8 exciting Asian FLNG, FPU and facility construction projects

May 31, 2019

Current fabrication projects on Asian shipyards

2019 and beyond looks to be an exciting time for the energy sector with multiple projects due for final investment decisions this year. This creates great opportunity for technical talent to progress their career on a variety of projects from early stage design to production.

8 FLNG, FPU and facility construction projects currently underway

  1. Coral
  2. Gorgon 2
  3. Golden Pass LNG
  4. Vito
  5. Mad Dog 2
  6. Tengizchevroil (TCO)
  7. LNG Canada
  8. Tyra

This blog is part two of a two-part series looking at ventures currently in the fabrication stage on Asian shipyards.

Click here to read part one on FPSO projects

Floating Liquified Natural Gas Projects

Liquefied natural gas (LNG) is a fast-growing major fuel source and demand is expected to double by 2035. Much of this growth will come from Asia as they transition away from coal. Airswift have been supporting some of the world’s largest LNG projects for over 20 years. Below are a few upcoming projects.

1. Coral

Discoveries of 85 trillion cubic feet of gas offshore could position Mozambique as a frontrunner to meet rising global LNG demand.

The Coral floating LNG (FLNG) vessel will be built in South Korea and Singapore. Once completed in 2021, it will set sail to the Rovuma Basin in Mozambique. The FLNG vessel will be 439m long by 65m wide and operate at a depth of 2,000m. It is expected to produce 3.4 million tonnes of LNG per annum.

2. Gorgon 2

The Gorgon and Janz-lo fields are home to Australia’s largest known gas resource. Expansion plans include new wells, offshore production pipelines and subsea structures to feed into the Gorgon LNG Terminal. Fabrication for the subsea infrastructure by TechnipFMC is underway in Batam, Indonesia.

3. Golden Pass LNG

The Golden Pass project at the existing Golden Pass LNG facility in Sabine Pass, Texas, is moving forward following a positive final investment decision from its owners, affiliates of Qatar Petroleum and ExxonMobil.

Construction on the project is expected to begin in 2019 and will take about five years. The facility is expected to be operational in 2024. Engineering is taking place in Japan and the US and fabrication yard awards are still pending for the LNG modules and pipelines.

Floating Production Units (FPU)

There are several FPU’s designed to support offshore deepwater projects. These include facilities like semisubmersible floating production systems (FPS), subsea architectures and Tension Leg Platforms. A number of these facilities are fabricated across the yards in Asia.

4. Vito

The Vito field development is located off the Gulf of Mexico. Shell estimate it will produce 100,000 barrels of oil equivalent per day at peak production. Construction of the FPU hull, topsides and living quarters began in 2018 at the Sembcorp Marine Admiralty Yard in Singapore.

Once operational in 2021, the vessel will work in deep-water levels of 1,219m. It will be the first to use gas injection to enhance recovery. Innovations in construction engineering and design have enabled Shell to reduce breakeven costs by 70% to nearer $35 USD a barrel.

5. Mad Dog 2

The second phase of BP’s Mad Dog project will begin oil production in late 2021. Samsung Heavy Industries have been awarded the contract to produce the semi-submersible floating production platform in South Korea. The vessel will have daily capability to produce 140,000 barrels of oil and 75 million cubic feet of gas.

Facility Construction Projects

Mega projects like the ones listed below are designed and fabricated in multi-site locations due to their size. All of these projects have fabrication scopes in more than two countries.

6. LNG Canada

The $40bn LNG Canada export facility will be manufactured and pre-assembled in China before being shipped to Kitimat, British Columbia. At peak construction, the project is estimated to generate 4,500 jobs.

The project is a joint venture between Shell, Petronas, PetroChina, Mitsubishi Corporation and KOGAS. It will initially consist of two liquefaction trains with capacity to produce 14 million tonnes of LNG annually. However, this could expand to four trains which would double the plant capacity. The expansion decision will likely take place at the same time the first LNG exports leave Canada in 2025.

7. Tengizchevroil (TCO)

Chevron and the Republic of Kazakhstan plan to expand the production capacity of their Tengizchevroil project. The vast scale of the field can be demonstrated by a reservoir that measures 4,000 metres at the top.

The Future Growth Project – Wellhead Pressure Management Project (FGP-WPMP) will expand annual production to roughly 39 million tonnes per year (850,000 barrels per day). Simultaneous fabrication and site construction works are taking place in Kazakhstan, South Korea and Italy. First oil is expected in 2023.

8. Tyra

The Tyra redevelopment project is currently underway in Batam, Indonesia. McDermott have been contracted to fabricate and assemble seven topside structures, six connecting bridges and six jacket extensions. The final construction will be delivered to Total in the Danish sector of the North Sea in 2020/2021. The total weight of the structure will exceed 36,000 tonnes and extend production in the field by 25 years.

Airswift are a leading provider to fabrication projects

Airswift is a leader in the upstream sector, specifically fabrication yard and offshore oil and gas. We have extensive experience supporting major shipyard projects in Asia Pacific within the key locations of Singapore, China, South Korea and Batam, Indonesia. Visit our fabrication sector page to find out more.

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This post was written by: Matt Wolstenholme, Contract Recruitment Director – Asia Pacific at Airswift