New report optimistic about FLNG

Despite the present economic woes, the Floating Liquefied Natural Gas (FLNG) business is underpinned by compelling long-term fundamentals and is poised to be a major growth sector, with expenditures of $23 billion forecast to 2016, according to Douglas-Westwood’s World FLNG Market Report 2010-2016.

Offshore staff

CANTERBURY, UK -- Despite the present economic woes, the Floating Liquefied Natural Gas (FLNG) business is underpinned by compelling long-term fundamentals and is poised to be a major growth sector, with expenditures of $23 billion forecast to 2016, according to Douglas-Westwood’s World FLNG Market Report 2010-2016.

The report features a market model built on a project-by-project review of development prospects and also sense-checks for external factors such as supply chain constraints, the company says. The report includes forecasts segmented by services such as technology licensing, front end engineering & design, project management & detailed design engineering, construction engineering (field engineering), and construction and installation (hook-up and commissioning).

The company predicts that Australasia will account for the largest proportion of the $23 billion global capex forecast, with a 23% share. Africa is next, also with a 23% share, or $5.2 billion. North America, despite having the greatest number of FLNG projects – mostly import terminals –accounts for only $1.6 billion, or 7% of global Capex.

“In many regions we are seeing that floating re-gasification units continue to be sanctioned and the various floating liquefaction systems are progressing well through the design and engineering process,” says Steve Robertson of Douglas-Westwood. “Southeast Asia will be a key area of focus for the sector and it is clear that there are many players evaluating the technology with an intention to deploy”

07/28/2009

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