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Lowering LNG project capital cost through large-scale modularization.

Number: 12

Author(s) : DRUCKER A., STRITTMATTER C., MAYER M., MASANI K.

Summary

Global LNG remains pivotal to energy security and industrial competitiveness, with global LNG demand projected to continue growing, driven by European energy security needs, Asian economic expansion, and emerging markets’ transition to cleaner and more reliable fuels. However, escalating capital costs threaten LNG affordability – exacerbated by supply chain disruptions or shortages, sitespecific challenges, and skilled labor shortages, specifically on the United States Gulf Coast (USGC) where increased construction activities across the energy sector are stretching limited labor resources, where construction is primarily “stick-built.”
To address the need for cost-effective, predictable LNG plants, McDermott and ConocoPhillips have developed a standardized modular design utilizing the Optimized Cascade® Process (OCP)1 and leveraging a large offshore module philosophy to capture economies of scale.
This design is different from other USGC stick-built projects and benefits from McDermott’s proven large-scale USGC modules in non-LNG projects and maximizes LNG production per square meter of real estate greater than 50% to comparable projects. Increasing the value of this metric is seen to drive a commercially attractive solution on many fronts:
- Higher On-Module Equipment Density: Reduced module footprint resulting in a decrease in pipe,
cable, and concrete quantities with a corresponding reduction in costs.
- Systemization Approach in Module Design: Increased pre-commissioning and commissioning
activities in fabrication yard allowing for safer, more controlled work fronts, thereby reducing labor
and time for remaining site-based activities.
- Reduced Number of Modules: Reduced number of on-site hook-ups and site activities, while still
assuring flexibility in transportation of modules.
By prioritizing modularization, the LNG industry can deliver cost-effective, scalable LNG solutions to meet global LNG demand sustainably.

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Details

  • Original title: Lowering LNG project capital cost through large-scale modularization.
  • Record ID : 30034625
  • Languages: English
  • Subject: Technology
  • Source: 21st International Conference & Exhibition on Liquefied Natural Gas (LNG2026)
  • Publication date: 2026/02/05

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