These FLNG models can place further strain on traditional project development sequencing. However, unconventional project sequencing also creates new risk dynamics. For example, there may be a disproportionate distribution of liabilities and value between stakeholders. Or, workstreams may become disaggregated such that actions and commitments in just one part of the value chain hinder a successful integrated project.
FLNG has undoubtedly encouraged broad innovation and has lowered barriers to entry to the LNG industry, inviting bold players with a fresh attitude to project development sequencing. Get in touch to discuss Gas Strategies’ FLNG project development support.
Highlights
- Where liquefaction projects deploy floating LNG (FLNG), development schedules are increasingly departing from the sequential approach seen historically as established practice in onshore projects. In FLNG, the procurement of vessels and long-lead items as well as the award of engineering, procurement and construction(EPC) contracts often occurs without recognising traditional project milestones.
- FLNG technology has derisked construction and is enabling compressed development timelines through standardised modular designs, redeployment optionality and new business models, placing further strain on traditional project development sequencing.
- However, unconventional project sequencing also creates new risk dynamics. For example, there may be a disproportionate distribution of liabilities and value between stakeholders. Or, workstreams may become disaggregated such that actions and commitments in just one part of the value chain hinder a successful integrated project.
FLNG project developers are increasingly pursuing non-standard project development schedules reflecting the flexibility inherent in the technology, a trend that reinforces the need for experienced FLNG project development support.
We are energy business consultants. Our people have stood in your shoes and continue to do so as advisors to a diverse range of LNG projects around the world, bringing understanding of the role and requirements of all stakeholders necessary to make a successful project development. Gas Strategies brings extensive FLNG project development support, having supported clients on seven FLNG projects, several of which have already reached FID and further engagement ‘in flight’.
Download our Perspective to see how developers are navigating new FLNG realities.
