FLNG Dream Remains

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FLNG dream remains

Wednesday, 10 July 2013 DESPITE its ongoing commercialisation negotiations with ExxonMobil, InterOil’s floating LNG plans in Papua New Guinea seem to be intact, with founder Phil Mulacek scheduled to discuss them at an FLNG conference in October. Illustration courtesy of Samsung Heavy Industries ExxonMobil’s period of exclusive negotiations over acquiring at least a 4.6 trillion cubic feet of natural gas slice of InterOil’s Elk-Antelope discoveries in PNG will last two more weeks, providing there is no time extension. What InterOil and the PNG government will do with the rest of the field – with GLJ Petroleum Consultant’s best case estimate at 9.07Tcf of initial recoverable sales gas – is not yet known, although InterOil has previously favoured modular LNG development through Energy World Corporation and FLNG development led by Flex LNG. Some confirmation that the FLNG option is not off the table has come from the program schedule for the 11th FLNG Asia Pacific Summit to be held in South Korea on October 21-23. Mulacek is expected to “provide insights into InterOil’s strategies”, including the progress of the FLNG concept and its “technological adaptability” for PNG’s stranded reserves. While InterOil interim chief executive officer Dr Gaylen Byker has previously told PNGIndustryNews.net that Exxon wants 4.6Tcf to underpin a third-train expansion of the PNG LNG project, Mulacek purportedly sees a new FLNG opportunity. According to the conference website, Mulacek’s speech will include an update on whether Elk-Antelope “will support an expansion of the PNG LNG project to incorporate floating facilities or a new gas-export facility”. Mulacek remains a director of InterOil after resigning as chief executive officer in April. He owns about 8% of the company. Considerable front-end engineering and design work for a floating LNG plant for InterOil’s Gulf LNG project was completed in 2011 with a WorleyParsons-led joint venture studying the topside of the vessel and Samsung Heavy Industries working on its hull aspects.