What We Do
Transborders Energy generates step changes in industry value creation by accelerating the monetisation of a range of discovered but stranded (no exploration risk) offshore gas resources in Australia and overseas.
Transborders Energy achieves this by:
Partnering with high credit worthy Japanese gas buyers and other global tier EPC and operation service providers, and
Co-delivering our pre-engineered, small-scale, low-cost and proven ~1.5 million tonnes per annum production capacity Floating LNG vessel with a package of streamlined commercial and regulatory approval frameworks (“FLNG Solution”) to stranded gas resource owners.
Our Opportunity
Why LNG?
The long-term demand forecast for LNG is increasing, with a supply shortage expected around 2025 due to growth in global demand, particularly in Asia, and the failure to develop new LNG projects. It is further expected that the demand for LNG will double by 2040 (~700 million tonnes per year) when compared to 2019 (~359 million tonnes per year), with Asia driving the demand growth (Asia is expected to absorb over 70% of this global LNG demand growth).
Summary Information on Long Term LNG Demand Forecast
Transborders Energy can provide a new LNG supply source for LNG buyers by monetising stranded offshore gas resources in Australia and overseas.
Why Now?
As LNG projects typically take approximately ten years to bring online (four to five years to engineer and an additional five to six years to construct), new projects need to progress now to take advantage of this expected shortage for capturing the upside.
Our Opportunity
In Australia, there are approximately 40 discovered but stranded gas resources ranging in size from ~0.5 to 5.0 Trillion Cubic Feet (TCF), representing 65 TCF and 25% of Australia's total identified gas resources.
Globally (excluding opportunities in Australia), there are approximately 200 of such stranded gas resources, totaling 260 TCF.
Owners of these stranded gas resources are challenged to monetisation these due to issues such as:
Lack of materiality in their oil and gas portfolio
Remote location
Lack of a low-cost development concept
While each of these gas fields may differ in value due to varying degree of resource maturation, monetisation of these represent an approximate market value of ~USD 65 billion* in Australia and an additional value of ~USD 260 billion* outside Australia that remain to be unlocked.
* Market Value = TCF gas volumes x USD 1 / MCF. Historical transaction prices of oil & gas resources sold in Australia upon FID that are bound to be LNG projects indicate market value range of ≈ USD 0.8 to 1.6 per MCF.
What Makes Us Different
Transborders Energy generates step changes in industry value creation.
Transborders Energy does this by:
Delivering a pre-engineered, small-scale (approximately 1.5 million tonnes per annum production capacity), and low-cost FLNG vessel that has proven to work and been in operation since 2016*.
Bringing Transborders Energy’s Japanese LNG Buyer partners as investor of the FLNG vessels and as LNG offtakers, and the broader TBE Project Partners to deliver the project;
Providing a pre-agreed commercial structure and set of commercial terms that have been developed by Transborders Energy and the high credit worthy partners of Transborders Energy to underpin the bankability of the gas resource development;
Utilising a pre-defined regulatory approval process to obtain all necessary approvals to enable the gas resource development
Managing the development with Transborders Energy’s small corporate overhead that is augmented by the Transborders Energy’s partners involvement
Rather than developing a bespoke development solution per gas resource, Transborders Energy’s FLNG Solution minimises engineering time and cost required for monetisation by the resource owner, as well as providing them with a reduced development scope and funding requirement. Transborders Energy can convert a stranded gas resource into commercially viable 2P reserves within 24 months from project.
Furthermore, the change in status of a gas resource from stranded to commercially viable is expected to provide a significant uplift in value to a resource owner of 7 to 15 times (based on industry precedent transactions).
* Petronas’s “PF LNG Satu” has been in operation since 4Q 2016.
