Transborders Energy, a Western Australia-based company, said it signed an accord with prominent Japanese liquefied natural gas industry participant Osaka Gas on small-scale floating LNG projects.
Osaka Gas is one of Japan’s main importers with contracts at the main export plants around the world and its latest volumes deal is a 20-year liquefaction tolling agreement with the Freeport LNG export plant in Texas, the newest of the Gulf Coast facilities to come on stream.
Transborders is seeking customers and partners for its small-scale floating LNG vessel with capacity to produce around 1.2 million tonnes per annum.
The Australian company also offers to arrange natural gas sales accords and other key commercial agreements to push ventures forward.
“This memorandum of understanding will facilitate information and knowledge sharing for both companies to evaluate projects that could commercialize stranded offshore gas resources based on Transborders’ FLNG solution,” said a statement.
Transborders provides a pre-engineered floating LNG facility and its package includes “streamlined commercial arrangements and a robust regulatory approval execution plan” for gas resource owners.
“Osaka Gas’s capabilities in the LNG business are world class,” said the Transborders Chairman Jack Sato.
“We look forward to seeking insights and support from Osaka Gas to strengthen the development of our venture,” he added.
“By the end of 2019, Transborders will be in a position to convert a range of stranded gas resources into ‘project sanction (FID) ready’ states within 24 months after the FLNG solution deployment, while also allowing LNG buyers access to competitive supply sources,” the Australian company explained.
Transborders said it would first deploy its FLNG vessel with its strategic partners, Japanese utility Kyushu Electric Power and engineering company TechnipFMC.