
SUMMIT 2011
The Developing World of FLNG
Company: Shell/Statoil Company: Shell Company: Petronas Company: Shell
Field: Nnwa Doro Field: NEMed Location: Offshore Field: Prelude
Location: Offshore Nigeria Location: Offshore Egypt Malaysia Location: Browse Basin,
Australia
Company: Inpex
Field: Abadi
Size: 10 TCF
Location: Offshore Indonesia
Company: Teekay, ML
Field: Kitimat Company: Talisman
Location: Offshore Canada Field: Pandora, Rift
Location: PNG
Company: BG
Field: Block 5c
Size: 1.5 TCF Company: Woodside
Location: Offshore Trinidad Field: Sunrise
Location: Timor Sea
Company: Petrobras
Field: Tupi and Guara
Location: Pre-salt
discoveries, offshore Brazil Company: FLEX LNG
Field: Chuditch, Bilby, Wombat
Location: Timor Sea
Company: Ophir
Field: Lykos and Fortuna
Size: 1.5 TCF - 3TCF Company: Tullow Oil Company: PTTEP Company: GDF Suez
Location: Offshore Equatorial Field: Kudu Field: Coogee, Cash, and Santos
Guinea Location: Offshore
Namibia
Maple
Location: Timor Sea
Field: Petrel, Tern and
Frigate Potential FLNG
Location: Bonaparte
Basin, Australia
Projects as of 2009
Why is this THE ONLY FLNG Summit you need Maximise Your Involvement:
Sponsorship and Exhibition Opportunities
to attend this year? The Global Floating LNG Summit 2011 will provide you with the
unique opportunity to profile the solutions that operators are looking
• Operator led case studies and discussion for. By sponsoring you will gain invaluable face-face exposure with
the key decision makers over a prolonged period. This event is the
• Insight on the only FLNG projects on the market right now perfect opportunity to promote your services in an environment that
is both business and information orientated it is the perfect setting
for social interaction and networking. A focus on getting you direct
•Cutting edge analysis on optimum FLNG vessel design access to the key decision makers across leading organisations will
and technology solutions ensure that your investment is well placed. We understand that the
needs of all our sponsors and exhibitors will differ. That’s why we
don’t limit you to specific packages. For more information contact
• Implementation strategies for successful FLNG projects Marija Pocekutova on 0207 368 9778 or email her at
sponsorship@iqpc.co.uk and she will be able to tailor make
• Meet global decision makers and key solution providers a package suited to your company’s strategies and needs.
Telephone: Fax: Email: Visit:
+44 (0)20 7368 9300 +44 (0)20 7368 9301 enquire@iqpc.co.uk www.globalflngsummit.com
