LETTERS | Comment on FLNG unit differences

Prelude FLNG (Photo: Shell)
Prelude FLNG (Photo: Shell)
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Dear Hieronymus Bosch,

Your recent article on FLNG was certainly appreciated with some good reminders how FLNG can be attractive and delivered at low-cost despite the Prelude experiences.

One thing that we are missing though is to highlight difference between a wellstream producing FLNG and an FLNG receiving pipeline quality gas from natural gas pipeline. Prelude, Coral, PFLNG are all "LNG FPSOs", whereas Hilli, Gimi, Tango and our Delfin vessels are just liquefiers. The latter lends itself better for standardised solutions and unit costs of less than US$500/tpa (for the vessel alone).

Unfortunately you're quoting an old reference from SPE and Westwood, which are completely wrong with respect to the cost figures for the Delfin LNG project. Delfin can execute the project for a total capital cost of around 550 $/tpa.

Wouter Pastoor

Chief Operating Officer

Delfin Midstream

Oslo, Norway

Hieronymus Bosch responds:

Good to get the feedback. Wouter is correct that there is a difference between Perenco's Hilli unit and the ENI, Shell and Petronas units, but the article was very long already and I admit that I skipped that difference in the interests of brevity.

There's also the cost of the platform to process the gas before it arrives at the liquification vessel,and the pipeline to transport it the unit,  which increases the overall cost per unit exported above the US$500/tpa he mentions for his Delfin project.

Good points though, and I am glad that there are happy and attentive readers out there!

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