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SBM signs partnership agreement for development of FLNG in Timor Sea

LNG Industry,

SBM Offshore, The Linde Group’s Engineering Division, PTT FLNG Limited and PTTEP Australasia have signed a partnership agreement for the development of an FLNG facility in the Timor Sea off Northern Australia.

The project foresees floating production of LNG from three gas field groups including Cash-Maple, Southern and Oliver fields, offshore Australia. Preliminary studies commenced in March 2011 and the project will continue into a Front-End Engineering and Design (FEED) phase by the end of 2011 if gas reserves appraisal continues to meet expectations. The final investment decision is targeted for end 2012, and first commercial FLNG operations for end 2016.

The facility will be located approximately 680 km west of Darwin, Australia, and 200 km southeast of the Indonesian coastline. The plant will have the capacity to produce approximately two million tonnes of LNG per annum.

SBM Offshore will contribute its mooring system technology, its marine expertise and also be involved in the gas processing on the FLNG topsides. Floating LNG technology is innovative and enables offshore gas fields to be developed that would otherwise be uneconomical and /or technically challenging.

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