The significant plunge in oil price trends that has created a challenging environment for the LNG sector, can be primarily credited for FLNG market growth. Against this backdrop, conventional LNG players are embarking on experiments based on FLNG technology. Though still a niche segment, FLNG market has of late gained a global attention, given the enough substantiations backing its competitive viability over traditional onshore liquification plants. Beneficial fiscal initiatives undertaken by the government with regards to energy supply security is promoting the industry expansion. Recently, the European Union Member States have inked an investment proposal worth Euro 444 million in priority energy infrastructure projects. Under the same agreement, the Connecting Europe Facility (CEF) of European Union funded Euro 102 million in Croatian LNG project located on the island of Krk. A recent report brought forth By Global Market Insights Inc., depicts global FLNG market to exceed USD 78 billion by the end of 2024.
Asia Pacific FLNG Market Size, By Product, 2016 & 2024 (USD Billion)
The sanctioning of Italian oil company, ENI’s Coral South FLNG project in Mozambique sheds a positive light on the future prospect of FLNG industry. The Coral South Project is proclaimed to be the first FLNG offshore project in Africa and the third of its kind on a global level. When the globe is treading on a path of low carbon matrix, developing a plant on FLNG based technique is deemed to be a strategic move by the Italian giant. Taking into account some of the burgeoning factors outlining a transition in the LNG business space, which include increased natural gas consumption, energy security programs, and paradigm shift in fuel preference, FLNG market ground looks promising for future investments.
Significant deployments of integrated LNG- FLNG projects especially across power deficit countries have incredibly upscaled FSRU vessel implementation, subsequently driving overall FLNG industry commercialization. In fact, market experts assert that FLNG technology has the potential to be a game-changer in the liquefaction industry both from commercial and technical standpoints. Increasing demand for gas fueled power plants have reinforced the commercialization of LNG regasification, a factor which is positively impacting FLNG market growth. Some of the adhered benefits of this technology include short construction period, environmental viability, cost efficiency, and mobility.
Some of the recent projects in the FLNG market:
Wison Offshore & Marine, in June this year, has announced that it intends to develop a range of floating solutions equipped with regasification, integrated LNG loading and storage facilities, & power generation in a single unit. If reports are to be believed, the production capacity will fall in the range of 10 MW to 800 MW. The company believes that floating LNG power generation solutions have been deployed across major regions, primarily subject to the environmental policies enforced lately across the globe. In this regard, Wison’s aforementioned project is an evidence of the major developments underlining FLNG market.
The Indonesian Government has recently come up with their plan of increasing its total LNG import capacity to 35 GW by 2019. The regional government has also introduced a program for development of gas fired plants to upgrade the LNG import infrastructure for addressing new electrification targets.
Geographically, the United States is projected to witness significant gains in the global FLNG market. Favorable U.S. government initiatives to minimalize environmental damage from marine operations is one of the factors upscaling the regional FLNG market demand. Recently, the U.S. MARAD (Maritime Administration) has approved a deep water floating LNG export facility situated in the gulf Of Mexico. As claimed by the company spokesperson, this facility would include four floating liquification vessels, having an individual volume capacity of 210,000 cubic meters. It is reported to be the first of its kind to receive a government approval. With such exemplary initiations by the regional government, U.S. FLNG market is forecast to witness a CAGR of 38% over 2017-2024.
Flexible volume contracts, competitive pricing, and existing production assets are some of the factors that will enhance FLNG market growth in the coming years. Many regions are looking forward for FLNG based plants installation, considering the high infrastructural cost of the onshore LNG plant installation.
Some of the prominent players operating in FLNG market include Höegh LNG, Woodside Petroleum, Exmar, Golar LNG, Mitsui O.S.K. Lines, Petronas, Ophir Energy, Noble Energy, Eni, Royal Dutch Shell, Excelerate Energy, Hyundai Heavy Industries, Samsung Heavy Industries, and Mitsubishi Heavy Industries, Ltd.