Floating Liquefied Natural Gas (FLNG) Market 2015-2025 : CAPEX Prospects for LNG FPSOs & FSRUs in a Lower Oil Price Climate

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Apr 28, 2016, 03:50 ET

LONDON, April 28, 2016 /PRNewswire/ -- Report Details
The global market for floating liquefied natural gas (FLNG) can be divided into two distinct areas: the LNG FPSOs (Liquefied Natural Gas Floating Production Storage and Offloading Vessel) and FSRUs (Floating Storage and Regasification Units). This report addresses both of these markets, quantifying the opportunity for growth expected over the next ten years. Traditionally, LNG facilities have been built onshore. Rising construction costs, times, and a reluctance to commit to long term facilities have resulted in increasing use of FLNG units as an alternative.

The oil price collapse in 2014 and into early 2015 has considerably impacted investment in FLNG. This report includes in-depth analysis and forecasting of the oil price, discusses the link between the price of oil and of LNG, and discusses other driving factors that will determine the price of LNG in the coming decade. All these factors are incorporated into visiongain's FLNG CAPEX forecasts. Visiongain values the global FLNG market at $6.19 billion in 2015.

Floating regasification vessels, in operation since 2005, allow for flexible transportation of LNG. Three companies, Excelerate Energy, Golar LNG and Höegh LNG have taken the majority of ownership of floating regasification vessels thus far, though several more have started to enter the market. There are currently 21 units operational in Asia, Europe, the Middle East, North America, South America, and Southeast Asia. Floating regasification vessels will be particularly useful in areas where there are, at present, major gas shortfalls (e.g. Egypt, India, Pakistan, Equatorial Guinea, and Bangladesh). The introduction of further floating regasification vessels will continue throughout the world, however, since they are less expensive per mmtpa (million metric tonnes per annum) of capacity, are built to deadline, and are faster to build than onshore facilities. They can be used as well for short periods (under 5 years) or long periods (over 5 years) and can be leased or owned, whereas onshore terminals are constructed for decades of use.

Floating liquefaction has been proposed as an economical solution to monetising stranded and associated gas. As of March 2015, there are no floating liquefaction vessels in operation, though the Exmar and Pacific Rubiales vessel will commence operation off the northern coast of Columbia in mid-2015. Petronas' first vessel is also due to become commercially operational in late 2015 off the coast of Malaysia. Generating the most attention in the FLNG market is Shell's Prelude, the most expensive FLNG vessel to date, due to come online by 2017 for use off the west coast of Australia. These three vessels represent the wide range of capacity floating liquefaction vessels can have; the Shell vessel is of the large variety, producing over 3 mmtpa of LNG. The Petronas vessel is of the medium-sized variety, and will produce 1-2 mmtpa, whereas the Exmar/Pacific Rubiales vessel will produce just .5 mmtpa. Despite only three liquefaction vessels in production there are a number of conceptual designs at different stages of project development due to come online throughout the forecast period. This report includes an expert interview with one of the companies driving new LNG FPSO design. Visiongain anticipates a handful of final investment decisions (FID) 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.

Why you should buy The Floating Liquefied Natural Gas (FLNG) Market 2015-2025
What is the future of the FLNG market? How will the great uncertainties in the LNG market impact spending on FLNG? How has the oil price collapse in 2014 impacted CAPEX on FLNG vessels? Who are the major companies involved in the market, and what is their market share? Visiongain's comprehensive analysis contains highly quantitative conte
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