Tuesday, December 5, 2017

Total targeting to develop low cost LNG projects



Published By Myrna M. Velasco

Lisbon, Portugal – French oil giant Total S.A. will be targeting markets where it can deploy lower cost liquefied natural gas (LNG) technologies on its investment-hunting play.
Total Senior Vice President for Gas Division Laurent Vivier said the company is particularly searching for opportunities “to develop low cost LNG projects post-2020.”
The French firm executive emphasized that floating regasification units could have their costs potentially reduced to approximately US$50 per ton at the turn of the decade, making gas veritably competitive then versus other fuels.
Within the 2020 timeframe, Total’s assessment would be for LNG global capacity doubling to approximately 120 million tons per year – and that scale could provide room also for suppliers to explore strategies on achieving cost downtrends.
Total is among the companies that has been exploring investment opportunities in the Philippines, primarily in the country’s developing LNG facilities development landscape.
The company has attended consultation processes that the Philippine government held on its regulatory framework for the gas industry – primarily to assess its options on prospectively entering the Philippine market.
For global industry players, a small scale development could be up to the range of 8-10 million tons per annum (mtpa), which by reference could even be bigger than the LNG facility build-up plan for the Philippines at just the maximum of 5.0 mtpa.
The global LNG sector, as noted further by multinational giant BP, is still hobbled by array of tricky concerns, including a short-term LNG supply glut seen lasting until year 2022, the changing and ever-dynamic flexibility in supply contracting, the flourishing of various price indices and other key issues such as the fast and flexible demand creation through FSRUs (floating storage and regasification units).

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