In providing technical, advisory and engineering services for Transborders, Add Energy have helped Transborders to advance its business proposition to commercialise stranded offshore gas resources in the Australian jurisdiction. This is being achieved by deploying a 1.3 million tonnes per annum Floating LNG (FLNG) vessel and subsea wells tie-back concept, aligned with its regulatory approvals, hydrocarbon sales and other key commercial negotiation processes (FLNG Solution).
Add Energy’s Vice President of Well Engineering, Eduardo Robaina commented on the partnership:
“We remain engaged in our partnership with Transborders, as we see great opportunities on how to deliver Low Cost energy solutions.”
“Our journey since early 2017 further confirms the need to think outside the box to capitalize on the LNG market within stranded offshore gas resources and to be aligned with new business strategies ahead of high LNG market demand projections for 2025.”
Transborders’ FLNG Solution delivers an accelerated development alternative to convert stranded gas resources into 2P reserves within 12 months and the achievement of project sanction (FID) within 24 months from project commencement. Their FLNG Solution also provides buyers access to a competitive LNG supply source.
Transborders Managing Director, Daein Cha commented:
“The crossover point for LNG demand exceeding supply has come forward by several years from the previously expected inflexion point of 2025; and for those who deploy our FLNG Solution, they can have positioned themselves to capture the potential upside associated with the rebalancing of the LNG market.”
Because of the increasing demand in energy and the potential to monetise a series of stranded gas resources, the development activities for Transborders’ FLNG Solution has been granted “Major Project” status by the Federal Australia Government in March 2018, meaning the Australian Government recognises the strategic significance of the project to Australia, and will provide coordination and facilitation support as well as a single entry point for to a coordinated approvals process.
Federal Australian Minister for Jobs and Innovation, Michaelia Cash welcomed the project’s expected job creation and innovative approach, stating that:
“This project is a great example of how innovation within our existing industries is creating new jobs for Australians.”
As well as the creation of new jobs and the innovation behind it, this project will help position Add Energy as the focal point of engineering consulting in Australia, as well as showcasing the different markets that Add Energy can work in.
Transborders has also entered into a Joint Study Agreement with a Major Asian LNG Buyer in April 2018, for co-developing the FLNG Solution. The involvement of a major Asian LNG Buyer in developing Transborders' Generic FLNG Solution provides significant credibility and the potential for bankability of the future deployment of the Solution.
During the study agreement, Add Energy will be involved in all upstream well engineering parts of the project, whilst also being on hand to give advice in all areas relating to reservoir, drilling, completions, Top sides, well integrity, well interventions and well testing.
Add Energy and Transborders, together with its exclusive partner TechnipFMC, technical advisor MODEC, and a Major Asian LNG Buyer, will continue to progress the solution during 2019, to enhance the technical and commercial deploy-ability of Transborders FLNG Solution for a range of stranded gas resources.
Specifically, the parties will work together to enhance the technical and commercial definition of the FLNG Solution that comprises the following:
Completing a “Generic“ FLNG technical Pre-Front End Engineering and Design (Pre-FEED) that caters to a range of discovered but stranded gas resources.
Completing negotiation of key terms of major agreements for underpinning the reserve booking as well as facilitating project sanction (FID).
Transborders plans to deploy its FLNG Solution on a specific gas resource in 2020, with FID further planned in 2022. Thereafter, the FLNG Solution can be replicated and deployed in other locations to grow the global LNG supply sources and Transborders’ FLNG Solution deployment business. As part of the FLNG Solution, Add Energy will be supplying well engineering, well management, Pre-FEED and FEED advice for the development wells scope.
“Add Energy’s outstanding capabilities and track record in drilling and wells operations, and wells safety and risk management significantly bolsters our credibility for deploying our FLNG Solution to a range of stranded gas resources.”