Sevan Marine continues FLNG work for US oil major

Norway’s Sevan Marine said it has continued to work on a floating liquefied natural gas (FLNG) study for a US-based oil major.

The designer of offshore floating units won in May 2016 the follow-up study to continue the exploration of the use of its cylindrical hull for a specific FLNG development.

The concept is based on the circular and geostationary Sevan FPSO design with a gas processing and liquefaction capacity of up to 4 mtpa and storage capacity of up to 240,000-cbm of LNG, according to Sevan Marine.

The FLNG study has continued in the fourth quarter, Sevan said in its quarterly report, adding that more work was expected to start in the first three months of this year.

During the quarter, Sevan Marine’s affiliated company HiLoad LNG continued talks with Vires Energy Corporation for the development of an LNG regasification terminal in the Philippines.

The terminal would utilise the floating regas dock (FRD), based on the HiLoad technology, which, according to Sevan Marine is an alternative to FSRUs when working with smaller volumes ranging from 50 to 200 mmscfd.

“The FRD has also attracted other market interest and HiLoad LNG is optimistic that additional FRD related work can be won in the coming quarters,” the company said.

Sevan also said that the newly merged LNG engineer TechnipFMC had informed the company in January this year of its intention to buy Sevan Marine’s 51% shareholding in topside specialist Kanfa.

The Arendal-based designer expects the transaction to close during the first quarter 2017.

Looking ahead, Sevan said that it would continue to operate in a “challenging” market where many of its key prospects have been delayed over the past years due to the slump in oil and gas prices.

However, the recent improvements in the oil price and market sentiment has led to “increased market interest for Sevan Marine’s services and the cylindrical design.”

“This has particularly been the case for harsh environment projects such as those in the Barents Sea and Australia for both FPSO and FLNG applications,” the company added.

LNG World News Staff