Transborders Energy presented at the 2018 APPEA Conference and Exhibition
17 May 2018
Transborders Energy (TBE) Managing Director, Daein Cha, presented at the 2018 APPEA Conference and Exhibition (Adelaide, Australia) on the topic of “A New Approach to Value Creation – Stranded Gas Resource Commercialisation via Low-Cost Small Scale Floating LNG Projects.”
Mr Cha stated that, “There are approximately 240 discovered but stranded offshore gas resources within the range of ~0.5 to 5.0 Trillion Cubic Feet (TCF) of Expected Ultimate Recovery (EUR) each of which approximately 40 of such fields representing 65 TCF of EUR resides within the Australian jurisdiction. Operators are challenged to commercialise these gas resources due to a number of factors such as lack of materiality within their oil and gas resource portfolio, remote location and lack of a low-cost development concept.”
“For such resources, the conventional approach to develop a bespoke development concept for each has been challenged. Transborders promotes a different approach to achieve commercialisation. This consists of (1) deploying a predetermined low-cost small scale FLNG development concept on gas resources that fit the concept (2) confirming fit of the concept and the gas resources by adopting a target breakeven LNG price and assessing the achievability of such target based on a project lifecycle economics assessment (3) co-developing innovative financing and commercial structures among key stakeholders to enable project development within the constraint of a target breakeven LNG price; and (4) differentiating LNG offtake value proposition to secure LNG offtake contracts that underpin project bankability.”
“The development of these discovered but stranded offshore gas resources is a significant untapped opportunity, with significant potential upside by taking advantage of the expected LNG supply shortage expected from the mid-2020s.”
For profile on Daein Cha , click here
The 2018 APPEA Conference and Exhibition gathered 2,000 delegates and over 120 exhibitors from across Australia and around the world, and is the southern hemisphere’s largest annual upstream oil and gas conference.