Floating Liquefied Natural Gas (FLNG) systems are entire facilities that deal with the offshore storage, processing, and transport of LNG. As a result, gas may be produced closer to the source without having to install miles of pipes to deliver it to the closest coastal facility because these enormous vessels use the same technologies as land-based LNG plants. This processing brings up enormous new potential sources that were previously too difficult or expensive to exploit. Some sources are miles out at sea. They cut back on schedules and development expenditures. Moreover, FLNG solutions are being considered for exporting near-shore gas reserves or gas from an on-land pipeline network by locating the LNG production facility near shore.
Natural gas is one of the cleanest and safest energy sources currently available. When burned, it produces half the amount of carbon dioxide as coal, and less than 10% of air pollutants due to which over the last few years, demand for natural gas has risen dramatically. In 2000, less than 100 million tons of LNG per year was being produced. Growth in reliance on fuel in Asia and Africa follows a surge in production in the U.S., implying its usage is expected to continue rising over the next few years. Thus, it is crucial to create new technology to access larger offshore gas reserves.
One of the benefits of floating LNG-producing processing and storage ships is that they help to reduce an environmental footprint. Unlike conventional offshore LNG plants, these facilities do not need transport pipelines to get their materials to the shore. Instead, they do everything from processing to liquefying the gas onboard the vessel and offloading the materials to tankers for transport. This reduces land disturbance and decreases the impacts on coastal habitats.
On top of that, floating LNG plants can provide economic benefits. Additional business opportunities will provide more chances for other countries to develop stranded offshore gas fields in their respective areas. Most importantly, floating LNG facilities are versatile. Since pipelines are not required to get the material to shore, these plants can easily be moved to other locations for more development. Best of all, this eliminates the cost of recycling a structure. With LNG demand continuing to rise, and FLNG facilities demonstrating a viable and economical way to produce gas from previously unattainable places, more projects are planned around the globe over the next decade.
Developing a complete new floating LNG (FLNG) project standalone is quite an expensive and time-consuming project. As a result, companies are looking to collaborate and acquire with other industry players to achieve efficiency & competitive advantage and reduce cost of ownership. In August 2022, Eni acquired Export LNG Ltd, which owns the Tango FLNG floating liquefaction facility, from Exmar group. The facility will be used by Eni in the Republic of Congo, as part of the activities of the natural gas development project in the Marine XII block, in line with Eni's strategy to leverage gas equity resources. Similarly, in June 2022, ABB and Wison Offshore & Marine (WOM) signed a memorandum of understanding to collaborate on floating liquefied natural gas (FLNG) projects. In June 2022, Italian gas group Snam acquired floating storage regasification unit (FSRU) Golar Tundra from Bermuda-based LNG shipper Golar LNG in a deal worth USD$350 million.
In comparison to a typical on-shore LNG system, a FLNG facility produces liquefied natural gas directly on the off-shore floating system, which results in a significantly shortened value chain that is predicted to hamper the floating LNG market growth in the coming years. Further, the monetization of reserves may be negatively impacted by a lack of infrastructure in some areas, notably developing nations, which ultimately presents a hurdle for the market. Moreover, difficulties in planning and building the floating LNG terminal facilities could restrain market expansion.
FLNG is becoming increasingly popular in developing countries, due to its low start-up costs and dominating the market. Compared to the onshore counterparts, they require little construction or investment, and can therefore provide access to LNG much faster. Emerging economies such as Bangladesh, Vietnam, Pakistan, Philippines, Ghana, and South Africa are looking to take advantage of the benefits offered by the FLNG model. In November 2022, UTM Offshore signed an agreement for the Front-End Engineering Design (FEED) for Nigeria’s first FLNG facility with engineering firms such as KBR, JGC Corporation, and Technip Energies. Similarly, in 2022, AG&P announced its plan to commission the Philippines’ first LNG import terminal as part of the company’s strategy to operate five LNG regasification facilities across Asia by 2025.
New product launches to flourish the market
Demand for LNG floating storage and regasification units (LNG-FSRUs) increased sharply in 2022, with Europe facing an energy supply squeeze as Russia has progressively cut pipeline gas flows. Demand for terminals in Europe is so strong that it could make it less affordable for emerging nations to use FSRUs . In addition, countries such as Germany are putting greater emphasis on FLNG projects to reduce their dependence on Russia to support their domestic oil demands. In April 2022, Germany released nearly EUR3 billion (~USD$3.2 billion) to acquire FLNG import terminals, as it seeks to move away from dependence on Russian gas. Similarly, in December 2022, Excelerate Energy, Inc announced its plan to float the storage and regasification unit ("FSRU"), the Exemplar, anchored at Finland’s port of Inkoo, heralding a major move in the country’s goals to reduce dependence on Russian natural gas.
Companies operating in the oil and gas sectors are looking to expand their operations through setting-up new facilities supporting FLNG technology. In December 2022, Petronet LNG Ltd, India's largest liquefied natural gas importer, announced its plan to set up a FLNG receipt facility at Gopalpur port in Odisha. The company signed an agreement with Gopalpur Ports Ltd for the facility that will have a capacity of about 4 million tons per annum. Similarly, in April 2022, Malaysia’s national energy company Petronas, and the Sabah Oil & Gas Development Corporation (SOGDC) teamed up to build the nation’s first nearshore FLNG facility. Further, Germany completed the construction of its first floating terminal for LNG at the North Sea port of Wilhelmshaven. Meanwhile, Israel's NewMed Energy is building a FLNG terminal to further develop its Leviathan gas field off Israel's Mediterranean coast.
Segmental Overview
By type: The growth of gas resources to meet the expanding global demand is accelerated by the use of floating liquefied natural gas (FLNG) technology, which is an addition to conventional onshore liquefied natural gas (LNG). The production, liquefaction, and storage of natural gas at sea are all made possible by FLNG technology. For convenient shipping to nations across the world, LNG is delivered straight from the floating facility to particular ships. Produced from submerged fields, natural gas is treated and cooled to a temperature of 162 degrees Celsius (-260 degrees Fahrenheit). To make LNG, this causes the volume to be shrunk 600 times. A standard land-based LNG plant may be squeezed into a small space attributable to an FLNG facility's innovative design.
By application: A Floating Storage Regasification Unit (FSRU) is a vital component required while transiting and transferring Liquefied Natural Gas (LNG) through the oceanic channels. Therefore, FSRU can be termed as a special type of ship used for LNG transfer. When the FSRU unit is installed in the ship itself, the construction of the vessel is similar to other LNG ships undergoing LNG trading operations with regular dry docking and complying with all the required international marine safety standards.
The major advantage of such installation is that the heating and liquefaction process can be carried out within the vessel itself without having to unload the fuel in its semi-frozen slushy state. FPSO (Floating, Production, Storage, and Offloading) is a floating vessel an offshore production facility that contains processing equipment and storage for producing hydrocarbons. After processing oil and gas, an FPSO stores them safely before offloading them. Typically, an FPSO looks like a ship-shaped vessel, with processing equipment above the vessel’s deck and hydrocarbon storage below the vessel’s deck (in the double hull). While a new-build FPSO is designed & constructed from scratch, a converted FPSO is made by modifying an existing vessel, such as a crude oil shuttle tanker.
Competition Analysis
Competitive analysis and profiles of the major players in the FLNG market, such as Excelerate Energy, Inc., Royal Dutch Shell, Samsung Heavy Industries Ltd, dsme (daewoo shipbuilding & marine engineering co., ltd.), chiyoda corporation, Petronet LNG Ltd, , Kawasaki Kisen, Höegh LNG, Golar LNG Limited, Eni S.p.A., JGC HOLDINGS CORPORATION, and Petroliam Nasional Berhad are provided in this report.
Natural gas is one of the cleanest and safest energy sources currently available. When burned, it produces half the amount of carbon dioxide as coal, and less than 10% of air pollutants due to which over the last few years, demand for natural gas has risen dramatically. In 2000, less than 100 million tons of LNG per year was being produced. Growth in reliance on fuel in Asia and Africa follows a surge in production in the U.S., implying its usage is expected to continue rising over the next few years. Thus, it is crucial to create new technology to access larger offshore gas reserves.
One of the benefits of floating LNG-producing processing and storage ships is that they help to reduce an environmental footprint. Unlike conventional offshore LNG plants, these facilities do not need transport pipelines to get their materials to the shore. Instead, they do everything from processing to liquefying the gas onboard the vessel and offloading the materials to tankers for transport. This reduces land disturbance and decreases the impacts on coastal habitats.
On top of that, floating LNG plants can provide economic benefits. Additional business opportunities will provide more chances for other countries to develop stranded offshore gas fields in their respective areas. Most importantly, floating LNG facilities are versatile. Since pipelines are not required to get the material to shore, these plants can easily be moved to other locations for more development. Best of all, this eliminates the cost of recycling a structure. With LNG demand continuing to rise, and FLNG facilities demonstrating a viable and economical way to produce gas from previously unattainable places, more projects are planned around the globe over the next decade.
Developing a complete new floating LNG (FLNG) project standalone is quite an expensive and time-consuming project. As a result, companies are looking to collaborate and acquire with other industry players to achieve efficiency & competitive advantage and reduce cost of ownership. In August 2022, Eni acquired Export LNG Ltd, which owns the Tango FLNG floating liquefaction facility, from Exmar group. The facility will be used by Eni in the Republic of Congo, as part of the activities of the natural gas development project in the Marine XII block, in line with Eni's strategy to leverage gas equity resources. Similarly, in June 2022, ABB and Wison Offshore & Marine (WOM) signed a memorandum of understanding to collaborate on floating liquefied natural gas (FLNG) projects. In June 2022, Italian gas group Snam acquired floating storage regasification unit (FSRU) Golar Tundra from Bermuda-based LNG shipper Golar LNG in a deal worth USD$350 million.
In comparison to a typical on-shore LNG system, a FLNG facility produces liquefied natural gas directly on the off-shore floating system, which results in a significantly shortened value chain that is predicted to hamper the floating LNG market growth in the coming years. Further, the monetization of reserves may be negatively impacted by a lack of infrastructure in some areas, notably developing nations, which ultimately presents a hurdle for the market. Moreover, difficulties in planning and building the floating LNG terminal facilities could restrain market expansion.
FLNG is becoming increasingly popular in developing countries, due to its low start-up costs and dominating the market. Compared to the onshore counterparts, they require little construction or investment, and can therefore provide access to LNG much faster. Emerging economies such as Bangladesh, Vietnam, Pakistan, Philippines, Ghana, and South Africa are looking to take advantage of the benefits offered by the FLNG model. In November 2022, UTM Offshore signed an agreement for the Front-End Engineering Design (FEED) for Nigeria’s first FLNG facility with engineering firms such as KBR, JGC Corporation, and Technip Energies. Similarly, in 2022, AG&P announced its plan to commission the Philippines’ first LNG import terminal as part of the company’s strategy to operate five LNG regasification facilities across Asia by 2025.
New product launches to flourish the market
Demand for LNG floating storage and regasification units (LNG-FSRUs) increased sharply in 2022, with Europe facing an energy supply squeeze as Russia has progressively cut pipeline gas flows. Demand for terminals in Europe is so strong that it could make it less affordable for emerging nations to use FSRUs . In addition, countries such as Germany are putting greater emphasis on FLNG projects to reduce their dependence on Russia to support their domestic oil demands. In April 2022, Germany released nearly EUR3 billion (~USD$3.2 billion) to acquire FLNG import terminals, as it seeks to move away from dependence on Russian gas. Similarly, in December 2022, Excelerate Energy, Inc announced its plan to float the storage and regasification unit ("FSRU"), the Exemplar, anchored at Finland’s port of Inkoo, heralding a major move in the country’s goals to reduce dependence on Russian natural gas.
Companies operating in the oil and gas sectors are looking to expand their operations through setting-up new facilities supporting FLNG technology. In December 2022, Petronet LNG Ltd, India's largest liquefied natural gas importer, announced its plan to set up a FLNG receipt facility at Gopalpur port in Odisha. The company signed an agreement with Gopalpur Ports Ltd for the facility that will have a capacity of about 4 million tons per annum. Similarly, in April 2022, Malaysia’s national energy company Petronas, and the Sabah Oil & Gas Development Corporation (SOGDC) teamed up to build the nation’s first nearshore FLNG facility. Further, Germany completed the construction of its first floating terminal for LNG at the North Sea port of Wilhelmshaven. Meanwhile, Israel's NewMed Energy is building a FLNG terminal to further develop its Leviathan gas field off Israel's Mediterranean coast.
Segmental Overview
By type: The growth of gas resources to meet the expanding global demand is accelerated by the use of floating liquefied natural gas (FLNG) technology, which is an addition to conventional onshore liquefied natural gas (LNG). The production, liquefaction, and storage of natural gas at sea are all made possible by FLNG technology. For convenient shipping to nations across the world, LNG is delivered straight from the floating facility to particular ships. Produced from submerged fields, natural gas is treated and cooled to a temperature of 162 degrees Celsius (-260 degrees Fahrenheit). To make LNG, this causes the volume to be shrunk 600 times. A standard land-based LNG plant may be squeezed into a small space attributable to an FLNG facility's innovative design.
By application: A Floating Storage Regasification Unit (FSRU) is a vital component required while transiting and transferring Liquefied Natural Gas (LNG) through the oceanic channels. Therefore, FSRU can be termed as a special type of ship used for LNG transfer. When the FSRU unit is installed in the ship itself, the construction of the vessel is similar to other LNG ships undergoing LNG trading operations with regular dry docking and complying with all the required international marine safety standards.
The major advantage of such installation is that the heating and liquefaction process can be carried out within the vessel itself without having to unload the fuel in its semi-frozen slushy state. FPSO (Floating, Production, Storage, and Offloading) is a floating vessel an offshore production facility that contains processing equipment and storage for producing hydrocarbons. After processing oil and gas, an FPSO stores them safely before offloading them. Typically, an FPSO looks like a ship-shaped vessel, with processing equipment above the vessel’s deck and hydrocarbon storage below the vessel’s deck (in the double hull). While a new-build FPSO is designed & constructed from scratch, a converted FPSO is made by modifying an existing vessel, such as a crude oil shuttle tanker.
Competition Analysis
Competitive analysis and profiles of the major players in the FLNG market, such as Excelerate Energy, Inc., Royal Dutch Shell, Samsung Heavy Industries Ltd, dsme (daewoo shipbuilding & marine engineering co., ltd.), chiyoda corporation, Petronet LNG Ltd, , Kawasaki Kisen, Höegh LNG, Golar LNG Limited, Eni S.p.A., JGC HOLDINGS CORPORATION, and Petroliam Nasional Berhad are provided in this report.
Floating LNG Terminal Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Application |
|
 By Region |
|
 Key Market Players | dsme (daewoo shipbuilding & marine engineering co., ltd.), Petronet LNG Ltd, JGC HOLDINGS CORPORATION, Excelerate Energy, Inc., Samsung Heavy Industries Ltd, Golar LNG Limited, Royal Dutch Shell, Höegh LNG, Kawasaki Kisen, chiyoda corporation |
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