LNG: Modular vs Stick-Built?

8 September 2026

LNG: Modular vs Stick-Built?

Modular is favoured at remote sites with limited labour, infrastructure and supply access.

Key Points

• CAPEX 🟢 ↓ Potential saving: 5–10% (1)

• Project Duration 🟢 ↓ Up to 20% shorter (2)

• Overall Plant Weight 🔴 ↑ 20% higher (3)

Modular Advantages

1. Site Construction Hours 🟢 ↓ Less on-site work

2. Camp Cost 🟢 ↓ 41% lower (3)

3. Fabrication-Yard Productivity 🟢 ↑ 25–30% higher (1)

4. Fabrication Cost 🟢 ↓ 28% lower (3)

5. Weather: Reduced site exposure

6. Quality: Controlled fabrication and testing

7. Replication: Repeatable engineering across multiple trains

8. Supply-Chain Access: Established procurement and material-delivery networks

Stick-Built Advantages

1. Infrastructure 🟢: No need for dedicated module-offloading facilities or reinforced module-transport routes

2. Transportation 🟢: No need for specialised heavy-lift vessels for large modules

3. Flexibility 🟢: Layout, construction access and maintenance access

4. Proven Construction Method 🟢

5. Local Content 🟢: If required

Modular LNG Projects

🇦🇺 2008 — North West Shelf Train 5: 4.4 MTPA | 75 modules | largest module approximately 1,800 tonnes (4)

🇦🇺 2016 — Gorgon LNG: 15.6 MTPA | 51 process modules | 236 pre-assembled racks and units | more than 240,000 tonnes | largest module approximately 6,300 tonnes (4)

🇦🇺 2018 — Ichthys LNG: 8.9 MTPA original nameplate capacity | 230 modules | four Asian fabrication yards | individual modules exceeding 5,500 tonnes and 90 metres in length (5)

Fabrication Contractors

🇨🇳 China — Scale, Supply Chain, Cost: BOMESC | COOEC | Qingdao McDermott Wuchuan | Wison New Energies | COSCO SHIPPING Heavy Industry

🇰🇷 South Korea — Complex Integration, Heavy Lifting: Samsung Heavy Industries | Hanwha Ocean | HD Hyundai Heavy Industries

🇮🇩 Indonesia — Workforce, Space, Marine Access: McDermott Batam | Saipem Karimun

🇹🇭 Thailand — International Module Delivery: CUEL | STP&I

🇵🇭 Philippines — Competitive Fabrication, Direct Load-Out: AG&P Industrial

🇲🇾 Malaysia — Energy and Offshore Capability: Malaysia Marine and Heavy Engineering | Brooke Holding

Methodology

1. Basis: Illustrative comparison of modular and stick-built execution for the same LNG facility.

2. Inputs: Published industry benchmarks and modelling assumptions; camp, fabrication and weight figures refer to the conceptual comparison in source (3).

3. Chart: Proportional cost-reduction and additional-cost bars; matching scale breaks in the total columns.

4. Scope: Illustrative analysis, not a project-specific cost estimate. The concluding progression indicates opportunities, not a universal cost or schedule ranking.

Sources

1. CAPEX & Productivity: McKinsey — Setting the Bar for Global LNG Cost Competitiveness.

2. Project Duration: McKinsey — Saving Time and Money on Major Projects.

3. Camp, Fabrication & Weight: Arif Habibullah / WorleyParsons — Modular vs Stick Built LNG Plant.

4. North West Shelf Train 5 — CB&I, Annual Report 2007, p. 12, Woodside, Annual Report 2007, “About the cover”, Oil & Gas Journal, Train 5 Start-up, Gorgon LNG — Hatch, Gorgon LNG, Chevron, Gorgon Overview.

5. Ichthys LNG: INPEX — Final Onshore Modules Arrive Onsite for Ichthys LNG Project.

Stick-Built → Modules → FLNG

CAPEX 🟢 ↓, Project Duration 🟢 ↓

For further discussion, see our Energy & LNG — 8 Articles.

© Alexei Bykov / REBDUK | www.rebduk.com

Research and illustrative analysis. Feel free to reference or share — we would appreciate a credit and a link to the original article.

#LNG #ModularConstruction #StickBuilt #CAPEX #EnergyInfrastructure #FEED #EPC #ProjectDevelopment