Lloyds Energy Limited (“Lloyds Energy”) announced today that it has signed a letter of intent with KBR-DSME joint venture, KDJV, for a front-end engineering and design/engineering, procurement, construction, installation and commissioning (FEED/EPCIC) contract for development of near-shore floating liquid natural gas (FLNG) facilities.
Lloyds Energy is a company formed to develop LNG liquefaction and export projects utilising near-shore Floating LNG (“FLNG technology with feedstock gas supplied from existing pipeline infrastructure.
Lloyds Energy’s first project will be a phased development comprising a near-shore mid-scale FLNG facility while assessing additional near-shore FLNG locations. The ultimate objective is to establish a program of multiple near-shore FLNG projects, based on one single and original design. Lloyd Energy’s near-shore FLNG technology would include the following facilities within its scope:
- Onshore reception facilities for export quality gas;
- Relatively short transportation gas pipeline ( < 5 kilometers) to connect the liquefaction host barge and storage facilities;
- LNG offloading facilities via loading arms located on a dedicated jetty; and
- Onshore maintenance facilities.
To lead, manage and implement the delivery of future near-shore FLNG projects, Lloyds Energy is building an internal team of FLNG specialists, many of whom have experience from the Prelude, Coral, and Bonaparte and Abadi FLNG developments.
Daewoo Shipbuilding and Marine Engineering Co., Ltd (“DSME”) Chief Business Officer, Jang Jin Kim stated: “the Lloyds Energy and KBR-DSME Consortium (“KD”) with the experienced professionals from all three companies, will create a winning team and provide innovative game changing concept to the LNG market in today’s Capex constrained industry.”
“One of the foremost EPCIC Contractors, DSME has become the front-runner in the FLNG business with considerable expertise in LNG related technologies. The world’s first FLNG named PFLNG SATU of Petronas has almost been completed and will sail away from DSME Okpo yard within a month, which enables to continually enhance our capabilities in FLNG business. DSME holds the dominant position in the LNG Carrier and FSRU markets by securing almost 40% of world market with a back log of 51 LNG carriers.
Moreover, DSME has provided a wide range of offshore oil and gas development projects to its valuable clients. As of 1Q 2016, DSME has successfully delivered more than 90 offshore projects and 1,100 commercial ships with 20 offshore projects and 105 commercial ships currently under construction.”
KBR’s President for E&C, Europe, Africa & Middle East, Jay Ibrahim stated:
“As a contractor with significant FLNG FEED experience across multiple global developments, we look forward to working with Lloyds Energy to successfully achieve their goal of developing strategically important near-shore FLNG projects across a range of locations.
“KBR is uniquely positioned in the LNG market as a contractor who can satisfy the needs of our LNG customers, regardless of the phase of a project. Our ability to design and manage projects, from concept through to construction and commissioning, underpins why we are the go-to LNG contractor across the industry and why KBR is responsible for one third of the world’s operating LNG capacity, across a range of locations globally,” continued Ibrahim.
Lloyds Energy CEO, Phil Holland, stated that “Lloyds Energy is extremely pleased to be working with KBR and DSME (KDJV) as all three companies have experienced FLNG teams with full asset-cycle exposure, from concept development through to long term asset management. DSME will imminently finish the construction of the world’s first FLNG (Petronas FLNG1). Mark Graham Lloyds Energy EVP Projects added that “we are confident that we have chosen the best contractors in the industry to support the development of our near-shore FLNG mid-scale project.”
Lloyds Energy President, Konstantinos Mitropoulos stated: Our vision at Lloyds Energy is to successfully deliver, through near-shore FLNG technology, a viable alternative to traditional and capital intensive onshore LNG developments.