No Floating Liquefaction Plants Operate in 2013, States Visiongain

14 Mar 2013 • by Natalie Aster

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 Hoegh 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.

According to the report “The Floating Liquefied Natural Gas (FLNG) Market 2013-2023” by Visiongain, 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.

Report Details:

The Floating Liquefied Natural Gas (FLNG) Market 2013-2023
Published: February, 2013
Pages: 209
Price: US$ 2,738.00

Despite only three vessels having received their final investment decisions, there are also a large number of designs at different stages of project development and Visiongain anticipates a number of final investment decisions will be taken over the next three years. The technical intricacies of constructing FLNG production facilities will ensure a build time of between three and five years depending on the design. There are more limitations on the LNG FPSO segment because of the unproven nature of the technology, high CAPEX and doubts about scalability. But assertions about the viability of the concept, from some of the most reputable companies in the oil and gas industry, represent an offer of assurance about the future.

More information can be found in the report “The Floating Liquefied Natural Gas (FLNG) Market 2013-2023” by Visiongain.

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