Dutch maritime engineering group SBM Offshore has signed a partnership agreement with Linde Group, PTT FLNG and PTTEP Australasia for the development of a floating liquefied natural gas (FLNG) facility in the Timor Sea. The facility will be located approximately 680 kilometres west of Darwin, Australia, and 200 kilometres south-east of the Indonesian coastline. The plant will have the capacity to produce approximately two million tonnes of LNG per year.
The project foresees floating production of LNG from three offshore gas-field groups including the Cash-Maple, Southern and Oliver fields. SBM Offshore will contribute its mooring system technology and also be involved in gas-processing. Floating LNG technology enables offshore gas fields to be developed that would otherwise be uneconomical or technically challenging.
Preliminary studies commenced in March, with a front-end engineering and design (FEED) phase to begin by the end of 2011 if the gas reserves appraisal continues to meet expectations. The final investment decision is targeted for the end of 2012, and commercial FLNG operations are expected to begin by the end of 2016. The partners plan to establish a special purpose company to jointly construct, finance, own and operate the FLNG, which will be contracted on a lease and operate basis to the upstream company operating the fields.