NEW YORK, July 8, 2024 /PRNewswire/ — The global floating storage regasification unit (FSRU) market size is estimated to grow by USD 891.1 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 8.09% during the forecast period. Cost competitiveness of fsru is driving market growth, with a trend towards stabilization of crude oil prices. However, growth in number of alternatives poses a challenge. Key market players include BUMI ARMADA BERHAD, BW Group, Dynagas Ltd., Eni SpA, Excelerate Energy Inc., Exmar NV, Flex LNG Ltd., Golar LNG Ltd., H Energy Group of Companies, Hoegh LNG Holdings Ltd., Jaya Samudra Karunia Group, Karadeniz Holding A.S., LNG Hrvatska d.o.o, Mitsui and Co. Ltd., OLT Offshore LNG Toscana Spa, RWE AG, SENER GRUPO DE INGENIERIA SA, Swan Energy Ltd., Teekay Corp., and Trafigura Group Pte. Ltd..
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Forecast period |
2024-2028 |
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Base Year |
2023 |
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Historic Data |
2018 – 2022 |
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Segment Covered |
End-user (Power generation, Industrial, and Others), Type (Newly built and Converted), and Geography (Middle East and Africa, APAC, Europe, North America, and South America) |
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Region Covered |
Middle East and Africa, APAC, Europe, North America, and South America |
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Key companies profiled |
BUMI ARMADA BERHAD, BW Group, Dynagas Ltd., Eni SpA, Excelerate Energy Inc., Exmar NV, Flex LNG Ltd., Golar LNG Ltd., H Energy Group of Companies, Hoegh LNG Holdings Ltd., Jaya Samudra Karunia Group, Karadeniz Holding A.S., LNG Hrvatska d.o.o, Mitsui and Co. Ltd., OLT Offshore LNG Toscana Spa, RWE AG, SENER GRUPO DE INGENIERIA SA, Swan Energy Ltd., Teekay Corp., and Trafigura Group Pte. Ltd. |
Key Market Trends Fueling Growth
The crude oil market experienced significant price fluctuations from 2017 to 2023, impacting Exploration and Production (E&P) activities. The fall in crude oil prices in 2014 and 2020 led to a halt in several E&P projects. However, according to the International Energy Agency (IEA), crude oil prices have stabilized, enabling the resumption of E&P activities and the production of natural gas. The IEA predicts that natural gas will account for over 25% of global energy demand by 2040, growing at a rate of 1.6% per year. This anticipated growth of natural gas is expected to fuel the expansion of the Floating Storage and Regasification Unit (FSRU) market during the forecast period.
The Floating Storage and Regasification Unit (FSRU) market is experiencing significant growth, particularly in the power plant and automotive sectors. FSRUs convert LNG back into its gaseous state for use as fuel, making them essential for importing natural gas in regions without pipeline networks. New FSRU vessels and converted LNG carriers are increasing storage capacity, addressing constraints in the sector. FSRUs can be located inshore or offshore, with mooring systems securing them to the shoreline or special buoy systems. However, port congestion and geo-technical analysis are challenges. FSRUs are used in gas power plants, small-scale LNG imports, and carrier vessel-based applications. The Shale gas revolution and increasing LNG imports have driven demand for FSRUs, which operate in the semi-cooled state to vaporize the intermediate fluid in an open circuit. Environmental concerns and hydrocarbon handling are ongoing considerations. FSRUs are crucial for meeting energy demands in various industries while minimizing land use.
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Market Challenges
- Offshore LNG transportation involves various techniques such as Floating Storage and Regasification Units (FSRUs), Floating Storage Offloading (FSO), and Floating Production Storage and Offloading (FPSO). An FPSO is a vessel with onboard processing equipment and hydrocarbon storage below deck, providing storage and processing of produced hydrocarbons. FSO offers storage and offloading facilities for extracted hydrocarbons, transporting them to desired locations. FSRUs, similar to FPSOs, include a regasification unit on top of the fleet for providing customers with nitrogen gas. FSRUs can be converted or newly built. While FSRUs offer advantages like rapid development and easy relocation, their increased cost of ownership due to additional equipment and safety measures limits their adoption. The high adoption rate of FSO and FPSO is expected to hinder the growth of the global FSRU market. FSRUs represent an innovative solution in the offshore LNG market, but their higher cost compared to other LNG transportation methods may restrict their widespread use.
- The Floating Storage and Regasification Unit (FSRU) market is experiencing significant growth due to increasing natural gas production, particularly from shale formations, leading to a surge in LNG imports. Power plants and the automotive industry are major consumers, driving demand for FSRUs. However, challenges include the need for seas and oceans as locations for FSRUs, maintaining the semi-cooled state of the gas, and environmental concerns. Gas-to-energy projects require intermediate fluid vaporization in an open circuit, which can lead to hydrocarbon emissions and potential pollution. FSRUs must also consider freezing temperatures and low carbon emissions, while transportation and energy consumption add to production costs. Artificial LNG shortages, defense purposes, and land use are additional factors. Technological flexibility, mobility, feasibility, availability, and affordability are crucial for FSRU success. LNG importers in the energy, transportation, and maritime sectors rely on FSRUs for fuel, but construction and capital for installations are significant challenges. The global LNG trade and LNG import demand continue to shape the FSRU market landscape.
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Segment Overview
This floating storage regasification unit (fsru) market report extensively covers market segmentation by
- End-user
- 1.1 Power generation
- 1.2 Industrial
- 1.3 Others
- 2.1 Newly built
- 2.2 Converted
- 3.1 Middle East and Africa
- 3.2 APAC
- 3.3 Europe
- 3.4 North America
- 3.5 South America
1.1 Power generation- The Floating Storage and Regasification Unit (FSRU) market refers to the business of supplying natural gas in its liquid form, transported via specialized vessels, and converting it back to its gaseous state for distribution. FSRUs play a crucial role in addressing energy security and diversity by providing an alternative to pipeline-imported gas. These units are strategically located near ports and can be easily connected to existing gas infrastructure, making them a flexible and efficient solution for countries seeking to diversify their energy sources. The global FSRU market is expected to grow significantly due to increasing demand for natural gas and the need for more flexible and efficient energy solutions.
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Research Analysis
The Floating Storage and Regasification Unit (FSRU) market has gained significant traction in recent years due to the increasing demand for Liquefied Natural Gas (LNG) imports. The shale gas revolution in the United States and the abundance of hydrocarbons have led to a surge in natural gas production, resulting in a surplus and a need for export. FSRUs allow for the regasification of LNG in a semi-cooled state, making it possible to supply LNG to energy sectors such as power plants and the automotive industry. The seas and oceans provide an ideal location for FSRUs due to their proximity to major shipping lanes and the ability to access global LNG trade. The construction of new FSRU vessels and the conversion of LNG carriers have increased storage capacity, helping to alleviate constraints in the market. The open circuit regasification process involves the intermediate fluid vaporization, making it an efficient and cost-effective solution for LNG imports. Temperature control is crucial in the FSRU market, ensuring the safe and efficient regasification of LNG. Gas-to-energy projects are also benefiting from the use of FSRUs, further increasing demand. However, the oceanic ecosystem must be considered in the construction and operation of FSRUs to minimize environmental impact. Capital for installations and ongoing maintenance are key considerations for the growth of the FSRU market. The power plant sector and automotive sector are major consumers of LNG, driving the demand for FSRUs. LNG import demand continues to rise, making the FSRU market an essential component of the global energy landscape.
Market Research Overview
The Floating Storage and Regasification Unit (FSRU) market is a dynamic and growing sector in the global energy landscape. With the shale gas revolution increasing natural gas production, there is a surplus of hydrocarbons leading to an increase in LNG imports. FSRUs play a crucial role in this process by converting liquefied natural gas (LNG) back into its gaseous state for use in power plants, industries, and the automotive sector. FSRUs operate in the semi-cooled state, where seawater is used for intermediate fluid vaporization. They can be found in various locations, including near shores, ports, and offshore terminals. The use of FSRUs enables mobility and flexibility, making them an attractive option for regions with limited land use or pipeline networks. FSRUs have environmental benefits, such as low carbon emissions, and can help reduce dependence on fossil fuels. However, they also face challenges such as production cost, availability, and feasibility. The market for FSRUs is diverse, with demand coming from various sectors including energy, transportation, and maritime. The construction of FSRUs requires significant capital for installations, and their availability is subject to geo-technical analysis and port congestion. Despite these challenges, the FSRU market continues to grow, driven by increasing LNG import demand and the need for energy security and diversity. FSRUs are also used for defense purposes and small-scale LNG imports. New FSRU vessels and converted LNG carriers are being built to increase storage capacity and address capacity constraints. The future of FSRUs looks promising, with potential for expansion and integration with pipeline networks and land-based terminals.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
- Power Generation
- Industrial
- Others
- Type
- Newly Built
- Converted
- Geography
- Middle East And Africa
- APAC
- Europe
- North America
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
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SOURCE Technavio
