FLNG Market Size By Technology (LNG FPSO, FSRU), By Capacity (Small/Mid-Scale, Large Scale), Industry Analysis Report, Regional Outlook, Price Trends, Competitive Market Share & Forecast, 2017-2024
Published Date: Jul 2017 | Report ID: GMI1242 | Authors: Ankit Gupta, Aditya Singh Bais
FLNG Market size for 2016 was valued over USD 10 billion and is set to exceed 300 MTPA by 2024.
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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.
|Base Year:||2016||Market Size in 2016:||10 Billion (USD)|
|Historical Data for:||2013 to 2016||Forecast Period:||2017 to 2024|
|Forecast Period 2017 to 2024 CAGR:||25%||2024 Value Projection:||78 Billion (USD)|
|Pages:||200||Tables, Charts & Figures:||333|
|Geographies covered (20):||U.S., UK, Russia, China, Australia, Indonesia, Malaysia, India, Pakistan, UAE, Turkey, Egypt, Congo, Equatorial Guinea, Cameroon, Mozambique, Ghana, Brazil, Chile, Colombia|
|Segments covered:||Technology, Capacity and Region|
|Companies covered (17):||Shell, Petronas, Samsung Heavy Industries, Hyundai Heavy Industries, DSME and Associates, Exmar, Woodside Petroleum, Golar LNG, Höegh LNG, Excelerate Energy, Black & Veatch, Wison Offshore & Marine, Technip, Saipem, KBR Inc., The Linde Group, Noble Energy Inc.|
|Pitfalls & Challenges:||
Floating Liquefied Natural Gas Market, By Technology
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.
Floating Liquefied Natural Gas Market, By Capacity
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.
Floating Liquefied Natural Gas Market, By Region
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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.
Competitive Market Share
Key participants functioning across the industry include Höegh LNG, Golar LNG, Excelerate Energy, Eni, Exmar, Ophir Energy, Royal Dutch Shell, Mitsui O.S.K. Lines, Petronas, Woodside Petroleum and Noble Energy. In addition, key shipbuilders operating in the industry include DSME and Associates, Samsung Heavy Industries, Mitsubishi Heavy Industries and Hyundai Heavy Industries.
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.
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