Floating LNG is having its moment. Once dismissed as costly and unreliable, FLNG is now one of the fastest-growing segments in the gas industry—and analysts at Rystad Energy say global FLNG capacity is on track to more than triple by 2030, reaching 42 million tonnes per annum (Mtpa), and climbing to 55 Mtpa by 2035. That’s nearly 4x the 14.1 Mtpa recorded in 2024.
What’s changed? For starters, utilization rates are up—averaging 86.5% in 2024 and holding at 76% this year—putting FLNG on par with traditional onshore terminals. The shift reflects a maturing industry, no longer haunted by the ghosts of Shell’s Prelude, whose $2,114-per-tonne cost and sputtering performance once defined FLNG’s limitations.
Today, project economics are vastly improved. New U.S. Gulf Coast developments now average about $1,054 per tonne. Vessel conversions have pushed costs even lower. Cameroon FLNG came in at just $500 per tonne. Tortue/Ahmeyim and Southern Energy’s FLNG MK II also slashed capex using repurposed Moss-type carriers—retired LNG vessels retrofitted into mobile liquefaction plants.
Speed is another selling point. Newbuild FLNG projects can be delivered in as little as 2.85 years, compared to 4.5 years for onshore plants. In a tight market where demand from players like Egypt, Europe, and Asia is surging, time-to-market matters.
Egypt alone has secured nearly 300 cargoes through 2028 and is preparing to import even more. With both Asia and Europe elbowing for spot cargoes, flexible, mobile FLNG assets could be redeployed where the market is hottest.
Whether FLNG can fully deliver on this bullish forecast remains to be seen. But with capital costs falling, timelines shrinking, and stranded reserves finally within reach, the age of floating LNG is no longer adrift—it’s underway.
By Julianne Geiger for Oilprice.com
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