International gas production companies are still vying to be the first operators of FLNG operators in Asia as the demand for energy in the region rises and oil prices pick up again.
‘According to The Australian, companies such as Royal Dutch Shel, Inpex Corp, Exxon-Mobil and BHP Billiton are still in the running to develop the new technology. FLNG technology turns gas into a liquid export whilst still on board a vessel, as opposed to piping gas back to the mainland for processing in a facility. However, as with many new innovations, FLNG may come at a high cost. “Floating liquefaction technology is deemed to be quite expensive,” Richard Quinn, energy analyst at Australia’s Wood Mackenzie was quoted as saying by The Australian. “How expensive is yet to be determined because no one has built a full scale FLNG boat yet,” he said. Mr Quinn said that the high cost has been the main deterrent for companies in the past, however, the rise in oil price before the crash, further emphasised by the LNG demand by Asian nations, is now serving as prime encouragement for companies to look seriously into the development of the technology.