Page 50 - Oil&Gas-AustralAsia-2015-Issue-3
P. 50
S INGAPORE
What is the Future of the FLNG Market?
One of the most keenly discussed short term, those projects will still be vations, even today, where a company
topics at the FLNG World Con- on hold, but the larger development will start off with a mid-scale approach
gress 2015 was the mid to long- projects and the mid-screen, mid-size and then begin focusing on the small-
term outlook for the market. projects, we don’t see those being terri- scale approach instead. Then there also
Whilst many experts predict a bly effected going forward.” is an issue regarding the demand for
period of stagnation in the short- FLNG. As much as we see the demand,
term, this will force market players a lot of the feed work is leading to diffi-
to pause and adapt their strategies culties in making investment decisions
in order to learn from the techno- because of the total cost.”
logical and financial effectiveness
upcoming projects. To learn more,
we asked the FLNG experts at the
Congress their views on the future
of the market, here’s what they
said:
“I think, the current environment will - Rohn Shelton, Senior Interface - Arun Duggal, Director of Research
create some heavy debates regarding Manager, FLNG Projects, Offshore and and Development, SOFEC
problems and decision making. I think Module Group, JGC Corporation “I think the FLNG market is splitting
it will lead to more studies and maybe “The tipping point in the growth of the into large-scale projects on the one
doing re-FEEDs, rather than immedi- FPSO industry was the moment that hand and small to mid-scale projects
ately going to FIDs. I think we are going lease-and-operate solutions reached on the other. Regarding new build and
to see a period of a couple of years the market. Although FLNGs are more conversions, we’ve heard to date a lot of
where people consider the following complex and history does not repeat talk about conversions being potentially
things, firstly whether the market itself, I still believe that when the a cost-effective way to go, but we have
gradually will turn again and secondly, first FLNGs have been proven from a still to be convinced that they are going
see how supply and demand evolves be- commercial basis, more independents to be really effective in operations.
cause there are some uncertainties there and midcaps will look at it as a viable Certainly what Golar is trying to do
as well. Then thirdly, people will see development option. At that time, is interesting and exciting, but we’re
that there are specific opportunities for lease-and-operate solutions will be pre- hanging back and seeing how that turns
floating liquifaction. I expect this will ferred, and I think that’s where FPSO out for them.”
lead to more focus in regards to where operators like Bumi Armada will have a
you can compete with floating liquefac- strong role to play.”
tion, compared to onshore liquefaction
developments.”
- Rene Van Vliet, Chief Project Officer, - Luc Pescio, VP for Floating Gas Solu- - Stephen Thompson, LNG and Natural
NEXTDECADE tions, Bumi Armada Gas Manager, Poten & Partners Australia§
“I believe that there’s been some stagna- “I think the market is going to be slow,
tion within the FLNG industry. We’ve companies are still finding the niche
certainly seen projects put on hold, they want to be in. You’ve seen preser-
we’ve seen projects cancelled. What we
believe will happen is that in the very
A A48 OIL & GAS ustral SIA JULY/AUGUST 2015 www.oilandgasaustralasia.com
What is the Future of the FLNG Market?
One of the most keenly discussed short term, those projects will still be vations, even today, where a company
topics at the FLNG World Con- on hold, but the larger development will start off with a mid-scale approach
gress 2015 was the mid to long- projects and the mid-screen, mid-size and then begin focusing on the small-
term outlook for the market. projects, we don’t see those being terri- scale approach instead. Then there also
Whilst many experts predict a bly effected going forward.” is an issue regarding the demand for
period of stagnation in the short- FLNG. As much as we see the demand,
term, this will force market players a lot of the feed work is leading to diffi-
to pause and adapt their strategies culties in making investment decisions
in order to learn from the techno- because of the total cost.”
logical and financial effectiveness
upcoming projects. To learn more,
we asked the FLNG experts at the
Congress their views on the future
of the market, here’s what they
said:
“I think, the current environment will - Rohn Shelton, Senior Interface - Arun Duggal, Director of Research
create some heavy debates regarding Manager, FLNG Projects, Offshore and and Development, SOFEC
problems and decision making. I think Module Group, JGC Corporation “I think the FLNG market is splitting
it will lead to more studies and maybe “The tipping point in the growth of the into large-scale projects on the one
doing re-FEEDs, rather than immedi- FPSO industry was the moment that hand and small to mid-scale projects
ately going to FIDs. I think we are going lease-and-operate solutions reached on the other. Regarding new build and
to see a period of a couple of years the market. Although FLNGs are more conversions, we’ve heard to date a lot of
where people consider the following complex and history does not repeat talk about conversions being potentially
things, firstly whether the market itself, I still believe that when the a cost-effective way to go, but we have
gradually will turn again and secondly, first FLNGs have been proven from a still to be convinced that they are going
see how supply and demand evolves be- commercial basis, more independents to be really effective in operations.
cause there are some uncertainties there and midcaps will look at it as a viable Certainly what Golar is trying to do
as well. Then thirdly, people will see development option. At that time, is interesting and exciting, but we’re
that there are specific opportunities for lease-and-operate solutions will be pre- hanging back and seeing how that turns
floating liquifaction. I expect this will ferred, and I think that’s where FPSO out for them.”
lead to more focus in regards to where operators like Bumi Armada will have a
you can compete with floating liquefac- strong role to play.”
tion, compared to onshore liquefaction
developments.”
- Rene Van Vliet, Chief Project Officer, - Luc Pescio, VP for Floating Gas Solu- - Stephen Thompson, LNG and Natural
NEXTDECADE tions, Bumi Armada Gas Manager, Poten & Partners Australia§
“I believe that there’s been some stagna- “I think the market is going to be slow,
tion within the FLNG industry. We’ve companies are still finding the niche
certainly seen projects put on hold, they want to be in. You’ve seen preser-
we’ve seen projects cancelled. What we
believe will happen is that in the very
A A48 OIL & GAS ustral SIA JULY/AUGUST 2015 www.oilandgasaustralasia.com
