Floating LNG Production Plant for Papua New Guinea

Implications: Flex LNG was specifically formed as a "Floating LNG Producer" for developing stranded gas fields in underdeveloped areas.  Papua New Guinea (PNG) is one location where it appears to be a timely and economical solution to pipe stranded onshore gas to an offshore floating production and storage ship (FPSO).  Flex LNG and Rift Oil are planning to jointly develop and market Rift's stranded gas in the western highlands of PNG. 

Analysis: Flex LNG's FPSO allows the project to come on stream two years earlier than when developing an onshore liquefaction plant from scratch.  Flex LNG has two 90,000 cubic meter M-Flex (SPB IHI design) vessels on order at Samsung Heavy Industries (SHI) for delivery in 2010. There is sufficient time to install the onboard liquefaction plant and all other cryogenic process units to optimize LNG storage and transfer operations in order to meet a projected startup date of the project in 2012.  The LNG production is planned to be 1.5 million tonnes per year (200 million cubic feet per day).