Japan's Kyushu will join Transborders-led £872.2m small-scale FLNG project, which plans to commence production in 2026


Image: Illustration of the small-scale FLNG solution. Photo: courtesy of Transborders Energy.

Australia’s Transborders Energy has signed a joint study agreement with Japanese utility Kyushu Electric Power and its affiliate Kyushu Electric Australia (Kyushu) to develop a small-scale Floating LNG (FLNG) solution and produce LNG from standard gas fields offshore Australia.

In addition to developing FLNG solution, the joint study parties will pursue the deployment of the solution at small-scale stranded gas resources.

Transborders Energy plans to invest A$1.6bn (£872.2m) for the offshore gas project, which secured Major Project Status by the Australian Government in 2018.

Transborders’ Chairman Jack Sato says, “Transborders’ goal is to unlock stranded gas resources, develop a new LNG supply source, and offer alternative LNG solutions.

“Participation by major Japanese utilities as strategic partners, such as Kyushu, in the Joint Study endorse and add significant value to our FLNG Solution.”

The Australian firm said that the FLNG Solution is a pre-determined FLNG and wells tie-back development concept.

Through the new agreement, Transborders will collaborate with Kyushu to conduct technical pre-FEED with Transborders’ strategic partners TechnipFMC and Add Energy; pre-negotiate key commercial terms of the FLNG Solution; and pursue the deployment of the FLNG Solution on stranded gas resource opportunities.

Transborders, based on the joint study agreement, has also signed agreements with TechnipFMC and Add Energy to commence the technical pre-FEED work.

MODEC Management Services, as operational advisor, is responsible for providing support to the pre-FEED work.

Transborders will complete FLNG solution development work in 2019

Transborders said in a statement: “Upon completion of the Transborders’ FLNG Solution development work in 2019, Transborders will be in a position to convert a range of stranded gas resources into ‘project sanction (FID) ready’ state within 24 months after FLNG Solution deployment, while also allowing LNG buyers access to competitive LNG supply sources.”

Transborders Energy plans to commence production in mid-2026 at the earliest and expects to increase the country’s LNG exports by 1.2 million tonnes per annum over the project’s 25-year operational life.