Picture: Shell’s Prelude FLNG
Floating liquefied pure fuel (FLNG) terminals are gaining momentum on the worldwide LNG market, with capability anticipated to triple by 2030 in accordance with analysis from Rystad Power. As soon as hindered by technical and operational challenges, FLNG tasks at the moment are attaining utilization charges similar to onshore terminals. With LNG demand rising alongside the rising viability of smaller fuel fields, FLNG is rising as a quicker, extra versatile and cost-effective answer able to adapting to shifting market dynamics whereas unlocking beforehand stranded reserves.
Picture: Rystad Power
Rystad Power estimates world FLNG capability will attain 42 million tonnes each year (MMtpa) by 2030, climbing to 55 Mtpa by 2035, nearly 4 occasions the 14.1 Mtpa recorded in 2024. Terminals commissioned earlier than 2024 achieved a mean utilization charge of 86.5% in 2024 and 76% to this point in 2025, figures similar to world onshore LNG amenities.
“FLNG has come a great distance in lower than a decade. The one actual roadblocks have been early teething points that include any new expertise, as seen with tasks like Shell’s Prelude, which confronted price overruns and unstable output. However since then, the business has matured considerably, together with Prelude itself. Utilization charges are enhancing, the expertise is proving dependable throughout a spread of environments, and the economics are beginning to make extra sense. From navigating allowing challenges in Canada to unlocking distant offshore reserves in Africa and Asia, FLNG is lastly going mainstream,” mentioned Kaushal Ramesh, Vice President, Gasoline & LNG Analysis, Rystad Power.
With out a prior blueprint to observe, early FLNG tasks, resembling Shell’s Prelude, in-built South Korea by the Technip–Samsung consortium, grew to become a damaging demonstration of FLNG’s early limitations. Prices ballooned to $2,114 per tonne for liquefaction alone. Nonetheless, because the business gained operational and building expertise, capital expenditure per tonne has declined considerably, bringing prices in keeping with onshore LNG tasks.
Proposed developments alongside the US Gulf Coast now common round $1,054 per tonne. Delfin FLNG, a proposed challenge within the US, sits simply above that common at $1,134 per tonne, whereas Coral South FLNG in Mozambique, which has similarities in scale, reviews a comparable liquefaction price of $1,062 per tonne. Nonetheless, we notice that challenge ideas should not totally comparable. Some are complicated built-in producers with upstream elements as a part of the LNG amenities, whereas others merely liquefy pipeline-spec fuel.
In parallel, FLNG builders are more and more turning to vessel conversions as a cost-efficient different to newbuild amenities. Initiatives resembling Tortue/Ahmeyim FLNG, Cameroon FLNG and Southern Power’s FLNG MK II have achieved notably decrease capex ranges of $640, $500 and $630 per tonne, respectively, by repurposing Moss-type LNG carriers. These conversions profit from the vessels’ modular spherical tank design, which permits for less complicated integration of prefabricated liquefaction modules. With a number of Moss-type LNG tankers anticipated to retire within the coming years, extra may very well be repurposed, increasing the pipeline of lower-cost FLNG options.
FLNG vessels are additionally proving their operational flexibility throughout various environments, from deepwater to ultra-deepwater fields and even onshore provide. Ought to sure tasks stall, their vessel may very well be relocated or offered, demonstrating the inherent mobility and adaptableness of FLNG property.
Within the present vitality atmosphere, the place markets stay tight however face the danger of oversupply, velocity to first manufacturing is vital. Prolonged building timelines delay income technology and expose tasks to a better threat of price overruns. Rystad Power knowledge additionally exhibits that FLNG models may be delivered considerably quicker than onshore liquefaction amenities, enabling faster last funding choices and extra agile execution. On common, newbuild FLNG tasks are accomplished in roughly three years, in comparison with about 4.5 years (capacity-weighted) for operational onshore crops. For FLNG vessels at present below building, the common projected construct time is even decrease at 2.85 years. This accelerating timeline is a key issue within the rising desire for FLNG, as builders search to reduce publicity and speed up returns.
