Reports related to this article:
Project(s): View 3 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--As global demand for natural gas continues to rise, energy scarcity remains a matter of great concern in many countries, particularly in the developing nations. Consequently, countries worldwide are turning to natural gas imports that can help meet this escalating demand, which in turn is driving the necessity to develop regasification terminals. Amid this evolving energy landscape and increasing energy security concerns among nations, floating storage regasification units (FSRUs) emerge as one of the ways to bridge this looming supply-demand gap.
FSRUs are vessels equipped with regasification equipment, designed to receive, store and convert liquefied natural gas (LNG) back into its gaseous state for distribution. FSRU facilities offer a flexible and cost-effective solution to import LNG, especially in regions where setting up permanent facilities is challenging as well as expensive. Deploying FSRUs is also time efficient as it takes one to three years to deploy one as compared to conventional land-based facilities that require four to six years to implement.
Apart from its time and cost-efficient benefits, the global commitment toward reducing carbon emissions and transition to cleaner fuels is further driving the growing interest in FSRUs. Since the implementation of these facilities requires less land, it has minimal environmental impact on its surroundings. Also, LNG being a less polluting fossil fuel, FSRUs provide nations a transitional solution while facilitating distribution of LNG imports.
Industrial Info is tracking 82 projects with investments worth more than US$20 billion. Asia, Europe and South America are the biggest spending drivers for FSRUs, accounting for about 90% of the global market share. Approximately 54% of the spending is in the initial planning phase, 25% is in the engineering phase, and 22% is already under construction. Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminals Project Database can click here for a list of detailed project reports.
Asia, with its growing energy demand and rapid economic growth, is the largest spending driver, with investments worth US$12.08 billion, toward deploying FSRUs. According to the U.S. Energy Information Administration (EIA), the annual natural gas consumption in Asian countries including China, India, Bangladesh, Thailand and Vietnam is estimated to reach 120 billion cubic feet per day (Bcf/d) by 2050, exceeding domestic production significantly by 50 Bcf/d.
As per Industrial Info's data, the Republic of China-Taiwan is planning to invest US$2.8 billion, driven completely by Taiwan Power Company (Taipei, Taiwan). The company is aiming to set up the grassroot Hsieh-Ho LNG Receiving & Regasification FSRU as a support for the Hsieh-Ho gas-fired power plant. Subscribers can click here for the project report.
India is also driving significant spending across six projects with investments worth US$2.24 billion. One of the key projects with a related investment of US$615 million is the construction of a grassroot LNG FSRU in Jafrabad, Gujarat, which is intended to regasify 5 million tons per year (MMT/yr), or 1,000 million standard cubic feet per day (MMSCFD), with a storage capacity 180,000 cubic meters (CBM) of LNG. Subscribers can click here for the project report.
With investments worth US$3.93 billion, Europe emerges as the second-largest market for FSRUs, driven by various factors such as its increasing focus on energy security to reduce reliance on Russian gas imports. LNG accounts for 32% of the EU's total net gas imports.
Greece still depends on Russian gas to meet 40% of the nation's energy needs and therefore, is driving the majority of spending in Europe, with US$1.03 billion worth of investments. Also, pertaining to the Ukraine crisis, Greece has further decided to push the phase-out of lignite to 2028. With the nation aiming to move away from Russian natural gas imports, while also transitioning to renewables and hydrogen-related sources of energy, Greece is potentially investing in six FSRU projects worth US$1.03 billion.
South America also boasts of sizable potential investments worth US$2.88 billion, with Brazil (US$2.65 billion) driving the majority of the spending. The nation largely relies on hydropower, which accounted for 63% of the electricity generation in 2022. However, the continued growth of hydropower poses significant environmental challenges. By introducing FSRUs in its energy mix, the nation is aiming to diversify energy sources and further limit reliance on hydropower.
In Brazil, Fortress Investment Group LLC (New York, New York) is planning to invest US$400 million across two projects. One of these projects is an FSRU, aimed at 15 MMSCMD regasification, with a storage capacity of 160,000 cubic meters of LNG to supply to the south Brazil area. Subscribers can click here for the project report.
Subscribers can click here for the project reports mentioned in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
FSRUs are vessels equipped with regasification equipment, designed to receive, store and convert liquefied natural gas (LNG) back into its gaseous state for distribution. FSRU facilities offer a flexible and cost-effective solution to import LNG, especially in regions where setting up permanent facilities is challenging as well as expensive. Deploying FSRUs is also time efficient as it takes one to three years to deploy one as compared to conventional land-based facilities that require four to six years to implement.
Apart from its time and cost-efficient benefits, the global commitment toward reducing carbon emissions and transition to cleaner fuels is further driving the growing interest in FSRUs. Since the implementation of these facilities requires less land, it has minimal environmental impact on its surroundings. Also, LNG being a less polluting fossil fuel, FSRUs provide nations a transitional solution while facilitating distribution of LNG imports.
Industrial Info is tracking 82 projects with investments worth more than US$20 billion. Asia, Europe and South America are the biggest spending drivers for FSRUs, accounting for about 90% of the global market share. Approximately 54% of the spending is in the initial planning phase, 25% is in the engineering phase, and 22% is already under construction. Subscribers to Industrial Info's Global Market Intelligence (GMI) Terminals Project Database can click here for a list of detailed project reports.
Asia, with its growing energy demand and rapid economic growth, is the largest spending driver, with investments worth US$12.08 billion, toward deploying FSRUs. According to the U.S. Energy Information Administration (EIA), the annual natural gas consumption in Asian countries including China, India, Bangladesh, Thailand and Vietnam is estimated to reach 120 billion cubic feet per day (Bcf/d) by 2050, exceeding domestic production significantly by 50 Bcf/d.
As per Industrial Info's data, the Republic of China-Taiwan is planning to invest US$2.8 billion, driven completely by Taiwan Power Company (Taipei, Taiwan). The company is aiming to set up the grassroot Hsieh-Ho LNG Receiving & Regasification FSRU as a support for the Hsieh-Ho gas-fired power plant. Subscribers can click here for the project report.
India is also driving significant spending across six projects with investments worth US$2.24 billion. One of the key projects with a related investment of US$615 million is the construction of a grassroot LNG FSRU in Jafrabad, Gujarat, which is intended to regasify 5 million tons per year (MMT/yr), or 1,000 million standard cubic feet per day (MMSCFD), with a storage capacity 180,000 cubic meters (CBM) of LNG. Subscribers can click here for the project report.
With investments worth US$3.93 billion, Europe emerges as the second-largest market for FSRUs, driven by various factors such as its increasing focus on energy security to reduce reliance on Russian gas imports. LNG accounts for 32% of the EU's total net gas imports.
Greece still depends on Russian gas to meet 40% of the nation's energy needs and therefore, is driving the majority of spending in Europe, with US$1.03 billion worth of investments. Also, pertaining to the Ukraine crisis, Greece has further decided to push the phase-out of lignite to 2028. With the nation aiming to move away from Russian natural gas imports, while also transitioning to renewables and hydrogen-related sources of energy, Greece is potentially investing in six FSRU projects worth US$1.03 billion.
South America also boasts of sizable potential investments worth US$2.88 billion, with Brazil (US$2.65 billion) driving the majority of the spending. The nation largely relies on hydropower, which accounted for 63% of the electricity generation in 2022. However, the continued growth of hydropower poses significant environmental challenges. By introducing FSRUs in its energy mix, the nation is aiming to diversify energy sources and further limit reliance on hydropower.
In Brazil, Fortress Investment Group LLC (New York, New York) is planning to invest US$400 million across two projects. One of these projects is an FSRU, aimed at 15 MMSCMD regasification, with a storage capacity of 160,000 cubic meters of LNG to supply to the south Brazil area. Subscribers can click here for the project report.
Subscribers can click here for the project reports mentioned in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
