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The floating LNG power vessel market is fast-paced and driven by the global demand for flexible and cost-effective power-generating solutions, particularly in remote or off-grid areas. One of the key factors that shape the dynamics of the Floating LNG Power Vessel market is its growing worldwide demand for cleaner energy substitutes. According to research, compared to other fossil fuel types, natural gas produces fewer greenhouse gases and pollutants. Hence, it is considered as a cleaner burning fuel. To this end, floating LNG power vessels provide an agile solution for providing clean power to places where electricity access is limited as the world seeks to reduce carbon emissions and transition into more sustainable sources of energy.
Infrastructure challenges in remote or isolated regions greatly influence dynamics within the Floating LNG Power Vessel market. These areas are often devoid of the necessary infrastructure for traditional power plants, but floating LNG power vessels can come in handy due to their flexibility and mobility. Moreover, the rising popularity of Liquefied Natural Gas (LNG) as a versatile and accessible source of energy also drives the market dynamics. For instance, because it is easily transportable and can be stored over long periods, LNG can be used as fuel for floating power vessels that operate across different regions. Accordingly, this trend has been embraced by the market, which supplies various capacities of LNG-powered vessels with reference to different requirements in terms of electricity amounts and operating conditions. These are, therefore, versatile devices suitable for temporary supply during peak hours or emergency electric generation services.
Moreover, global attempts at offshore electrification contribute to dynamics within floating LNG power vessel markets. Industries such as oil exploration & production activities, shipping activities including maritime activity, and offshore construction projects require reliable sources of electricity located far from main electricity grids. The competitive forces within these markets also direct their dynamic behaviors because industry front runners engage in R&D to enhance features, efficiency, and safety measures in the vessels they provide. In summary, several factors are responsible for the dynamics of the Floating LNG Power Vessel Market, which include the global need for cleaner energy, infrastructural challenges in secluded regions, adaptability of LNG as a source of fuel, and competitive forces within the industry. As such, floating LNG power vessels are expected to play a significant role in meeting changing energy demands across various sectors as the world continues to search for sustainable and flexible power solutions.
Floating LNG Power Vessel Market Highlights:
The global floating LNG power vessel market has been estimated to drive at a CAGR of 2.10% over the projected years 2024–2032, with a value of USD 1123.21 million.
Floating LNG Power Vessel Market Scenario
LNG is considered the cleanest fossil fuel. It is one of the greatest solutions for reducing greenhouse gas emissions and combating global warming. As a result, governments worldwide are raising awareness and supporting the use of LNG to minimize air pollution and related emissions. LNG is considered a fantastic alternative that may assist most industrial players in bringing their facilities in accordance with the present environmental laws, which are expected to become even more strict in the future. Such factors may contribute to driving the growth during the forecasting years.
Fires and explosions are the most dreaded accident situations in floating LNG power vessels. As a result, any equipment that handles, processes or stores components such as risers, pipes, separators, heat exchangers, turbines, compressors and pumps can be a source of unwanted release, resulting in fires and explosions. Since the escape routes available in the case of an accident are limited, the reliability of the safety systems for the floating LNG system is more critical than that of a land-based facility.
Floating LNG Power Vessel Market Key Players
The Key Players operating in the Global Floating LNG Power Vessel Market are Wartsila (Finland), Mitsubishi Heavy Industries, Ltd (Japan), Samsung Heavy Industries Co., Ltd (South Korea), General Electric (US), Siemens (Germany), Man Diesel & Turbo SE (Germany), Waller Marine Inc (US), Power Barge Corporation (US), Chiyoda Corporation (Japan), Hyundai Heavy Industries Co., Ltd. (South Korea), IHI Corporation (Japan), and Caterpillar, Inc (US).
Industrial News:
By January 2023, Finland’s first FSRU-based terminal located in the deep harbor at Inkoo will be ready for commercial operations as it incorporates GasgridFinland’s gas transmission network with the LNG floating storage and regasification unit (FSRU) Model. The LNG floating terminal vessel is 291 m long and holds about 68,000 tons of liquefied natural gas (LNG) when fully loaded, which corresponds to around 1,050 GWh of energy.
In October 2022, Karpowership from Turkey was in discussions with four European countries regarding the delivery of power ships. To cope with power shortages during winter, European countries are discussing with the company on how they can acquire floating LNG power plants that have a capacity of 2 GW each. With a total generating capacity of two gigawatts through eight energy ships, the firm has the potential to provide electricity to almost five million households or serve district heating systems in four nations. Its largest ship has an installed capacity of five hundred megawatts.
Petronas had contracted Kejuruteraan Asastera(KAB) to construct and commission a $52.2m worth 52MW floating LNG power plant by 2023.The floating LNG power plant would be situated at Sabah. Development work is set to start in Q2-2023. And finally, Sri Lanka has entered into agreement with Asian Development Bank to initiate feasibility study for Floating LNG Power Plant in year-2022 that could help diversify its energy mix.
June 2022 saw ExcelerateEnergy Inc announce plans to supply Power Barge required for Buoyant Grids and Floating Power Plants within mainland Europe while also developing an LNL-to-Power project together with Exxon Mobil Corp. around Vlora’s Albansian Port.
The Year 2020
- LNG adoption is likely to increase due to the global emission norms. The LNG being a comparatively cleaner fuel fulfills emission regulations. In 2020, IMO's reduced sulfur content in marine fuel came into force, likely to result in the adoption of LNG as a bunker fuel. Offshore West Africa is also seeing an increase in oil and gas activity that, in turn, will present opportunities in the FLNG Power Plant market as well.
December 2021
- In December 2021, Wison Offshore and Marine signed a MoU with MAN Energy Solutions for power solutions development. The two parties will establish cooperation for power barge and floating LNG-to-power projects, which will become a good demonstration of each party's advantage in technology and application.
Many major players such as Wartsila, Mitsubishi Heavy Industries Ltd, and General Electric are actively focusing on signing contracts and agreements with utilities and industries to provide floating LNG power vessels. For instance, in January 2019, Siemens signed a contract with Seaboard Corp (Bermuda) to supply a 145 MW power barge and is expected to start operations from 2021. Such developments in the market are expected to drive the growth of the global floating LNG power vessel market during the forecast period.
The global floating LNG power vessel market has been segmented based on vessel type, power output, and component. Based on vessel type, the global market is divided into power barge and power ship. The global power ship segment is expected to hold the larger share of the market during the forecast period. However, LNG power barges also hold a substantial share of the market. Based on power output, the global market is segmented into up to 70 MW, 70 MW–350 MW, and above 350 MW. The 70 MW–350 MW segment is expected to grow with the highest CAGR during the forecast period as the engines in this segment are mostly powered by liquid fuel or gas. Based on component, the global floating LNG power vessel market has been divided into power generation systems and power distribution systems. The power generation system segment is expected to hold the largest share within the global market due to the increasing demand for the integrated IC engine and gas turbine-powered vessels.
Floating LNG Power Vessel Market Segmentation
The Global Floating LNG Power Vessel Industry is expected to witness high growth during the forecast period owing to the increasing demand for electricity in developing countries leading to the increasing demand for floating LNG plants. This is expected to drive the demand for marine vessel power plants during the forecast period.
The floating power vessels powered by LNG are specialized offshore support vessels that use LNG to generate electricity through onboard components such as steam generators and gas turbines. The lack of power generation infrastructure and shortage of capital investments is the primary factor driving the demand for such temporary power generation solutions.
Based on region, the global floating LNG power vessel industry is segmented into Asia-Pacific, North America, Europe, the Middle East & Africa, and South America. Asia-Pacific holds the largest floating LNG power vessel market share due to an increase in the increase in demand for electricity in the region.
Intended Audience
- Government and research organization
- Consulting companies in the floating LNG power vessel market
- Raw material suppliers
- Research consultants
- Investors and shareholders
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