Experts and analysts suggest that government must incentivise private players to set up Floating Liquefied Natural Gas (FLNG) plants for extracting natural gas. Such a plant will not only boost production of natural gas but also reduce the greenhouse effect of associated gas which is currently flared into atmosphere from the majority of offshore installations worldwide.
According to a data, up to 150 Bn CM of associated gas is being flared annually. It is equal to nearly 2.4 million barrels of oil equivalent per day and adds up to nearly 400 million tonne per year of CO2 equivalent global greenhouse carbon emissions. Setting up a FLNG plant is also cost effective. It is estimated that setting up a FLNG production plant will cost less than two-third of what an onshore plant would cost.
The USP of a FLNG plant is that by process of liquefying the flare gas, it qualifies as being a sustainable development and clean energy project.
If we exclude the proportion of CO2 content from the flare gas, nearly 80-85 per cent of the remaining can be converted into a saleable global commodity, ie, into LNG and other condensates of higher molecular carbon content like LPG. Such a project can generate huge cash flows for the project owner, including by selling certified emission reduction credits.
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