Gasol and Teekay have agreed to strengthen their relationship and have signed a Memorandum of Understanding (MOU) centred on the development of a unique liquefaction process.

Gasol, with the assistance of Teekay Corporation, has developed the concept of a Near-Shore LNG Production System ("NSPS™") with a view to applying this concept to gas monetization projects in Nigeria and elsewhere in the Gulf of Guinea region. The NSPS™ is based on using floating modules on barges that are berthed and moored to a fixed and protected jetty. It is designed to be used in benign waters (as found in the Gulf of Guinea) in close proximity to the shore, to produce LNG, LPG, condensates and power.

The Company's concept is predicated on already tried and tested technology put to an alternate use, thereby minimizing the development risks. The Wood Group-owned Nitrogen Dual Expander (NDX-1) liquefaction process design usesa proprietary, nitrogen refrigeration process that is simple, compact, energy efficient and flexible over a wide range of feed compositions. The NDX-1 liquefaction process is easy to operate, and will have a production scalability for this project of 2-6 million tonnes per annum ("mtpa") of LNG.

Mustang, a Wood Group company, has completed a Feasibility Study, commissioned by Gasol, to review, evaluate and optimize the NSPS design. Facility operation input was contributed by Teekay Gas Services. The NSPS feasibility study concluded that the design is technically sound and can be designed and built to industry accepted codes and standards.

While further detailed evaluation and feasibility of the NSPS will need to be conducted, the NSPS's total CAPEX / OPEX estimates for the facility are competitive on a cost per tonne of LNG production capacity as compared to other industry projects;

The parties will jointly decide the timing to proceed to Front End Engineering Design (FEED), applied on identified gas reserves in the Region. The project lead time from start of FEED to first delivery of LNG cargoes is 3.5 to 4 years and is therefore an economic alternative to both onshore traditional LNG plants and FLNG. Gasol is currently in negotiations with various gas reserve owners and LNG partners/off-takers regarding the application of NSPS to emerging projects; the initial feedback to NSPS is encouraging.

Tags: Gasol Plc, Teekay