Floating Liquefied Natural Gas (FLNG) Market Outlook: Global FLNG Market Report, Size, Share, Price Trends, Competitive Analysis and Forecast 2016-2024

Global Floating Liquefied Natural Gas (FLNG) Market 

Market Overview

Floating liquefied natural gas (FLNG) is an innovative step to establish offshore natural gas resources projects as a result companies are investing in establishing several new FLNG facilities. In 2014, Petronas developed the world’s first operational floating LNG producing facility, PFLNG Satu in Malaysia. In South Korea, Petronas is developing another FLNG facility at Samsung Heavy Industry’s shipyard named PFLNG2 on Geoje Island. Moreover, Belgian shipping group EXMAR NV developed a new unit Caribbean FLNG project, in a joint venture with Canadian petroleum exploration and production company Pacific Rubiales Energy (PRE). The Prelude FLNG project in South Korea by Shell is estimated to produce nearly 110 thousand barrels of oil equivalent per day of gas (BOE/D) and natural gas liquids (NGLs) and 3.6 mtpa of LNG. These projects are expected to propel the market of FLNG in the new future.

Market players are actively participating into developing new FLNG units; however, companies are experiencing challenges in developing large and complex capital projects of FLNG. Expiration of license, cross border conflicts, potential cost incursion and government regulations are creating challenges in the development of new FLNG units mainly in countries such as Brazil, Iraq, Cyprus and Israel. Exchange rate fluctuations and tumbling energy prices are causing delay in the construction of FLNG projects which led to either cancellation of contract or closure of the projects leading to the huge economical loss to the market players. These are the major factors which are expected to hinder the growth of the FLNG market in the coming years.

Market Segmentation

Global Floating Liquefied Natural Gas (FLNG) Market is segmented on the following basis:

Based on Type of Technology

• LNG Floating Production Storage and Offloading (FPSO)
• Floating Storage Regasification Unit (FSRU)

Based on Production Capacity

• Small/Mid Scale (0-2.9 MTPA)
• Large Scale (3 MTPA and above)

 Based on Mode of Deployment

• Near Shore
• Offshore

Based on Geography

• North America (U.S. & Canada) {Market Size (USD Billion), Growth Analysis (%) and FNLG Production (MTPA) }
•  Latin America (Brazil, Mexico, Argentina & Rest of Latin America) {Market Size (USD Billion), Growth Analysis (%) and FNLG Production (MTPA)}
• Europe (The U.K., Germany, France, Italy, Spain, Poland, Sweden & RoE) {Market Size (USD Billion), Growth Analysis (%) and FNLG Production (MTPA)}
• Asia-Pacific (China, India, Japan, Singapore, South Korea, Australia, New Zealand, Rest of Asia) {Market Size (USD Billion), Growth Analysis (%) and FNLG Production (MTPA)}
• Middle East & Africa (GCC, South Africa, North Africa, RoMEA) {Market Size (USD Billion), Growth Analysis (%) and FNLG Production (MTPA)}
•  Rest of World {Market Size (USD Billion), Growth Analysis (%) and FNLG Production (MTPA)}

Market Size and Forecast (2016-2024)

Global floating liquefied natural gas (FLNG) market share is anticipated to reach USD 73.7 billion by 2024, owing to the rising demand for gas fueled power plants which led to the expansion of incorporated LNG-to-power projects. Total spending on floating liquefied natural gas (FLNG) valued over USD 7.1 billion in 2016 and global FLNG market is estimated to grow at a CAGR of 24.0% during the forecast period.

Middle East & Africa region is expected to account for over 48% share of floating liquefied gas projects expenditure during the forecast period. As there are many projects are at an early stage in these regions such as planned projects in Mozambique, Tamar, Leviathan Benin, Ghana, Ivory Coast, South Africa and Kuwait. Moreover, companies such as Eni, Ophir Energy and Perenco are spending on floating liquefaction vessels in this region which is expected to drive the FLNG expenditure over the forecast period.

Asia-Pacific region is expected to be the key area for the development of FLNG projects. Growing investment and establishment of floating storage regasification unit (FSRU) in countries such as Indonesia, Bangladesh and India are likely to boost the growth of FLNG market in Asia-Pacific region. Asia-Pacific region accounted for around 21% share of global FLNG market.

Market Drivers and Challenges

Rising demand for clean and affordable fuel is contributing in increasing the demand for FLNG. Furthermore, cost effective operation included in pumping the gas to shore is expected to bring new business prospects for companies to establish coastal gas field. However, fluctuating prices of oil and natural gases are hampering the demand and supply of FLNG globally. If the period of low oil and gas prices will be stretched, it will negatively impact the business of FLNG and may results into the delay or cancellation of ongoing projects. Complex natures of FLNG projects also hold back the investment by the market players as the conversion process and nature of FLNG is highly technical and intricate. Moreover, offshore settings of floating natural gas projects is the biggest challenge, further the design capability of FLNG vessels to withstand the damage caused by sea waves and current motion is also a major concern for the market players. These factors are likely to affect the revenue generation from FLNG business, and less revenue from integrated gas businesses will surely impact the future investment made by the companies and expansion of FLNG business.

Key Market Players

• Royal Dutch Shell
  • Synopsis
  • Business Strategy
  • Product Portfolio
  • SWOT Analysis
• Golar LNG
• Excelerate Energy L.P.
• Exmar NV
• Höegh LNG
• Eni
• Mitsui O.S.K. Lines
• Petronas
• Ophir Energy
• Noble Energy
• Samsung Heavy Industries
• Hyundai Heavy Industries
• Woodside Petroleum
• Perenco
• Mitsubishi Heavy Industries
• Black & Veatch Holding Company
• JGC Corporation
• KBR Inc.
• Saipem S.p.A.
• TechnipFMC plc
• DAEWOO Shipbuilding & Marine Engineering Co., Ltd. (DSME)

Scope Background

Market Synopsis

Market Segmentation

The Global Floating Liquefied Natural Gas (FLNG) Market is segmented as follows:

• By Type of Technology (Market Size, Demand Analysis and Growth Analysis)
• By Capacity (Market Size, Demand Analysis and Growth Analysis)
• By Mode of Deployment (Market Size, Demand Analysis and Growth Analysis)

By Region

· North America (U.S., Canada) {Market Size, Growth Analysis and Opportunity Analysis}

• Latin America (Argentina, Mexico, Brazil and Rest of Latin America) {Market Size, Growth Analysis and Opportunity Analysis}
• Europe (Germany, Italy, Spain, France, The U.K., Netherlands, Sweden, Hungary, Russia, Poland, Rest of Europe) {Market Size, Growth Analysis and Opportunity Analysis}
• Asia-Pacific (China, India, Singapore, Japan, Hong-Kong, Australia, New Zealand, South Korea and Rest of Asia Pacific) {Market Size, Growth Analysis and Opportunity Analysis}
• Middle East and North Africa (MENA) {Market Size, Growth Analysis and Opportunity Analysis}
• Rest of World  {Market Size, Growth Analysis and Opportunity Analysis}

Market Dynamics: Growth Drivers, Restraints and Opportunities

• Risk Factors

• Regional Variations
• Recent Trends and Developments

Key Market Players

• Synopsis
• Business Strategy
• Product Portfolio
• SWOT Analysis

Porter’s Five Force Model

Market Landscape: Competition and Beyond

Market outlook for business players and entry level players to ascertain their business in dynamic ecosystem

Expert Analysis

Concluding Remarks