Asia/Pacific News
Exxon, BHP Plan World's Largest Floating LNG Plant
A floating liquefied natural gas (LNG) processing and export plant that Exxon Mobil Corp. [NYSE:XOM] (Exxon) and BHP Billiton Ltd. [BHP] (BHP) are planning for Australia would be the largest in the world, producing 6 million to 7 million tonnes per year (mtpa), Reuters reports.
The plant would be located off the northwestern shore of the country to use gas from the Scarborough field, which the two companies operate through joint venture Esso Australia Resources Pty Ltd, according to Exxon's website.
The floating facility would be about half a kilometer long and would increase Australia's current LNG production by almost 30 percent.
Australia has $190 billion in LNG projects now underway, but the costs of the plants have ballooned, while competition from North America and East Africa in the LNG market have raised questions about their potential.
The Scarborough plant, which could be built in South Korea, would start production in 2020 or 2021.
Exxon and BHP plan to make a final decision about the investment in 2014-2015.
Royal Dutch Shell (Shell) plans to begin operations of the Prelude floating LNG project, also off Australia's northwest coast, in 2017.
With a length of 488 meters, that plant is slated to have a capacity of at least 3.6 mtpa and to stay at the location for 25 years, according to Shell's website.
