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Japanese utility joins small scale FLNG study

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LNG Industry,

According to Reuters, Japanese company Kyushu Electric Power Co. has agreed to support a study that will look into the production of LNG using floating LNG vessels at small, remote gas fields offshore Australia, which otherwise would remain untapped.

According to Reuters, the project will look to tap into small gas fields, with reserves of around 0.5 trillion ft3 – 2 trillion ft3.

Reuters reports that planning is still at an early stage. The consortium, led by Transborders Energy (Perth, Australia), is aiming to reach first production in mid-2026 at the earliest, with capital costs reportedly around AUS$1.6 billion.

According to Reuters, the Australian company is hoping to finalise the preliminary design work on small scale FLNG vessels with TechnipFMC and Add Energy by the end of this year. It is also aiming to complete talks with potential owners of stranded gas resources by the same point.

Transborders Managing Director, Daein Cha, claimed that bringing Kyushu on board as a partner was crucial. This is because the Japanese utility could be a customer for the LNG, and help the project secure access to low-cost debt finance from the Japan Bank for International Cooperation (JBIC).

Reuters quote Cha as saying: “That enhances our relative competitiveness and cost-effectiveness when compared to other projects.”

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Australia LNG news Offshore LNG news Natural gas news


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