Allied Market Research

2024

Floating Liquefied Natural Gas (flng) Market

Floating Liquefied Natural Gas (FLNG) Market Size, Share, Competitive Landscape and Trend Analysis Report by Technology and by Capacity : Global Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: | Eswara Prasad
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FLNG terminals offer an offshore solution for processing, storing, and liquefying gas before loading it onto tankers for export. The FLNG system's operations and processes are used to transport natural gas reserves that are located offshore. The production, storage, liquefaction, and transfer of liquefied natural gas from offshore gas reserves to onshore gas reserves are all handled by floating terminal operations and processes. FLNG terminals provide a cost-effective solution for standard field development. Due to resource depletion, oil and gas companies can relocate their vessels to other fields. This lowers the cost of decommissioning as well as the cost of adding new fields. The traditional onshore liquefaction plant is placed on a liquefied natural gas tanker, which delivers the storage capacity, on offshore FLNG production vessels. FLNG terminals produce liquefied natural gas directly on floating systems off the coast. This reduces the amount of money needed to develop an onshore LNG system. FLNG terminals take up less space, lowering development costs and reducing disruption caused by space constraints. The ability to lease FLNG vessels provided by the Floating Storage Regasification Unit (FSRU) and Floating Production Storage and Offloading (FPSO) contractors allows smaller independent energy companies to avoid the cost of ordering and purchasing liquefaction equipment and facilities.

COVID-19 Impact analysis

COVID-19's unprecedented crisis in 2020 continues to have a visible and significant impact on the global workforce, industry, country, and economy. The pandemic has hampered the FLNG supply chain, particularly in terms of raw material for medical-grade elastomers. Polymer and reinforcing filler are used to make elastomers. Due to the pandemic, businesses were forced to close their doors, resulting in a shortage of raw materials. The export or import of elastomers or raw materials had to go through a strict sanitization process and had to stay at docks during the peak of the pandemic, causing a supply chain disruption that also hampered the growth of the industry. 

Top Impacting Factors

The market for FLNG terminals is expected to grow as new offshore floating projects emerge in response to rising gas demand. FLNG terminals provide the opportunity to reduce production costs while also increasing output, thereby improving project economics. Smaller independent energy companies with limited capital would be able to enter the market and meet global gas demand through the lease option.

Natural gas has been in high demand around the world because it is a preferred fuel for power generation in a variety of industries. Natural gas is more environmentally friendly, safer, and cost-effective than other fuels. It has the potential to reduce greenhouse gas (GHG) emissions significantly. In several countries, natural gas is routinely used to replace high-polluting fuels like coal and fuel oil in the power and industrial sectors. Natural gas is a versatile fuel. Its popularity is due in part to the environmental advantages it offers over other fossil fuels.

Market Trends

  • The growth of the FLNG market will be accelerated by rising demand for clean fuel technologies and a growing focus on a sustainable energy mix. Rapid depletion of fossil fuels, combined with ongoing efforts to reduce carbon emissions, will help businesses thrive. 
  • FLNG (Floating Liquefied Natural Gas) is an offshore vessel with all of the systems necessary to liquefy LNG offshore. FLNG offers a variety of handling machinery options to meet a variety of gas conditioning requirements.
  • FLNG serves as a mobile midstream asset, allowing it to avoid the high costs of onshore gas pipeline infrastructure. FLNG market growth will be aided by rising demand for clean fuel technologies and a greater focus on sustainable energy blends. The rapid depletion of fossil fuels, combined with ongoing carbon footprint reductions, will encourage positive company growth.
  • The FLNG industry will benefit from the ability to increase gas procurement and the amount of natural gas produced crops.
  • The growing confidence in the ability to take the liquefaction process offshore, the growing amount of LNG production globally, and the ease of use (with floating storage regasification units (FSRUs)) are the main drivers of investment inflow into the FLNG market.
  • Low capital costs, increased flexibility, and quick execution are the main factors driving the demand for FSRUs. Facilities discover widespread implementation across a number of countries with limited national energy resources. A floating storage regasification system is an LNG storage ship with a regasification plant that converts LNG to gas and transports it directly to the gas grid.
  • Australia's share of the FLNG sector has increased thanks to technological advancements in the development of high-performance, secure floating infrastructure. Megaprojects like The Prelude and PNG FLNG are among the industry's largest floating LNG projects in 2018.
  • The FLNG terminals market can be divided into five regions: North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. During the forecast period, the Middle East and Africa are expected to lead the FLNG terminals market, followed by Europe. The Middle East and Africa region's dominance can be attributed primarily to the presence of a large number of natural gas reverses in Qatar, Kuwait, and Saudi Arabia.

Key Benefits of the Report

  • This study presents the analytical depiction of the FLNG market along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the FLNG market share.
  • The current market is quantitatively analyzed to highlight the FLNG market growth scenario.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
  • The report provides a detailed FLNG market analysis based on competitive intensity and how the competition will take shape in coming years.                                       

Floating Liquefied Natural Gas (FLNG) Market Report Highlights

Aspects Details
Floating Liquefied Natural Gas (FLNG) Market By Technology
By Technology
  • LNG FPSO
  • FSRU
  • Others
Floating Liquefied Natural Gas (FLNG) Market By Capacity
By Capacity
  • Small/Mid-Scale
  • Large Scale
  • Others
Floating Liquefied Natural Gas (FLNG) Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
Key Market Players
Key Market Players

Mitsui O.S.K. Lines, Woodside Petroleum, Petronas, Golar LNG, Höegh LNG, Noble Energy, Ophir Energy, Eni, Royal Dutch Shell, Excelerate Energy, Exmar

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Floating Liquefied Natural Gas (FLNG) Market

Global Opportunity Analysis and Industry Forecast, 2023-2032