CNOOC abandoning FLNG plans, eyeing cheaper option

China National Offshore Oil Corporation has reportedly given up on FLNG option to develop its South China Sea gas discovery. 

According to sources close to the matter, using an FLNG vessel to develop the Lingshui 17-2 deepwater gas discovery would be expensive. Interfax reports.

The source said that due to the fact that CNOOC hasn’t previously done any FLNG projects the company could not afford the risk of it failing due to the high costs estimated at US$ 1.6 billion.

The company has decided to go for a cheaper option similar to the Caribbean FLNG, which does not require a complex liquid cargo transfer system and the barge-based floating liquefaction, storage and regasification unit could be moored close to shore, reducing transmission distance.

The FLSRU option would also enable CNOOC to import LNG cargoes when necessary.

In December 2014, Technip was reportedly preparing to present the pre-FEED plans for an FLNG vessel to CNOOC.

LNG World News Staff; Image: Technip