Cott engages Wison to prepare FLNG concept study

Cott Oil and Gas Limited has received an Expression of Interest (EOI) from Wison Offshore and Marine Limited in supporting the development of the Pandora Gas Field with a floating LNG plant. As a result, Cott has engaged Wison to deliver a concept study for a FLNG that would be suitable for the project.

Pandora Gas Fields

Wison delivered an EOI to Cott, stating that it believed that the Pandora Gas Fields could be commercially developed using FLNG. Wison has experience in the design and manufacture of FLNG and regasification facilities after being awarded the EPCIC contract by Exmar for a floating LNG liquefaction and storage vessel.

The liquefaction barge, which has a capacity of 0.5 million tpa, is currently under construction at Wison’s Nantong shipyard in China. It is due to be complete by the end of 2014, and will then be delivered to the Caribbean LNG project off the coast of Colombia.

Caribbean FLNG

The Caribbean FLNG vessel is expected to cost between US$ 300 million and US$ 600 million per tonne per annum of liquefaction capacity. This cost is significantly lower than that of land-based LNG facilities, and is at the lower end of the capital cost reported for FLNG vessels.

With operating costs expected to be in the region of US$ 1.50 - US$ 2.00 per million ft³ of gas processed, an FLNG solution of this type could substantially lower the minimum economic size for a stranded gas resource. The majority of new projects under development are in the range of 1 - 1.5 million tpa and can be delivered within 3 years of FID. In addition to Wison’s Caribbean FLNG vessel, Petronas is in the process of constructing two mid-scale FLNG vessels.

FLNG concept study

Cott has engaged Wison to prepare a concept study for an FLNG facility that would be suitable for the Pandora gas fields. The study is expected to outline a potential FLNG concept that would be appropriate for the resource, location, gas composition and expected production rates of the Pandora gas field and to provide preliminary advice and recommendations on the following:

• Description of the pathway for development and evaluation of an FLNG concept
• Alternative concepts including new build and retro-fit
• Minimum storage requirements
• Sea states and mooring requirements
• Offloading options
• Gas pre-treatment and processing
• Support infrastructure and vessels
• Indicative capital costs and operating costs
• Financing options
• Economic viability of FLNG concept

Wison has recently opened Stage 1 of a second fabrication yard at Zhoushan, which will have nearly 2.3 km of coastline. The new fabrication yard is intended to provide Wison with the capacity to leverage its FLNG expertise and deliver much larger FLNG vessels.

The concept study is expected to be complete by the end of April 2014. A positive outcome from the study would enable the joint venture to commence pre-FEED (Front End Engineering and Design).

Comments

Cott managing director, Andrew Dimsey, commented: “We are delighted to have established a commercial relationship with Wison Offshore and Marine, one of the most dynamic and innovative engineering and construction groups in the oil and gas industry. Wison are using proven LNG and offshore technologies and a highly experienced offshore engineering management team with its own shipbuilding capacity. Wison’s Expression of Interest validates Cott’s view that the Pandora gas fields are suitable for stand-alone development using Floating LNG technology.”

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/floating-lng/12032014/wison_to_deliver_flng_concept_study_for_cott_275/