Tuesday, February 26, 2013

The global FLNG market to be worth $9.5bn

Floating Liquefied Natural Gas (FLNG) is composed of two segments: Floating Storage and Regasification Units (FSRUs) and LNG Floating Production Storage and Offloading Vessels (LNG FPSOs). The second segment is often referred to as the production side of the FLNG market.

Traditionally, LNG facilities have been built onshore, but this has become increasingly expensive in recent years, leading to the development of more cost effective solutions. Since 2005, Excelerate Energy, Golar LNG and Höegh LNG have taken ownership of FSRUs, and there are currently units operational in Europe, North America, South America, South East Asia and the Middle East. The introduction of further FSRUs will continue throughout the world, but particularly in areas where there are, at present, major gas shortfalls (e.g. India, Pakistan and Bangladesh). Strong, consistent CAPEX is expected throughout.

Floating liquefaction has been proposed as an economical solution to monetising stranded and associated gas, as well as a solution for the processing and liquefaction of onshore natural gas supplies. The latter proposal has arisen in answer to escalating onshore liquefaction costs and environmental, land use and royalty issues faced by onshore terminals. As of 2013, there are no floating liquefaction plants in operation, though Shell and Petronas have taken final investment decisions on projects for Australia and Malaysia. There is also a 0.5 million tonnes per annum floating liquefaction, regasification, storage and offloading vessel (FLRSU) approved for construction to be based offshore Colombia. 

No comments:

Post a Comment

Post a Comment