Floating LNG industry set for landmark project start-ups and further new wave of growth
Despite a current pause in commitments to new projects, the capital expenditure (Capex) for FLNG vessels is expected to amount to $35.5bn over 2015-2021. Spending on FSRUs will total $22.8bn over the same period, taking the combined expenditure for the Floating LNG market to $58.3bn.
There is a huge interest in the pioneering projects that will drive market spend over the coming years. Future commitments by operators to the FLNG market hinges on the success of these pioneering projects.
The delivery of Petronas' PFLNG 1, also known as the PFLNG SATU, will be the world's first FLNG vessel to start operations on its completion by the end of 2016. This will be followed by Shell's Prelude FLNG vessel, a significantly larger project and one that is likely to shape future FLNG developments. Construction of the 488 metres long facility started in 2012 (the unit is being built by Samsung in Korea) and is expected to start up by 2017.
Following these projects is a second wave of new projects that are yet to be sanctioned but are expected to drive a growth in expenditure from 2019 onwards. This includes major projects in frontier regions such as East Africa.
DW anticipates more floating regasification units are to be sanctioned, with Asia and Latin America being the dominant regions. Upcoming projects are visible in Indonesia, China, Pakistan, India, Vietnam, Bangladesh and Sri Lanka, mostly led by National Oil Companies. Latin America will see deployments of floating regas units in Chile and Puerto Rico.
The ‘World FLNG Market Forecast 2015-2021’ forecasts activity through to 2021 and contains analysis of:
- Market Drivers and Trends - including the monetisation of stranded gas reserves, security of supply, onshore terminal costs, environmental solutions and increasing long-term gas demand.
- The FLNG Supply Chain - operators, FLNG leasing, EPC contractors, vessel yards, topside sub-contractors and financing analysis.
- FLNG Import and Export Capacity - prospective installations 2015-2021, along with DW's forecast for the required Capex to bring this capacity online. This includes construction of base-load FLNG liquefaction and import (regasification) vessels.
- Capex Breakdowns - expenditure for liquefaction and regasification vessels segmented by component looking at topsides, hull & containment systems and mooring & transfer systems. And by service, including technology licencing, FEED, detailed design engineering, construction engineering, installation, hook-up & commissioning and construction of hull & topsides.
- Regional analysis - Africa, Asia, Australasia, Eastern Europe & FSU, Latin America, Middle East, North America and Western Europe.
Why purchase the FLNG Market Forecast?
Our market forecasting is trusted by sector players worldwide, with clients including the world's top-10 oil & gas companies, top-10 oilfield services companies and top-10 private equity firms. Our proven process includes:
- Unique and proprietary data - updated year-round from published sources and insight gained from industry consultation.
- Methodology - the report uses research from DW's proprietary ‘World LNG Projects Database’, an in-house information system exclusive to DW. Our global analyst team is involved in the gathering and analysis of FLNG market data through primary research and professional networks. A project-by-project review of development prospects drives a data-rich market model and forecast; with the timing of expenditure phased to reflect the commercial structures of likely projects.
- Market forecasts - comprehensive examination, analysis and 14-year coverage of FLNG expenditure.
- Concise report layout - consistent with DW's commitment to delivering value for our clients, all our market forecasts have a concise layout consisting of industry background and supporting materials condensed to enable quick review with ‘speed-read' summaries of key points throughout.
- An essential report - for engineering houses, contractors, shipping companies, vessel lease operators, shipbuilders, oil & gas operators, gas utilities and financial institutions wanting to better understand where and when to make investment decisions.