Floating liquefied natural gas (FLNG) Market Size was valued at USD 27.27 billion in 2023. The Floating liquefied natural gas (FLNG) Market industry is projected to grow USD 53.54 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.8% during the forecast period (2024 - 2032).
The demand for floating liquefied natural gas (FLNG) is monetizing offshore gas reserves, flexibility and mobility and offers environmental benefits by minimizing the need for onshore infrastructure and reducing the environmental footprint reflecting their versatile applications across industries.
Natural gas is produced from underwater fields then processed and chilled to -162° Celsius (-260° Fahrenheit). This shrinks its volume by 600 times to create LNG. The advanced design of an FLNG facility packs a typical land-based LNG plant into a fraction of its normal size.
FLNG offers an environmentally friendly approach to monetization of offshore stranded gas fields or associated gas from oil production. Floating liquefied natural gas provides the opportunity to develop so-called “stranded gas” from marginal or remote fields, that would otherwise not be financially viable to develop in the foreseeable future.
FLNG may also have less impact on the environment than conventional LNG processing. Without the need for pipelines, coastal works and an onshore processing plant, disturbance to the seabed and the land is reduced.
Floating liquefied natural gas technology is analog to conventional onshore liquefied natural gas (LNG) as it helps to increase the development of gas resources to meet the growing demand. FLNG technology makes the production, liquefaction, and storage of natural gas possible at sea. LNG is transferred directly from the floating facility to specific carriers, for convenient shipping to countries around the world.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The surging demand for Natural Gas represents a pivotal driver that significantly shapes the dynamics of the Floating liquefied natural gas (FLNG) Market. The increasing global need for natural gas as a cleaner option to coal and oil for heating, power generation, and industrial processes is a main reason to drive the FLNG demand. As countries shift towards cleaner energy sources in order to decrease carbon emissions, there will be a greater demand for natural gas, including LNG produced through FLNG technology.
FLNG technology allows access to new and remote natural gas markets that cannot be easily accessible via conventional pipeline infrastructure. With the ability convert natural gas into liquefied form on floating vessels, FLNG projects can transport LNG to global markets, including regions with limited access to natural gas supplies. This growing demand for FLNG technology is due to expanding market reach.
FLNG projects are more cost-effective and time savings than to traditional onshore LNG facilities. FLNG offers a cost-effective solution for LNG production in specific situations due to its shorter development timelines, lower infrastructure needs, and reduced capital expenditure and operating costs. This makes it a competitive choice. Additionally, FLNG can also help in minimizing harm to ecosystems and decreasing the chances of environmental accidents.
Governments and industries are rapidly moving towards cleaner energy sources which address climate change and reduce air pollution. Natural gas is the least polluting burning fossil fuel, is highlighted as a key component of this transition. As many countries are look to diversify their energy mix and decrease dependence on carbon-intensive fuels, it shows a greater need for natural gas, and as a result FLNG will grow in demand.
The main drivers for the investment inflow to the FLNG market include the growing confidence in the ability to take the liquefaction process offshore, the growing amount of LNG production globally, and the ease of utilizing it with FSRUs. FLNG and the development of new pricing methods, and unconventional gas-to-LNG projects may lead towards a faster-moving, more diverse, and more flexible global LNG industry.
The strong arbitrage opportunity that used to exist between the price of natural gas in export markets, and the price of LNG in import markets, has weakened significantly over the past year, and whether higher price differentials return or not will determine the future of many LNG projects. Moreover, when it comes to relocation ability of FLNG, companies offer the option to lease, not buy. Nevertheless, the need to expand the LNG infrastructure value chain to connect natural gas exporting and importing markets still exists. FLNG will be a part of this solution, with FSRUs already assisting.
Opportunities in the FLNG market abound, particularly in unlocking new markets with untapped offshore reserves. Ongoing technological advancements, including liquefaction methods and modular designs, offer prospects for efficiency improvements and cost reductions. Furthermore, the integration of renewable energy sources with FLNG projects positions the industry at the forefront of clean energy production.
The Floating liquefied natural gas (FLNG) Market segmentation, based on type has been segmented into LNG FPSO, FSRU and Others. In 2022, the FSRU segment holds the largest Floating liquefied natural gas (FLNG) Market share. The growing demand for natural gas production, increasing global LNG trade and rising LNG import demand from power plant and automotive sectors are some of the factors driving the growth of FSRU market.
A Floating Storage Regasification Unit (FSRU) is a vital component required for transferring and transporting Liquefied Natural Gas (LNG) through the ocean. Thus, FSRU is a special type of ship used for LNG transfer. As LNG is a great fuel alternative that is both environmentally friendly and efficient, it's important to acknowledge the challenges involved in transporting it. Any mistakes in this process could result in the loss of precious lives and precious fuel, not to mention the further degradation of the ocean.
The LNG fuel is transported in a semi-cooled slushy state of -160 ÍŚC to the required destination. Before the gas is pumped into its storage systems, it needs to be heated back up to its original gaseous state. This reheating process is both expensive and time-consuming. To address this issue, a floating storage unit with a reliquefication plant has been developed as a solution.
FSRU vessels can be classified either as ships or offshore installations depending upon the design they incorporate. When the FSRU unit is installed in the ship itself, the construction of the vessel is similar to other LNG ships undergoing LNG trading operation with regular dry docking and complying to 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. Since the refurbished Floating Storage Regasification Unit (FSRU) would also be able to provide storing feasibilities of LNG, constant transference of the LNG cargo from LNG vessels would ensure that there is no storage depletion whatsoever.
Floating Storage and Regasification Unit offers countries new opportunities to import LNG. FSRU can be moored to a docking facility or out at sea. It is less expensive and can be deployed faster than an onshore solution. In most cases, a floating regasification solution is more cost-effective than a traditional land-based solution. FSRUs allow countries to transition away from coal and liquid fuels, bridging the gap of access to cleaner energy.
Based on End Use, the Floating liquefied natural gas (FLNG) Market is segmented into Small/Mid-Scale, Large Scale and others. In 2022, the automotive segment drove the Floating liquefied natural gas (FLNG) Market by holding a substantial market share during the assessment period. It is projected to register a highest growth rate during the projected timeframe. This high share of the automotive segment is owing to its strong foothold in the electric vehicle (EV) revolution.
Floating liquefied natural gas (FLNG)s, particularly neodymium iron boron floating liquefied natural gas (FLNG)s, are the vital components driving the propulsion systems of electric and hybrid vehicles. Their exceptional floating liquefied natural gas (FLNG)ic properties, including high strength and efficiency, significantly enhance the performance and energy efficiency of these eco-friendly automobiles.
Initial offshore FLNG developments are focused on building large scale facilities that can move and process large quantities of LNG, typically 5 million t/y and up, that require significant capital investment. However, global LNG prices have recently dropped considerably, and industry leaders are currently planning to mitigate project risks by developing small to midscale FLNG projects, limiting production capacities to 0.5-3 million t/y. One exception is Shell’s Prelude FLNG facility with a nameplate production capacity of 3.6 million t/y, located offshore NW Australia.
In large scale FLNG projects, the liquefaction facilities are mounted on a barge-like structure or a ship-shaped vessel (depending on the location) with the LNG stored in the hull underneath. In small to midscale FLNG projects, the liquefaction facility is built on a purpose-built vessel that is sized as a conventional LNG ship. The potential for loss of containment must also be addressed when considering hull fabrication.
A catastrophic tank failure could result in subsequent large-scale discharge of LNG into the sea. This would be followed by a rapid phase transition, which could cause serious structural damage to the offshore facility, with possible stability loss. Prevention of such an occurrence is a key safety requirement of offshore designs. The use of concrete for the hull provides benefits in the storage of cryogenic fluids as it retains its structural integrity when in contact with LNG, but traditional steel ship designs are cheaper to build.
By Region, the Floating liquefied natural gas (FLNG) market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America.
The major consumer of natural gas, driving the demand for FLNG projects is the Asia-Pacific region. Countries includes are Australia, Malaysia and Indonesia have major offshore gas reserves are playing main role to pushing the FLNG developments. The Middle East and Africa region has substantial offshore gas reserves, particularly in countries like Mozambique and Tanzania. FLNG projects in this region offer opportunities for monetizing these resources and meeting the growing energy needs.
Also, Europe has a mature gas market, but there are opportunities for FLNG projects in regions such as the North Sea and the Mediterranean, Europe focus on reducing greenhouse gas emissions and transiting to cleaner energy sources also supports the development of FLNG technology.
The Floating liquefied natural gas (FLNG) Market is offering a wide range of advanced and efficient floating liquefied natural gas (FLNG) products are the growing demand across various applications. This market is segmented by floating liquefied natural gas (FLNG) technology, capacity, and region. Key drivers of market growth include the rising adoption of floating liquefied natural gas (FLNG)s in sectors like Natural Gas Production, Marginal Gas Fields, Gas-to-Power Projects, and Emergency Gas Supply.
Furthermore, the Floating liquefied natural gas (FLNG) Market is dominated by major players such as ABB Ltd, Woodside Energy Group Ltd, Petroliam Nasional Berhad (PETRONAS), EXMAR, Hoegh LNG, Shell plc, Excelerate Energy, Inc., BASF SE, Golar LNG Limited, Mitsui O.S.K.Lines, and Eni S.p.A. These companies’ or players have a strong worldwide or the global presence and offer an different floating liquefied natural gas (FLNG) technology, including Small/Mid-Scale and Large Scale application needs.
They comapnies differentiate on factors like, quality, reliability, and innovation and cost effectiveness. They promote research and development activities and help in the introduction new floating liquefied natural gas (FLNG) technologies which help in expanding their product portfolios . They follow or adopt initiatives like mergers, acquisitions, partnerships, and collaborations with other industry participants to achieve the market share . The Floating liquefied natural gas (FLNG) Market has also felt the impact of the COVID-19 pandemic, leading to fluctuations in demand in various end-user sectors and supply chain disruptions.
However, as the global economy gradually recovers, the market is expected to rebound, driven by the growing reliance on floating liquefied natural gas (FLNG)s in essential technologies and the increasing emphasis on sustainability. The market's future prospects are promising, with floating liquefied natural gas (FLNG)s set to play a pivotal role in the ongoing technological transformations and innovations, making them an integral component of the evolving global industrial landscape.
ABB Ltd.: ABB Ltd. is a Swiss-Swedish corporation that produces electrical equipment products. It was established by the merger of Asea from Sweden and Brown, Boveri & Cie from Switzerland, both of whom were large electrical goods & engineering companies in their countries, simplified from Asea Brown Boveri to ABB. It has four business area: Electrification, Motion, Process Automation and Robotics & Discrete Automation along with 19 divisions.
The core values the company holds dear are courage, care, curiosity & collaboration, through which they have managed to keep their lead in the electrical goods market. Their aim is to be an enabler for a sustainable & resource-efficient future with their lead in electrification & automation. Until the year 2020, it was Switzerland’s largest employer.
Petroliam Nasional Berhad: PETROLIAM NASIONAL BERHAD (PETRONAS) established in 1974, is a key player in the Exploitation of Oil And Gas sector in KUALA LUMPUR, Malaysia. This LIMITED BY SHARES, PUBLIC LIMITED entity, with a detailed company profile available, features a robust structure with 10 directors and 2 shareholders. The comprehensive company profile includes the shareholding structure, a list of shareholders and directors, records of charges, and, when available, the latest financial statements, reflecting the company's transparency and commitment to industry excellence.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 21.27 billion |
| Market Size 2032 | USD 53.54 Billion |
| Compound Annual Growth Rate (CAGR) | 10.7% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2018 to 2022 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | technology, capacity, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Rest of World |
| Countries Covered | US, Canada, Germany, UK, France, Spain, Italy, Russia, China, Japan, India, South Korea, Brazil, Mexico, Argentina, South Africa, GCC countries |
| Key Companies Profiled | ABB Ltd., Woodside Energy Group Ltd, Petroliam Nasional Berhad (PETRONAS), EXMAR, Hoegh LNG, Shell plc, Excelerate Energy, Inc., BASF SE, Golar LNG Limited, Mitsui O.S.K.Lines, Eni S.p.A. |
| Key Market Opportunities | Growing market for LNG and unlocking gas reserves |
| Key Market Dynamics | Increase in demand for natural gas Monetization of offshore gas |
Frequently Asked Questions (FAQ) :
Floating liquefied natural gas (FLNG) Market Size US$ 21.27 Bn in 2023.
Growth rate of the Floating liquefied natural gas (FLNG) Market is 10.7% by 2032.
Asia-Pacific held the largest market share in the Floating liquefied natural gas (FLNG) Market.
Woodside Energy Group Ltd, Petroliam Nasional Berhad (PETRONAS), EXMAR, ABB Ltd., Hoegh LNG, Shell plc, Excelerate Energy, Inc., BASF SE, Golar LNG Limited, Mitsui O.S.K.Lines, Eni S.p.A.natural gas (FLNG)ic Products Co
FSRU had the largest market share in the Floating liquefied natural gas (FLNG) Market.
Large Scale had the largest market share in the Floating liquefied natural gas (FLNG) Market.
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Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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