Project Spotlight: Delfin LNG: An Innovative Approach to FLNG [LNG Condensed]
Delfin believes that 13mn metric tons/ year of LNG capacity can be built for $7-$8bn, which if realised, would bring the project in at the low end of LNG plant project costs. According to the Oxford Institute for Energy Studies, LNG plant costs fell from highs of $2,000/mt/yr of production capacity in 2010- 2014 to between $600-$1,400/mt/yr in 2014-2018, in part the result of industry innovation, but also reflecting the general fall in capital costs for oil and gas projects in this period.
DELFIN’S LOW COST REFLECTS THREE MAIN FACTORS.
First, upstream costs are low because gas will be sourced from the US pipeline system. The gas will be brought about 50 miles out into the Gulf of Mexico off the Louisiana shoreline by the existing Enbridge Offshore Pipelines System (UTOS). UTOS was built in 1978 to take oil and gas onshore, but was abandoned in 2011. Delfin LNG bought UTOS from Enbridge in 2014.
Onshore the pipe had connections to interstate pipeline systems such as Transcontinental Pipeline, Natural Gas Pipeline Company of America and ANR Pipeline Company. Delfi n will need to reinstate these connections, build a compressor station at UTOS’s landing point and carry out other work to reverse the direction of flow. (continues)
Full article in LNG Condensed Volume 1, Issue 4 - April 2019 - Sign Up Free below and never miss an issue:
In this Issue:
> Sanctions loom over Russian LNG
> Editorial: Off Message in Shanghai
> Feature: Natural gas and the hydrogen economy
> Feature: South Korean LNG set for growth
> Country focus: Colombia: an uncertain market for LNG
> Project spotlight: Delfin LNG: an innovative approach to FLNG and more!
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