The invitation was issued to three consortiums made up of engineering and shipyard contractors who were selected after a pre-qualification exercise carried out by Shell.

"Investing in new LNG technologies is a key part of Shell's efforts in meeting the energy challenge," Shell executive vice president for Gas & Power in Asia Jon Chadwick said.

"Shell's FLNG solution enables the development of previously uneconomic natural gas resources far from shore and enhances the ability to operate responsibly in environmentally-sensitive areas.

"The elimination of pipelines and onshore liquefaction facilities means FLNG projects will have a considerably reduced social and environmental footprint."

Shell's cyclone-tolerant FLNG design will be 450m long by 75m wide.

Bids are expected around the end of 2008, with a contract possibly awarded in 2009.

Sources have told PNN that Shell will use FLNG to develop its Prelude field in the Browse Basin, which is believed to hold 1-2 trillion cubic feet of gas.

Shell executive director of gas and power Linda Cook had told the APPEA 2008 Conference in April that floating LNG may be used for the company's Prelude field, which is believed to be 1-2 trillion cubic feet in size.

She added that floating LNG may also be suitable for the Woodside-operated Sunrise field in the Timor Sea, in which Shell, ConocoPhillips and Osaka Gas are also partners.

However, Shell will not be the first company off the blocks with FLNG.

Norway's Flex LNG already has ships incorporating liquefaction units under construction in South Korea.

The company has also signed agreements with Rift Oil to develop its onshore Papua New Guinea gas reserves and, along with Mitsubishi and Peak Petroleum Industries Nigeria, will jointly develop and market the world's first floating liquefaction project off the coast of Nigeria.

Flex's LNG Producer FLNG units will be capable of producing 1.5MMtpa of LNG.