Transborders, Japan's Kyushu Plan FLNG off Oz

Australia’s Transborders Energy has entered into a joint study agreement with Japan’s Kyushu Electric Power and its affiliate Kyushu Electric Australia to develop a floating LNG (FLNG) solution that will be deployed on a range of stranded gas fields offshore Australia, it said June 17.

“Transborders’ goal is to unlock stranded gas resources, develop a new LNG supply source, and offer alternative LNG solutions. Participation by major Japanese utilities as strategic partners, such as Kyushu, in the joint study endorse and add significant value to our FLNG solution,” Transborders chairman Jack Sato said.

The two companies will conduct technical pre-Feed with Transborders’ strategic partners TechnipFMC and Norway’s Add Energy; pre-negotiate key commercial terms of the FLNG solution; and pursue the deployment of the FLNG solution on stranded gas resource opportunities.

Based on this joint study agreement, Transborders has executed relevant agreements with TechnipFMC and Add Energy to commence the technical pre-Feed work. MODEC Management Services plans to give support to the pre-Feed work as operational advisor, Transborders said.

Upon completion of the FLNG solution development work in 2019, Transborders will be in a position to convert a range of stranded gas resources into ‘project sanction ready’ state within 24 months after FLNG deployment, while also allowing LNG buyers access to competitive LNG supply sources, it said.