The global floating LNG terminals market is witness significant growth over the forecast period owing to the surging offshore field developments and rising LNG exports. LNG systems’ operations and processes are widely used for the advancement of off-shore based natural gas reserves. These operations and processes are extensively applicable in production, storage, liquefaction and transferability of liquefied natural gas from offshore gas reserves to onshore ones, which may also spur the market growth over the coming years.
Floating liquefied natural gas (FLNG) facility generates liquefied natural gas directly on the off-shore floating system resulting in considerably shorter value chain as compared to common on-shore LNG system, and may favourably impact market growth. The market is poised for growth owing to several benefits offered by LNG terminals such as utilization of less space, incorporation of equipment and facilities in a single enclosed structure, minimization of development cost, eliminating the need for on-shore infrastructure and reduction of disturbance to surrounding environment. Stranded gas reserves’ monetization and security of supply are expected to be key forces driving the floating LNG terminal market growth in the near future. Further, decreasing on-shore terminal costs and rising long-term gas demand is apprehended to fuel market demand. The market is anticipated to witness a significant upsurge in the number of new offshore floating LNG projects as compared to other shale gas and allied exploration projects. Necessity for short- to medium-term import solutions is expected to fuel market growth over the coming years.
Additionally, growing economy resulting in increasing electricity demand is anticipated to favorably impact the floating liquefied natural gas (FLNG) terminals market growth. The market is expected to gain traction owing to the environmental solutions it provides. Further, floating LNG terminals provides added advantage by acting as a processing platform along with being a liquefaction facility. It subsequently eliminates the need for costly pipeline and production facilities, which is also expected to drive the floating LNG terminals market growth. Many environmental and economic benefits offered by floating LNG terminals are anticipated to fuel market demand over the forecast period. Environmental turmoil would be diminished during the later decommissioning of the facility, as it would be disengaged effortlessly and detached prior to being refurbished and re-deployed somewhere else. Further, floating LNG terminals make development economically viable and open business avenues for countries to build up offshore gas fields that would otherwise remain marooned, such as those off the coast of East Africa.
However, lack of infrastructure in several regions, particularly developing economies may negatively impact monetization of reserves, ultimately posing a challenge for the market. Further, designing and construction challenges pertaining to the floating LNG terminal facilities may hamper market growth over the forecast period. Complexity of off-shore set up coupled with disruption of gas supplies may emerge as a key issue over the next few years. Additionally, local opposition for development of new on-shore facilities paired with tight contractor markets and surging labor & raw materials cost may pose challenge to the LNG terminals market growth. For example, Seven Australian projects are facing issues due to exceeding forecast expenditure. This also include Gorgon project in Barrow Island in Western Australia.
Asia Pacific is expected to account for significant market share over the forecast period owing to large number of liquefaction projects in the region. Further, Latin America is anticipated to exhibit high growth owing to upsurge in projects involving off-shore liquefaction. In addition, North America is estimated to emerge as an exporter instead of importer owing to the un-earthing of large supplies of shale gas.
Key vendors in the floating LNG terminals market include Royal Dutch Shell, Excelerate Energy, Samsung Heavy Industries, Golar LNG and Höegh LNG. Other prime vendors include Daewoo Shipbuilding and Marine Engineering, PETRONAS and Hyundai Heavy Industries.
Avail customized purchase options to meet your exact research needs:
Get your queries resolved from an industry expert.
Design an exclusive study to serve your research needs.
A testimonial for service in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.
"The quality of research they have done for us has been excellent..."
The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.