Prelude FLNG to cost $3 bn | IOC Message Board Posts

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Msg  7949 of 13357  at  6/1/2011 4:27:24 PM  by


The following message was updated on 6/1/2011 4:30:18 PM.

 In response to msg 7947 by  CommanderCricket
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Re: Prelude FLNG to cost $3 bn

  There are a several of process reasons for the differences in cost per mtpa for the Shell FLNG platform v IOC's.  The Shell design is 3.6 mtpa NG. 0.4 mtpa LPG and1.6 mtpa condensate.
The Shell project requires a CSP on the platform.  I suspect the cost on-board would be higher than on-shore modular as with the proposed IOC project.  Cha-ching. (I didn't calculate the condensate quantities relative to E/A)
Next, according to an environmental impact study by Shell at  section 2.3.5 the CO2 concentration in the gas at Prelude at 25% is much higher than Elk/Antelope, thus the acid gas separation facilities have to be larger and more expensive for Shell.   Cha-ching.
Interestingly the EIS also talks about the potential for geosequestering the CO2 from the deposit in the future.  Cha-ching.  There's a table in that report showing lots of CO2 in the Australian NG deposits compared to E/A.  Also there's an interesting statement that Shell supports the idea of a global  CO2 cap and trade program, but I digress.
The design will incorporate the ability to handle eight seabed risers from the well manifold and thus  all the necessary methane hydration control chemistries and removal strategies.  Cha-Ching.
Sorry about the poor organization in this ultra quick summary, but there seem to be a bunch of reasons why the Shell ship will be a bunch more expensive than the IOC design. 
The Prelude field contains 2-3 tcf of gas total, much smaller than E/A and it sits 200 KM offshore making it much more costly to service.  When you add up all the comparative numbers you have to ask yourself, given Shell's investment is it even conceivable that IOC's project won't go forward unless there's a big difference in condensates.   Again I haven't calculated the condensate numbers.  Someone I'm sure will help out with that by day's end..

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Msg # Subject Author Recs Date Posted
7952 Re: Prelude FLNG to cost $3 bn efi426hemi 1 6/6/2011 3:54:33 PM

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