Monetization of Natural Gas from the Búzios Field through an ssm-FLNG Platform: Economic and Financial Assessment

Abstract

The monetization of natural gas resources associated with oil production in Brazil's pre-salt layer represents a strategic pillar for the country’s energy and industrial development. This can be achieved through an increased supply of natural gas or, potentially, by becoming an exporter of natural gas or liquefied natural gas (LNG), as production occurs offshore near the oil and gas fields. This paper proposes the concept of using a small-scale mobile floating LNG platform (ssm-FLNG) offshore to collect natural gas produced by Floating Production, Storage, and Offloading units (FPSOs) operating in the Búzios Field, located in the Santos Basin off the Brazilian coast. After initial processing by the FPSOs, which separate oil, gas, and water fractions, the treated raw gas is sent to the ssm-FLNG for final treatment and cryogenic liquefaction, turning it into LNG for transportation and marketing via LNG carriers. This study developed an economic and financial model of the liquefaction platform to verify the financial feasibility of the concept and the potential revenue it could generate. Brazil holds abundant gas reserves in the pre-salt layer, but their economic utilization is often replaced by reinjection, driven by technical needs for enhanced oil recovery, high CO 2 content, and limitations in transportation and processing infrastructure. The FLNG connected to an FPSO is proposed as a solution to reduce reinjection, increasing gas availability for the market. The required infrastructure investment is substantial, with estimates from EPE for pipeline networks reaching billions of Brazilian Reais. The use of floating liquefied natural gas (FLNG) is seen as a potential substitute for traditional pipeline networks, which are costly, environmentally impactful, and rigid in terms of capacity. FLNG allows for gas supply to the domestic market via Floating Storage and Regasification Units (FSRUs) located along the Brazilian coast, adding value to the national industry, or for sale on the global market. This study suggests that the FLNG should be situated offshore and directly connected to an FPSO, rather than a pipeline network, to supply the consumer market with liquefied gas. No similar projects have been identified worldwide, making this a novel and unique proposal. The primary objective is to develop a model that serves as a tool for stakeholders interested in incorporating the ssm-FLNG structure into their investment decisions. Due to various assumptions in this study, sensitivity analysis around these assumptions may produce different results from those shown here. Finally, the simulated results are presented, demonstrating the viability of the proposed solution.