Fledgling LNG-FPSO market is set to expand rapidly in the next seven years.
Bullish predictions for LNG-FPSO, which at present has only one sanctioned project led by Royal Dutch Shell, are underpinned by projections of a surge in expenditure in the industry, according to Steve Robertson, director of energy consultancy Douglas Westwood, at an FLNG conference in London Thursday.
About $28bn will be spent on the FLNG industry in seven years’ time, compared with $15bn at present, he forecast.
Investors understand that FLNG projects will be quicker and cheaper to implement than onshore plants where expensive pipelines are required, and which can face challenges from environmental groups and local bureaucratic hurdles on use of the land.
It is known that some onshore plants planned in Russia and Australia face start-up delays due to shareholder conflicts and rising costs.
FLNG units can relocate to the source of the gas — a major advantage given that much future gas production will come from remote regions where the gas is harder to access in Papua New Guinea and Australia. Also, they can move to meet seasonal shifts in gas production.