FLNG Market Analysis

FLNG Market Analysis

Low investment cost, enhanced flexibility and fast track implementation are some of the key factors stimulating the demand for FSRU. The facilities find a wide application across several countries which lack domestic energy reserves. A floating storage regassification unit is an LNG storage vessel that comprises of a regasification plant that converts LNG into gaseous form and supplies it directly to the gas network.

The LNG market will onlook growth on account of surging demand for natural gas mainly across high consumption regions including Asia Pacific and Middle East. Cost efficiency when compared with onshore liquefaction plants, ability to relocate to several places along with adaptability to operate in varied well depth are few key features that will encourage the product adoption. These ships can be employed for transportation, recovery, storage and various end-use applications of marginal gas fields and offshore associated-gas resources.

Small/Mid-Scale capacity ships will witness rapid deployment on account of low capital cost and short development schedule. The facilities are mostly deployed in stranded reserves that are economically unfeasible to produce through other units. Ongoing government projects and funding activities in order to enhance the national infrastructure and promote the construction of new floating import units will complement the industry landscape. Furthermore, rising demand for flexible and cost-effective LNG distribution units will further enhance the business outlook.

The large-scale capacity will grow over 25% by 2024. Increasing gas consumption owing to shifting population toward urban areas along with large capital investments involved in pipeline projects will stimulate product demand. Easy relocation to newer fields upon the exhaustion of primary fields will further enhance the business landscape. In addition, ongoing discoveries across offshore fields along with growing demand for primary energy will enhance the industry outlook.

The Asia Pacific FLNG market is set to grow on account of accelerating investment toward infrastructure development along with substantial government support. The Government of India is seeking to raise the share of NG in the primary energy mix to 15% from the prevailing 6%, leading to a robust growth of natural gas market by 2030 with LNG being the largest contributor.

Africa FLNG market will witness substantial growth on account of ongoing government initiatives along with significant financial support for the development of stranded gas reserves across the region. Increasing energy demand coupled with rising number of projects across Mozambique will enhance the business outlook. In 2017, the government of Mozambique announced to provide funds for the Coral floating liquid natural gas infrastructure project across the Rovuma basin which is anticipated to start its commercial operations by 2022.