FLNG –

OPPORTUNITIES

FOR AUSTRALIA

JEANETTE ROBERTS

AOG 2015

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FLNG – OPPORTUNITIES FOR

AUSTRALIA

Topics to be covered today include:

• Why FLNG for Australia

• Technical innovations

• Collaboration

• FLNG training

• Supply chain

• Path forward

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WHY FLNG FOR AUSTRALIA

FLNG is suited to Australia for a number of

reasons:

• Australia has large, undeveloped gas fields

offshore north-western Australia

• Many of these fields are located far offshore,

remote from any existing infrastructure

• The local market for gas in WA and NT is relatively

small

• Generally commercialisation of large gas fields is

achieved via LNG

• FLNG enables facilities to be located in the field,

minimising the environmental impact and overall

complexity of the development.

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FLNG

FLNG is a new technology to provide an

LNG liquefaction facility on board a floating

hull

Gas is liquefied to a final LNG product

LNG product is stored in the vessel hull and offloaded to

export tankers

Other products such as condensate and LPG may also be

produced

30.07.10

FLNG

FLNG topsides are far more complex than traditional FPSO

topsides

FLNG is an attractive development solution for fields where

limited infrastructure is available

The environmental footprint of an FLNG development is

significantly less than an onshore FLNG liquefaction plant

where offshore facilities, pipeline and shore crossing all

create an environmental impact.

TECHNICAL

INNOVATIONS

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FLNG

Topsides facilities are far more

complex than most offshore

facilities

Topsides may include boilers

and fractionation columns,

equipment that is not normally

included on an offshore facility.

Small scale FLNG solutions are

currently being developed

Some operators are offering

leased FLNG facilities, similar to

leased FPSOs.

OPERATING

EXPERIENCE

FLNG projects will give Australia experience in operating:

• The world’s largest floating facility

• In a cyclone area

• Very remote

• With equipment not normally seen on an offshore facility:

• Boilers and steam system

• Fractionation

• Cryogenics

How do we export this experience?

We need to identify, define and market this experience.

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REMOTE OPERATION

FLNG will entail operating a

complex offshore facility in a very

remote area

• What opportunities does this

present?

FLNG is a learning curve for all

personnel

Technology enables us to support

the offshore team with expert

skills

• To enable better decision making

• To establish protocols and

decision making for emergency

response and major incidents

In WA the mining industry has well developed technology for remote operation.

• Development of technology to support remote operation of FLNG vessels will be a key technical innovation

• We need to recognise this innovation and look for opportunities to export these skills.

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PRODUCT

OFFLOADING

Product offloading from an FLNG vessel requires development of

offloading technology in a number of areas:

• Offloading of multiple products – LNG, condensate, LPG etc

• Both side-by-side and tandem offloading

• Side-by-side offloading from a floating facility that is:

• Larger than any FPSO

• Located in a cyclone region

• Including very complex processing facilities

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EXECUTION OF MEGA-

PROJECTS

Australia is currently constructing 7 new greenfield LNG projects

All of these are extremely large and complex mega-projects,

global by any scale.

As a result, we have developed expertise in:

• Very large project execution

• Construction in very remote areas

• Logistics and supply chain

• Quarantine and environmental management

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COLLABORATION

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COLLABORATION

OPPORTUNITIES

Taking advantage of this FLNG opportunity requires

collaboration between all stakeholders:

•Global centre for FLNG Learning and Research

• Established in 2011 between Shell, Curtin University and

ACEPT

•Centre for Offshore Foundation Systems

•WA Energy Research Alliance

•Floating Systems Centre

•Oil and Gas Centre of Excellence

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FLOATING SYSTEMS CENTRE Concept development and progress

• Concept development by WA:ERA partners (UWA, Curtin, CSIRO) in early

2013 at LNG 17 - strong consultative process with industry and stakeholders

• Expressions of support from major operators, service providers, industry bodies including APPEA, Engineers Australia, SPE, SUT, SEA, regulators

• Potential link to an Australian Government funded Industry Growth Centre

for Oil, Gas & Energy Resources that is to have an industry-led board

o Prospective Government-Industry-Research co-investment

• Australian Government supported WA:ERA scoping work and remains supportive

• With a Floating Systems Centre, experience and technology can be shared,

covering R&D, training, operations and maintenance, resulting in wider

collaboration and the opportunity to develop even better technology

solutions across a wider group of participants and services exports.

FLOATING SYSTEMS CENTRE Objectives and potential outcomes

• To open up opportunities to collaborate and enable companies in Australia

and globally to better manage uncertainty and costs related to next-

generation off-shore projects –> floating systems and FLNG

• Focus world-class expertise on addressing industry challenges

o Unlock export potential of Australia’s vast off-shore oil and gas

resources with targeted solutions to Australia’s unique production

challenges.

• Build high-value capability and skills

o Training a skilled workforce

o Attracting globally leading engineering, technical and environmental

service companies to Australia or transfer knowledge and technology

• Leverage Australia’s first mover advantage and investments in FLNG

• Build up competitiveness in offshore projects and increase LNG exports

• Streamline regulatory approvals, underpin safety and environmentally

sustainable operations by understanding, monitoring and mitigating risk.

4. SOCIO-ECONOMIC,HUMAN,

SAFETY & ENVIRONMENTAL IMPACT Productivity and commercial viability

Safety and Human Factors

Economics, Law and Regulation Environment

Operational

optimisation

of offshore

systems

3. OFFSHORE ASSET

MANAGEMENT & OPERATIONS Remote operations & comms

Asset integrity

Operations optimisation

Risk management

2. OFFSHORE PRODUCTION

ENGINEERING Gas processing of floating structures

Flow assurance subsea

Subsea processing

Water and waste management

1. OFFSHORE ENGINEERING Metocean

Offshore structures

Offshore hydraulics

Offshore geotechnics

LNG offloading

Logistics &

maintenance

optimisation

Productivity

Industry Issues

• Metocean forecasting and modelling, weather, currents, wave, cyclone

conditions knowledge

• Anchoring and mooring • Offloading

• Sloshing

Industry Issues

• Collaborative working with multiple vessels • Understanding changing economics of LNG

• Adequacy of data for regulatory approvals

• Environmental, safety standards, regulations • Economic forecasting, modelling

• Training/skills development incl. project mgt • Social licence Industry Issues

• Remote operations and communications • Asset integrity

• Operations optimisation

• Risk management

Industry Issues

• Flow assurance, hydrates management, cooling water systems

• Scalability, miniaturisation

• Subsea compression/processing • CO2 management

• Water treatment

SPECIFIC RESEARCH AREAS Where research expertise is aligned with industry priorities

FLNG

TRAINING

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World-first FLNG training at ACEPT

Global Centre of excellence in FLNG learning & research

Challenger Institute & Curtin University lead consortium partners

Shell first partnership contracting FLNG education, training & research services

Shell invested in training ACEPT staff to enable them to train in this new technology

World-first FLNG training at ACEPT

Currently consulting industry as to what equipment and software will best serve the LNG/FLNG markets

ACEPT well placed to offer similar services to other companies requiring customised LNG / FLNG training

ACEPT and Maritime divisions blend both the process and marine aspects of FLNG

ACEPT for the Future

Remote access to simulation and physical training infrastructure

High level technical training – applied engineering, instrumentation and control

SUPPLY

CHAIN

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SUPPLY CHAIN

OPPORTUNITIES

Use the current FLNG developments as a test case

•Map the supply chain

•Identify opportunities for Australian suppliers:

• Suppliers’ current capability

• Gap analysis

• Supplier development required to fill those gaps

• Implement a (resourced) action plan to achieve that development

We already have the Entrepreneurs’ Infrastructure Programme and other initiatives to help suppliers.

• Support and develop these programmes

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PATH

FORWARD

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HOW DO WE TAKE ADVANTAGE

OF THIS OPPORTUNITY?

Australia is in a unique position to take this FLNG operating experience into technology development and innovation

Elements of the technology are proven,

• but not on this scale

• with remoteness and cyclones

The integration is unique

Opportunities for:

• Fundamental research

• Incremental research

Both are valuable

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OPPORTUNITIES FOR

AUSTRALIA

• Perhaps more questions than answers

• But let’s intensify the conversation

• Let’s ensure we don’t miss this opportunity

None of this will happen without resources:

• People

• Funding

• Focus

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Strategic Energy Insights