2. WHY CHINA IS SUCH AN IMPORTANT PLACE TO ORGANIZE THIS FORUM!
REMEMBER
ZHENG HE SAILED FROM CHINA TO SOUTH
PACIFIC, INDIAN OCEAN, AFRICA, PERSIAN
GULF IN 7 EPIC VOYAGE FROM 1405 TO 1433
(SOME 80 YEARS BEFORE COLUMBUS VOYAGE)
CONSTRUCTED SOME OF THE LARGEST SHIPS
IN NANJING – 3 SHIPYARDS STILL EXIST!
4. WHY CHINA CAN BECOME WORLD LEADER IN THE FLNG BUSINESS!
LABOR WORK FORCE – NEED MILLIONS OF
MANHOURS OF WORK TO BUILD FLNG
COST OF LABOR IN CHINA MANY TIMES
LESS AS COMPARED TO EUROPE / USA
NEED LARGE SHIPYARDS
NEED LARGE CONSUMER DEMAND TO
INVEST
,
NEED LARGE RESOURCES MATERIAL,
STEEL, MONEY, MANAGEMENT & MAINLY
MANPOWER
NEED GROWING ECONOMY WITH FUNDS
WILLING TO INVEST
5. CURRENT SCENARIO………LNG MARKET PERSPECTIVE
SEVERAL NEW LNG TERMINALS WILL START BETWEEN NOW AND 2012 BUT MANY PROPOSED LNG
PRODUCTION CAPACITY IS NOT LIKELY TO MATERIALIZE
LACK OF INVESTMENT IN NEW LNG PRODUCTION DUE TO ESCALATING PLANT COST AND FINANCIAL
MELTDOWN
SHORTAGE OF LARGE GAS FIELDS NEAR SHORE & LACK OF SUITABLE PLANT SITE
LEADING LNG PRODUCING NATIONS HV DECLARED MORATORIUM TO USE FOR DOMESTIC PURPOSE ONLY
OPERATION OF CURRENT LNG CARRIERS ARE AT RECORD LEVELS
INCREASING DEMAND FOR LNG & SHORTAGE OF GAS LIKELY
TYP. US LNG IMPORT FORECAST…..
SHORTFALL OF 150 MILLION TPY OF LNG EXPECTED
BY 2012 WORLDWIDE
THERE ARE SEVERAL HUNDREDS “STRANDED” NAT
STRANDED
GAS FIELDS IN THE WORLD TO SUPPORT 1MTPY LNG
PLANT FOR NEXT 10 YEARS OR MORE
100’S OF PROSPECTIVE FLNG PLANTS IN RANGE OF 1
MTPY IDENTIFIED
EACH PLANT WILL BE 2 to 3 BILLION $+ INVESTMENT
$
HENCE MORE THEN 100 BILLION $ INVESTMENT
EXPECTED
6. ISSUES FOR FLNG…….
There are a number of issues that need to be carefully examined when considering
a floating LNG facility
a floating LNG facility
• Location & sea condition
• Survival in storm conditions
• Ensuring smooth facility operation in motion & rough sea
E i h f ili i i i & h
• Suitable sites having available large quantity of Gas which can be trapped subsea
• Availability of skilled manpower to build & operate, material and equipments /
package modules suitable for operation in marine environment, suppliers,
Certifying agency…..
y g
• Whether we really need such huge FLNG terminals or whether a smaller version
can be more productive and economical
• Access for export / import vessels (tugs & pilotage)
• Type of plant, liquefaction / regasification
• Type of plant liquefaction / regasification
• Type of vessel & containment
• Mooring of the facility
• Method of transfer of cargo
M th d f t f f
• Deck congestion
7. DIFFERENT PARTNERSHIP POSSIBLE RELATED TO FLNG – NEEDS A STRATEGY &
VISION TO DEVELOP A SUCCESSFUL PROJECT BENEFITING ALL STAKEHOLDERS
(A) (B) (C) (D)
GAS SUPPLIER GAS TRADING CO.
CO LNG SHIPPING CO
CO. LNG BUYER
(J) (E)
(H)
LIQUEFACTION AND
SHIP BUILDER (YARD)
STORAGE SERVICE LNG USER (POWER
(
PLANT COMPANY)
Leasing arrangement
(K) (G) (daily rate basis)
(d il b i) (I)
LIQUEFACTION PLANT OPERATING COMPANY
MODULE SUPPLIER
OWNER
(L)
(F) EPCIC contract – LumpSum
p
OTHER CONTRACTOR TurnKey (LSTK)
LIQUEFACTION PLANT
& SUPPLIER
EPC CONTRACTOR
19. LET US BEGIN THE FLNG FORUM WITH A PRAYER!
SINCE 1000’S OF YEARS, IT IS CUSTOMARY TO BEGIN SUCH
GATHERING BY INVOKING A PRAYER & BLESSING. IN THIS PRAYER
WE SEEK LORD’S BLESSINGS FOR A GROUP STUDY THAT IS FREE
LORD S
OF OBSTACLES CARRIED OUT WITH HEALTHY MIND & BODY WITH
CONCENTRATION IN A CONDUCIVE ENVIRONMENT WITH EASY
COMMUNICATION FREE OF ARGUMENTS & HATRED.
OM PEACE PEACE PEACE