GLNG—a dragon by the tail

WilkinsonDelivering a world-first of natural gas from coal seams to Asia has many challenges, which go beyond those expected with standard mega-projects.

Execution of the upstream requires a deep understanding of the subsurface and options, combined with a considerable logistics challenge. Tens of thousands of freight movements in the field are required before the first LNG cargo can be shipped.

Onshore supply for LNG scale plants covers thousands of square kilometres, and while the physical size of the well heads are small, the number of stakeholders is extensive.

The licence to operate in communities must be carefully nurtured, both by individual companies and the wider industry. Innovations such as GLNG’s irrigation project to handle water are a part of building the links between the project and stakeholders.

LNG customers are by their nature conservative and usually closely linked to governments. For LNG, the relationship between supplier and customer usually extends over decades, and pre-investment in relationships is required to build trust and understanding.

The right choice of joint venture partners is critical to the success of the project. Careful consideration must be made of what each party brings to the arrangement and how their strengths and weaknesses will work together.