Shipyard-constructed design could be more cost-efficient for remote areas with land-based gas resources
South Korea’s Hyundai Heavy Industries (HHI) has received approval in principle (AiP) from class society DNV GL for a design to construct a jetty-moored, near-shore floating LNG (FLNG) barge. The AiP certificate confirms that DNV GL has found no significant obstacles to prevent the concept from being realised by applying the DNV GL rules for classifying ships and offshore standards.
“The FLNG market is beginning to emerge, and near-shore projects are expected to be at the forefront of these developments,” said HHI general manager Simon Lee. “Our design offers lower production costs, reduced time to production, and improved environmental performance,” said Mr Lee. “DNV GL’s AIP for our new and innovative near-shore FLNG design shows that we have a technological edge in this market.”
FIDs on awards of some US$19.2Bn of projects involving FLNG vessels and floating production, storage and offloading vessels are expected to be decided over the next year, according to Westwood Global Energy Group senior analyst Mark Adeosun. South Korean shipyards have been dominant players in constructing such vessels, accounting for 55% of the orders and 73% spend from 2004-2013.
“Floating solutions which can be constructed at a shipyard, such as HHI’s concept, could provide the LNG industry with flexible and cost-efficient solutions,” said DNV GL technical director newbuilding, offshore classification Mike Brogan. “These concepts could be particularly useful in areas with land-based gas resources where onshore construction is not feasible or desirable,” he added.