Table of Contents
Summary/investment opinion ......................................................... 4
FLNG projects are starting to materialize…........................................................................... 4
Purpose of report, industry participants................................................................................ 4
Valuation ............................................................................................ 5
The sector’s average P/B and DCF models are used as reference......................................... 5
Risk factors......................................................................................... 6
Contract value and type of contract should be examined ...................................................... 6
From high risk/high return to medium risk/medium return..................................................... 6
Summary of FLNG ............................................................................. 7
Summary of FLNG and LNG-FPSO systems ......................................................................... 7
Major firms engaged in FLNG technology and gas development........................................... 7
How FLNG projects came to attract attention................................ 9
Why LNG-FPSO is now attracting attention.......................................................................... 9
Strong possibility that LNG-FPSO will be used in stranded gas fields .................................... 9
Why LNG is attracting interest....................................................... 12
Relative superiority due to: (1) being a clean form of energy; and (2) ability to supply stable
volume............................................................................................................................. 12
Implications of gas turbines, wind power and nuclear power as energies/technology that can
be tapped … ..................................................................................................................... 12
Short-term outlook for global LNG demand and medium- and
long-term potential ......................................................................... 14
Supply-demand balance likely to ease over the short term for the global LNG market.......... 14
No change in LNG’s superiority, usefulness, and medium- and long-term potential ............. 14
Comparison of land-based LNG plants and FLNG plants ............ 17
Position of FLNG plants in the LNG chain........................................................................... 17
Cost comparisons for constructing land-based and FLNG plants ......................................... 17
Record of building onshore LNG plants and future project......... 19
In the past three years, Japanese engineering companies have received no EPC orders...... 19
FLNG likely to be derived from technologies related to land-based LNG plants.................... 19
FLNG projects/participants ............................................................ 21
Plans for 25-30 FLNG systems over the next 10 years ........................................................ 21
FLNG to be based on technology for land-based LNG plants............................................... 21
FLNG technology............................................................................. 23
Four technological challenges related to FLNG................................................................... 23
Shell adopted the DMR process used in the Sakhalin II project. SPB method receiving high
marks............................................................................................................................... 23
Individual companies ...................................................................... 25
JGC (1963): Track record with LPG-FPSO in Angola and Indonesia...................................... 25
Chiyoda (6366): Constructed world’s largest LNG plant ...................................................... 25
Mitsubishi Heavy Industries (7011): FLNG is becoming the core component of its marine
vessel and ocean business ................................................................................................ 26
Kawasaki Heavy Industries (7012): Looking for ways to develop its FLNG business............. 26
IHI (7013): Can the company make a comeback with SPB tanks?........................................ 27
Mitsui Engineering & Shipbuilding (7003): Looking to develop its FLNG business through
Modec .............................................................................................................................. 27
Modec (6269): Fabless Many years of experience in FPSO................................................. 27
Hisaka Works (6247): Provides heat exchangers for both plants and ships .......................... 27
Yokogawa Electric (6841): Involved in the industry via control equipment for plants............. 28
Technip (TECF): Has track record in the marine engineering business and in FPSO systems 28
Samsung Heavy Industries (010140): Strong candidate for winning order on the Shell project
........................................................................................................................................ 29
Hyundai Heavy Industries (009540): Completed the world’s first dock dedicated to FPSO
systems ............................................................................................................................ 29
Daewoo Shipbuilding & Marine Engineering (042660): World’s top track record for LNG
carriers............................................................................................................................. 29
Individual company reports............................................................ 31
JGC (1963) ........................................................................................................................ 32
Chiyoda (6366) .................................................................................................................. 49
Mitsubishi Heavy Industries (7011)..................................................................................... 64
Hisaka Works (6247).......................................................................................................... 85