Floating Liquefied Natural Gas (FLNG) Market Forecast: Transforming the LNG Industry Landscape
Traditionally, liquefied natural gas (LNG) facilities have primarily been constructed onshore, but rising costs and increasing demand have paved the way for a cost-effective alternative: Floating LNG (FLNG). FLNG is revolutionizing the LNG industry, offering an economical solution for monetizing stranded and associated gas.
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Global LNG Trade on the Rise
In 2019, the global LNG trade reached an impressive 354 million tonnes, marking a 13% increase from the previous year. With over 40 countries importing LNG and approximately 20 countries exporting it, the LNG market is witnessing unprecedented growth. The surge in LNG construction projects could potentially double global output by 2030, with Australia contributing around 60 million tons per annum (MTPA).
Key Drivers Fueling FLNG Growth
Several factors are driving investments in the FLNG market. Confidence in offshore liquefaction processes, increasing global LNG production, and the ease of utilization through Floating Storage Regasification Units (FSRUs) are major contributors. FLNG, along with innovative pricing methods and unconventional gas-to-LNG projects, is diversifying and revitalizing the global LNG industry, making it more dynamic and flexible.
Challenges and Opportunities
While FLNG presents immense opportunities, safety and viability remain paramount concerns for project financiers and insurers. Overcoming these challenges is essential for industry expansion, as it will streamline financing and insurance processes. Additionally, the ongoing COVID-19 pandemic disrupted the oil and gas sector, affecting seaborne trade activities and dampening the growth of the global FLNG market.
Investments Drive FSRU Facilities
The FLNG market comprises Floating Production Storage and Offloading (FPSO) units on the export side and FSRUs on the import side. Regasification vessels can adapt more swiftly to changes in production and demand dynamics, thanks to their smaller capital requirements and the capacity of LNG shipyards to build and convert these units.
North America and Beyond
North America, particularly the United States and Canada, is emerging as a key player in the FLNG market, with plans for approximately 85 MTPA of FLNG capacity. Asia Pacific leads in operational and sanctioned FLNG facilities, with Australia and Malaysia at the forefront. Meanwhile, Africa and South America are considered emerging markets, with nations like Mozambique, Cameroon, Nigeria, and El Salvador making significant investments in FLNG projects.
Leading Players
Key players in the FLNG market include Royal Dutch Shell, Petronas, Golar LNG, Excelerate Energy L.P., Höegh LNG, Exmar, Noble Energy Inc., Hyundai Heavy Industries Co., Ltd., TechnipFMC plc, Samsung Heavy Industries Co., Woodside, DSME Co., Ltd., and Saipem S.p.A. Notably, PETRONAS became the first global energy company to produce LNG from two floating facilities in March 2021.
FLNG is poised to reshape the LNG industry, offering a cost-effective and efficient alternative to traditional onshore facilities. As global energy demands continue to rise, FLNG provides a promising solution for monetizing natural gas resources, enhancing energy security, and promoting economic growth.
Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2025) https://www.fairfieldmarketresearch.com/report/floating-liquefied-natural-gas-flng-market
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