Floating Storage Regasification Unit (FSRU) Market size is set to grow by USD 805.25 mn from 2023-2027, Cost competitiveness of FSRU boost the market- Technavio

NEW YORK, March 22, 2024 /PRNewswire/ -- The global floating storage regasification unit (FSRU) market size is estimated to grow by USD 805.25 mn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 7.88% during the forecast period. A Floating Storage Regasification Unit (FSRU) is a hybrid marine vessel used for transporting LNG from production sites to various regions. Amid outbreaks and lockdowns, FSRUs provide energy solutions, quick LNG transportation, and commercial flexibility. Regasification occurs at ports or at sea, supplying low-carbon energy to end-users. Despite the oil industry's dominance, FSRUs offer inexpensive alternatives and contribute to market growth, even during supply chain disruptions.

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Research Analysis

The Floating Storage Regasification Unit (FSRU) market is experiencing significant growth in various sectors, including the energy, transportation, and marine industries. FSRUs play a crucial role in the supply chain by providing capacity storage and LNG regasification services, enabling the delivery of natural gas to markets where it is needed. The transportation sector benefits from FSRUs as they allow for the flexible import of natural gas, reducing reliance on piped gas infrastructure. In the marine sector, FSRUs offer the advantage of being deployable to different locations, making them an attractive solution for countries with limited onshore regasification facilities. The market growth for FSRUs can be attributed to their versatility, cost-effectiveness, and ability to meet the increasing demand for natural gas in various industries.

Market Segmentation

This Floating Storage Regasification Unit (FSRU) Market report extensively covers market segmentation by End-user (Power generation, Industrial, Others) Type (Newly built, Converted) Geography (Middle East and Africa, APAC, Europe, North America, South America) - Download Now

Market Segmentation by End-user

The Floating Storage Regasification Unit (FSRU) market is experiencing significant growth due to the increasing demand for LNG worldwide. FSRUs enable the offloading, storage, and regasification of LNG at sea, making it a convenient and flexible solution for importing and distributing LNG. In addition, the introduction of floating power plants, which generate electricity using LNG as fuel, further supports the transition from conventional energy sources. While the use of LNG for power generation offers advantages, the cost of converting existing power projects to use LNG remains high. Despite this challenge, the FSRU market continues to expand, driven by the need for cleaner and more efficient energy solutions.

Geographic Landscape

The Floating Storage Regasification Unit (FSRU) market in the Middle East and Africa (MEA) is experiencing robust growth, driven by an increasing number of FSRU projects in the region. In 2022, major FSRU adopters in Europe, Middle East, and Africa (EMEA) included Egypt, Ghana, UAE, and Kuwait. Egypt, with its large population, turned to FSRUs due to depleting domestic gas reserves, which were unable to meet the country's growing demand. FSRUs have become a crucial solution for Egypt to bridge the demand-supply gap and ensure energy security.

Drivers

The Floating Storage Regasification Unit (FSRU) market represents a significant growth sector in the global energy industry. FSRUs utilize hybrid ships to transport Liquefied Natural Gas (LNG) from production sources to various regions, addressing fuel shortages and power requirements. These vessels offer quick transportation, contributing to the increasing adoption of FSRUs. Docked in ports or at sea, LNG is regasified, integrated into transmission networks, and delivered to end-users. Despite crude oil's dominance in the fuel industry, the FSRU market's potential lies in its ability to provide cleaner, more efficient energy solutions.

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Challenges

The offshore gas sector has experienced significant growth, with natural gas production from offshore fields increasing by 50% since 2000. Floating Storage Regasification Units (FSRUs) play a crucial role in this industry by facilitating the import and regasification of LNG from offshore sources. However, the crude oil price fall led to a halt in many deepwater projects, affecting the FSRU market. Nevertheless, as oil prices stabilized, offshore production resumed, particularly in the US with government support. The FSRU market is poised to rebound as offshore gas exploration and production continue to expand.

Research Analyst Overview

The Floating Storage Regasification Unit (FSRU) market is experiencing significant growth due to the increasing demand for liquefied natural gas (LNG) as a cleaner and more efficient energy source. FSRUs are essential infrastructure components in the LNG value chain, enabling the regasification of LNG back into its original gaseous state for distribution to end-users. Capacity expansion and new projects are driving the market, with China, India, and other countries investing in FSRUs to meet their energy needs. The cost-effective nature of FSRUs, which eliminates the need for onshore regasification facilities, further boosts their adoption. The shift towards sustainable energy sources and the strategic location of FSRUs in coastal areas make them a crucial part of the global energy landscape. Overall, the FSRU market is poised for continued growth in the coming years.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
13 Appendix

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SOURCE Technavio