FLNG Market Size & Share 2017 - 2024
Market Size by Technology (LNG FPSO, FSRU), by Capacity (Small/Mid-Scale, Large Scale), Industry Analysis Report, Regional Outlook, Price Trends, & Forecast.
Report ID: GMI1242
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Published Date: July 2017
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Report Format: PDF
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Authors:
Ankit Gupta, Abhishek Chopra
FLNG Market Size
FLNG Market size for 2016 was valued over USD 10 billion and is set to exceed 300 MTPA by 2024.
Increasing demand for clean fuel technologies along with rising focus toward sustainable energy mix will accelerate the FLNG market growth. Rapid depletion of fossil fuel coupled with ongoing measures to reduce carbon footprint will facilitate positive business growth. As per the International Energy Agency (IEA), the global NG demand witnessed a 4.6% rise in 2018 when compared with 2017 levels. The U.S. and China are the largest contributors for the rise in gas production with a share of over 50% of the total increase.
Ability to accelerate the gas procurement along with surge in number of natural gas fired plants will foster the FLNG market. In 2017, the Indonesian government introduced a program to develop the LNG import infrastructure and gas-fired power plants to improve their electrification targets. Rapid development of various projects along with increasing consumption of gas will enhance the industry outlook. In 2017, Keppel built the Hilli Episeyo which was the first converted vessel, with gross tonnage of 120,000 and a length of 300 meters.
FLNG Market Analysis
Low investment cost, enhanced flexibility and fast track implementation are some of the key factors stimulating the demand for FSRU. The facilities find a wide application across several countries which lack domestic energy reserves. A floating storage regassification unit is an LNG storage vessel that comprises of a regasification plant that converts LNG into gaseous form and supplies it directly to the gas network.
The LNG market will onlook growth on account of surging demand for natural gas mainly across high consumption regions including Asia Pacific and Middle East. Cost efficiency when compared with onshore liquefaction plants, ability to relocate to several places along with adaptability to operate in varied well depth are few key features that will encourage the product adoption. These ships can be employed for transportation, recovery, storage and various end-use applications of marginal gas fields and offshore associated-gas resources.
Small/Mid-Scale capacity ships will witness rapid deployment on account of low capital cost and short development schedule. The facilities are mostly deployed in stranded reserves that are economically unfeasible to produce through other units. Ongoing government projects and funding activities in order to enhance the national infrastructure and promote the construction of new floating import units will complement the industry landscape. Furthermore, rising demand for flexible and cost-effective LNG distribution units will further enhance the business outlook.
The large-scale capacity will grow over 25% by 2024. Increasing gas consumption owing to shifting population toward urban areas along with large capital investments involved in pipeline projects will stimulate product demand. Easy relocation to newer fields upon the exhaustion of primary fields will further enhance the business landscape. In addition, ongoing discoveries across offshore fields along with growing demand for primary energy will enhance the industry outlook.
The Asia Pacific FLNG market is set to grow on account of accelerating investment toward infrastructure development along with substantial government support. The Government of India is seeking to raise the share of NG in the primary energy mix to 15% from the prevailing 6%, leading to a robust growth of natural gas market by 2030 with LNG being the largest contributor.
Africa FLNG market will witness substantial growth on account of ongoing government initiatives along with significant financial support for the development of stranded gas reserves across the region. Increasing energy demand coupled with rising number of projects across Mozambique will enhance the business outlook. In 2017, the government of Mozambique announced to provide funds for the Coral floating liquid natural gas infrastructure project across the Rovuma basin which is anticipated to start its commercial operations by 2022.
FLNG Market Share
Key participants functioning across the industry include
In addition, key shipbuilders operating in the industry include
Stringent environment regulations concerning the reduction of sulphur and carbon content, applicable worldwide are compelling the companies to develop new ecofriendly designs and modifications in existing units. Robust demand for new models will amplify the competition and favor positive business growth.
Floating Liquefied Natural Gas Industry Background
Floating liquified natural gas is an offshore vessel designed to enable the production and development of offshore NG resources. It provides an economically efficient and ecofriendly solution and can be relocated or redeployed. It can act as a liquefaction facility and processing platform thereby eliminating the cost of production facilities, site preparation and pipelines. The ships are used for short or prolonged periods and can be leased or owned as unlike the onshore terminals which are developed for decades of use. Large cost incurred in onshore development terminals coupled with constraint with building long term facilities will complement the industry landscape.
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →