Douglas-Westwood Expects FLNG Market to Grow to $58.3B Over 2015-2021
Douglas-Westwood (DW) says Thursday in its World FLNG Market Forecast 2015-2021 that despite the current pause in commitments to new projects, the capital expenditure for floating liquefied natural gas (FLNG) vessels is expected to reach $35.5 billion over 2015-2021.
Global spending on floating storage and regasification units (FSRUs) is estimated at $22.8 billion in the corresponding period, bringing the combined expenditure for the FLNG market to $58.3 billion. A huge interest in the pioneering projects is likely to drive industry expenditure over the coming years, while future commitments by operators to the FLNG market hinges on the success of the pioneering projects.
These pioneering projects include Petronas’ PFLNG 1, also known as the PFLNG SATU, which looks set to become the world’s first FLNG vessel to start operations when it is completed at the end of 2016. Shell’s Prelude FLNG vessel, a significantly larger project and one that is likely to shape future FLNG developments, is scheduled to follow in PFLNG 1's footstep. Construction of the 1,601 feet (488 meters) long facility started in 2012 (the unit is being built by Samsung in South Korea) and is expected to start up by 2017.
The next wave of new projects, which has yet to be sanctioned, are expected to drive a growth in expenditure from 2019 onwards, including major projects in frontier regions such as East Africa.
Meanwhile, DW anticipates more floating regasification units are to be sanctioned, especially from Asia and Latin America. Upcoming projects are visible in Indonesia, China, Pakistan, India, Vietnam, Bangladesh and Sri Lanka, mostly led by national oil companie, while Latin America will see deployments of FSRUs in Chile and Puerto Rico
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