Big cash headed for floating LNG market
UK
LONDON, July 23, 2015 – Investment in floating LNG (FLNG) vessels will reach $35.5 billion between 2015 and 2021, according to a report released by market research firm Douglas-Westwood. Floating storage and regasification units are expected to fetch $22.8 billion in investment over the same period. The projected $58.3-billion market is expected to be a main driver of growth in the oil and gas industry.
The first FLNG unit has yet to hit the market, however a number of ongoing projects will come to completion in the successding years. Malaysian state oil and gas company Petronas’ 365-metre long PFLNG 1 is set to become world’s first FLNG at the end of 2016. Shell’s FLNG entry, the even bigger 488-metre Prelude, is expected to sail by 2017. London-based Golar LNG is also throwing its hat in the ring, with a string of three FLNG units that are planned for assignments in 2017, 2018 and 209.
The success of this first wave of FLNG projects will likely shape a second wave of investment, which could take off in 2019, according to the report. At the same time, a number of regasification units are expected to be sanctioned, particularly in countries in Asia and Latin America.
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