Transborders Energy (TBE) Director Daein Cha presented at the 2018 Energy Council Asia Pacific Energy Assembly (Singapore) on the topic of - Adapting to New LNG Market Dynamics; Buyer, Supplier & Trader Perspectives.
Me Daein Cha discussed the following:
“TBE’s value proposition is (1) low lifecycle project cost, (2) accelerated time to market, and (3) collaboration.”
“Regarding low lifecycle project cost, TBE’s FLNG projects are predicated to achieve a breakeven LNG price (Freight On Board; FOB) of USD 6.5 / MMBtu. This target price falls within the 2nd quartile of cost competitiveness for all existing, under construction and proposed LNG projects worldwide, and ensures that our FLNG projects remain resilient and profitable in a low commodity price environment. To achieve the breakeven LNG price target of USD 6.5 / MMBtu (FOB), TBE consciously chooses to not conduct the following activities:
No exploration and appraisal drilling – TBE focuses on discovered but stranded gas resources;
No concept generation and selection work – TBE promotes the deployment of a pre-determined low-cost 1 million ton per annum LNG producing FLNG development concept on gas resources that fit its concept; and
No other business – TBE’s sole business activity is to deliver its FLNG development.”
“Regarding accelerated time to market, TBE continues to enhance its technical engineering work for its pre-determined 1 million ton per annum LNG producing FLNG development concept. TBE augments this technical solution with a package of pre-negotiated key commercial terms such as that for the hydrocarbon sales, EPC and FLNG charter arrangements. The combination of this technical and commercial “FLNG Solution” package allows for TBE to convert discovered but stranded gas resources (that fit TBE’s FLNG Solution) into 2P reserves within 12 months and FID ready within 24 months after project inception.”
“Regarding collaboration, TBE performs the chief integrator role and sets the project development frame to achieve the following:
A breakeven LNG price of USD 6.5 / MMBtu (FOB); and
Minimum project functional objectives.”
“TBE further collaborates extensively and transparently with its stakeholders (the LNG Buyers, resource owners and the EPC / O&M contracting entities) to implement innovative financing and commercial structures to achieve its breakeven LNG price of USD 6.5 / MMBtu (FOB).”
“For resource owners and operators to secure foundational LNG buyers to underpin their LNG projects, listening intently to the specific needs of the LNG buyers is key. While all LNG buyers will voice LNG price, flexibility and optionality as key attributes for considering which LNG projects to underpin, each LNG buyer will have different priorities among these attributes. Our role as developers of LNG projects is to deliver a low-cost project for enhancing the ability to supply LNG on competitive and/or flexible terms, and to prioritise the key value proposition of each LNG project that meet the specific needs and priorities of its prospective LNG buyers.”
The 2018 Energy Council Asia Pacific Energy Assembly (Singapore) was attended by over 750 delegates from over 30 countries representing the entire energy value chain including upstream, government, EPC/services, LNG, midstream, gas-to-power, investment houses, legal and financial services.
The Panelists at the 2018 Energy Council Asia Pacific Energy Assembly, including Daein Cha of Transborders Energy (2nd from right).