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MELBOURNE / TOKYO (Reuters) – The Japanese company Kyushu Electric Power Co. has agreed to fund a study on the production of liquefied natural gas (LNG) using floating LNG vessels in small gas fields that are not would not be exploited off Australia, announced the project partners on Monday.
Planning is in its infancy, and the consortium, led by Transborders Energy, Perth, is targeting early production no earlier than mid-2026, with capital costs to be approximately $ 1.6 billion Australian. ($ 1.1 billion), said the general manager, Daein Cha. .
"Transborders' goal is to free up gas resources, develop a new source of LNG and provide alternative LNG solutions," said Transborders President Jack Sato in a statement.
Transborders hopes to complete preliminary design work on small-scale floating LNG with TechnipFMC and the Norwegian company Add Energy, as well as discussions with potential gas resource owners stranded by the end of the year.
It was essential to align Kyushu as a partner, as the Japanese supplier could be an LNG customer and help the project to secure access to low-cost debt financing by the Japan Bank for International Cooperation (JBIC). ).
"It improves our relative competitiveness and our profitability compared to other projects," Cha said.
The group is looking to exploit small gas deposits, with reserves ranging from 0.5 trillion cubic feet to 2 trillion cubic feet, which is similar to a small-scale FLNG project that Norway, Golar, has recently put in place. off Cameroon.
The Cameroon project, producing 2.4 million tonnes a year, costs about $ 1.2 billion.
On the other hand, Royal Dutch Shell's 3.6 million tonne Prelude FLNG project would have cost $ 17 billion.
Report from Sonali Paul to MELBOURNE and Aaron Sheldrick in TOKYO; edited by Christian Schmollinger
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