Recently two of the world's largest energy companies announced they were joining to develop a record-breaking liquefied natural gas (LNG) project – one that could deliver huge profits for the companies and investors.
Exxon Mobil Corp. (NYSE: XOM) and BHP Billiton (NYSE ADR: BHP) announced earlier this month they were forming a joint venture to build the biggest floating LNG, or FLNG, facility ever. It'll be located off the northwestern shore of Australia.
FLNG is the industry's answer to accessing supplying much needed LNG to energy-hungry Asia, but trying to avoid the increasing costs of onshore plants in Australia.
An increasingly number of companies plan to invest in FLNG over the next few years.
Energy research firm Douglas-Westwood recently reported that global spending on FLNG projects will reach $47.4 billion between 2013 and 2019. About $28 billion will go to FLNG liquefaction spending, and $19 billion on import terminals.
"For more than 30 years FLNG export has been an ambition of the offshore industry, but it is now well on the way to reality," said report author Murray Dormer.