ID: MRFR/E&P/4700-HCR | February 2021 | Region: Global | 100 pages
FSRU market is expected to increase from 85 MTPA in 2018 to 230 MTPA in 2023, at a CAGR of approx. 13.88%, which is due to the increase in demand for natural gas.
The global Floating Storage and Regasification Unit (FSRU) market is expected to grow at a high rate and the main reason is the boom in the LNG (Liquified Natural Gas) market. This acts as a catalyst for the economic growth in various countries worldwide, as it is environment-friendly and viable to be adopted in a shorter period of time to reduce the carbon emissions. Recent discoveries in offshore regions have been made, which focu s on fulfilment of the demand for various sectors, such as transportation, power generation as a feedstock for petrochemical manufacturers, and other end-users. FSRU market helps get natural gas on time and makes it readily available to local markets. Diversification in the market is prominent, fulfilling the demands for LNG and natural gas, globally. FSRU business is growing exponentially to meet the demand for green fuel.
The FSRU emerged nearly 15 years back in early 2000. There are currently 26 FSRUs in the world, out of which 23 are operated as terminals, three operated as LNG tankers, and approx. 11 are under construction. The main reason behind the growth of this industry is commercial flexibility, scheduling, and lower cost. Moreover, it attracts the countries, which have land constraints to construct any stationary onshore regasification facilities and it takes years to build, commission, and operate. Due to that, FSRU acts as a perfect solution because it can be deployed anywhere. The cost of a new FSRU is just 50-60% of an onshore terminal and that is to be delivered in half the time. An FSRU costs approx. USD 250-300 million, is constructed in 25- 40 months, and the specifications depend on the client requirements & location.
The CNG and LNG markets are evolving because of their low cost, low carbon emission, and easy transportation facilities. The factors driving the FSRU market growth are their mobility, technology feasibility, flexibility, and availability. Service providers from various ventures have highly appreciated this trade due to the above-mentioned reasons.
The key players in the global FSRU market are Excelerate Energy (U.S), Hoegh LNG (Bermuda), Golar LNG (Bermuda), BW gas (Norway), Gazprom FLEX LNG (U.K), Exmar (Belgium), Maran Gas Maritime Inc. (Greece), Offshore LNG Toscana SpA (Italy), Mitsui O.S.K. Lines (Japan) Bumi Armada (Malaysia), and Teekay Lng Partners, L.P. (Bermuda).
LNG is received through hoses or unloading arms and stored in tanks. The low-pressure pumps situated in storage tanks transfer LNG to the recondenser where it gets into contact with compressed boil-off gas from the storage tank, and the boil-off gas is condensed back into LNG before entering the high-pressure pumps. At every stage, fuel is measured to know about the losses. Pressure measurement is done at every stage of transferring the LNG, if required, the pressure of LNG from approx. 5 bar g to 100 bar g raised as per the customer demand. Finally, the LNG is vaporized at export pressure, metered, and exported from export arms to the pipelines.
In terms of cost, the total capital cost of FSRU terminal consists of three major components, namely FSRU vessel, owner’s cost, and infrastructure cost whereas, the cost may be fluctuating according to service providers, client requirement, and specificity of location.
As per the demand, Asia Pacific is expected to be the largest FSRU market during the forecast period, due to the gas to power conversion unit often encouraging the use of natural gas on a large level.
In 2016, Asia Pacific contributed approx. 160 MTPA to the global market. Thus, it can be predicted that it will have further growth during the forecast period. This growth was for the easy availability, accessibility, and flexibility from the supply side of LNG because of FRSUs. The Middle East has the maximum number of FSRU across the world and possess reserves that can fulfill the demand for LNG across the world.
|Market Size||2030: Significant Value|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Construction, Storage and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Excelerate Energy (U.S), Hoegh LNG (Bermuda), Golar LNG (Bermuda), BW gas (Norway), Gazprom FLEX LNG (U.K), Exmar (Belgium), Maran Gas Maritime Inc. (Greece), Offshore LNG Toscana SpA (Italy), Mitsui O.S.K. Lines (Japan) Bumi Armada (Malaysia), and Teekay Lng Partners, L.P. (Bermuda)|
|Key Market Opportunities||New product launches and R&D Amongst major key players|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
A floating storage regasification unit, abbreviated as FSRU, is an important component that is used for transiting and transferring of liquefied natural gas (LNG) via ocean channels. FSRU is often referred to as a special ship that is used specifically for the transportation of LNG.
Natural gas is an excellent alternative source for fossil fuel. LNG is being used to fuel automobiles instead of diesel and petrol. It is due to the depletion of fossil fuel and the growing need to curb vehicular emission, LNG is being used extensively as a clean and renewable source of energy. Hence, the surge in the demand for LNG is encouraging its import and export across different countries. Mostly, the transportation is done via water bodies. It is important to note that the LNG spill on an ocean can be dangerous for marine creatures. Thus, specialized vehicle, FSRU is gaining popularity. This is expected to spur the global FSRU market growth.
Addition causes, such as operational flexibility, and an increase in the production and supply of LNG can bolster the worldwide FSRU market growth.
Ease of installation, quick offloading, better physical space management, and seamless execution of heating and liquefaction process are advantages offered by FSRU that are expected to benefit the market.
MRFR, in its latest “FSRU Market” report, states that the market can strike a 13.88% CAGR in the assessment period.