Transborders signs FLNG agreements

Thursday, 04 February 2021
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Australian-based Transborders Energy has signed multi-party and multi-project FLNG solution framework agreements.

These agreements allow for the joint pursuing of the deployment of the company’s FLNG solution on a range of stranded offshore gas resource projects.

They are claimed to be the first collaborative arrangement among large engineering procurement, construction & installation (EPCI) and O&M contractors, investors and LNG offtakers to collectively commercialise a series of discovered but stranded offshore gas resource opportunities.

Among the companies signing up to the framework agreements were - Add Lucid (Add Energy Group); Kyushu Electric Power and Kyushu Electric Australia; Mitsui OSK Lines (MOL); Single Buoy Moorings (SBM Offshore); and Technip France (TechnipFMC).

Transborders said that each party had agreed the terms and conditions of key term sheets in relation to the FLNG and upstream facilities EPCI, plus the gas offtake and liquefaction tolling arrangements that would apply on a range of stranded offshore gas resource opportunities.

Preferential rights

They also agreed to certain preferential rights granted to each party, such as those related to the investment in and offtake from each project.

Add Energy Group’s CEO, Ole Rygg, said, “We are proud to be able to contribute our technology, drilling, completions, operational and maintenance expertise under this multi-party framework agreement as Transborders leads the way in commercialising stranded gas resources through FLNGs.

“This is an important project for Add Energy and the industry as we focus our efforts on unlocking opportunities that reduce our carbon footprint,” he said.

Arnaud Pieton, President Technip Energies, added: “This FLNG framework agreement is a new step for the FLNG industry and for our energy transition journey to a low-carbon society.

“Under this framework, TechnipFMC would further strengthen its FLNG leadership and leverage the expertise and learnings from its other three FLNG projects in operation or under construction,” he said.

Transborders Energy’s Chairman, Jack Sato, said: “This FLNG framework agreement is a first-of-its-kind collaborative arrangement among world class EPCI and O&M contractors, investors and offtakers to collectively commercialise a series of discovered but stranded offshore gas resource opportunities.

“Our pre-agreed commercial arrangements, together with our pre-engineered 1.5 mill tonne per annum FLNG facility, can convert stranded gas resources into ‘project sanction (FID) ready’ projects within 24 months, while also allowing LNG offtakers access to competitive LNG supply sources and to attractive FLNG facility investments,” he claimed. 

 

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