Page 37: of Maritime Reporter Magazine (June 2025)

FLNG this demand sooner rather than later.

Floating Advantages

This structural shift has intensi? ed competition for LNG

Floating LNG has speci? c advantages in this context. First, cargoes, impacting the dynamics of demand between Europe it allows developers to access remote reserves that may be and Asia. A complex combination of price ? uctuations, energy unreachable for traditional facilities and second it enables policies and the need for supply diversi? cation will help shape faster development. In cases where onshore gas is not pres- this trajectory in future.

ent in high enough quantities to warrant a traditional onshore

Extreme weather is also impacting supply and demand, ex- liquefaction facility, FLNG capacity to scale to provide an op- empli? ed by droughts in South America in 2024, which saw portunity to monetise these resources.

LNG imports spike, affecting annual imports with a knock-on

An FLNG facility can be deployed a lot more quickly than effects to global balances, helping to propel LNG prices to an an onshore facility. This has the potential to shorten the return all time high, according to IEA data.

on investment cycle, which could lead to accelerated fund-

As the needs of these importers continue to mature, other ing approvals, with reduced environmental impact making it markets are expected to grow and others emerge as the second easier to get required regulatory approval, all of which make half of the decade progresses.

these projects potentially more attractive to investors.

China remains the largest importer of LNG, though there

The ultimate ambition would be to develop plug and play so- is some uncertainty as to how tariffs will impact this. India lutions and FLNG has the potential to bring LNG export capabil- is also increasing its exposure to LNG imports, with energy ities to a region quickly and with the most viable business case. companies recently announcing offtake agreements.

Their combination of greater mobility, higher energy ef? -

Other potential markets that are seeing growth are in South- ciency compared to onshore facilities and modular construc- east Asia, including Thailand, Vietnam and the Philippines, tion means a facility can be built and shipped from one loca- which are expanding their infrastructure to meet energy de- tion rather than relying on a more diverse supply chain for mands. Among the big unaddressed questions is whether Afri- onshore construction. ca can emerge as a serious contender, in either regional import or export markets.

Impacts on Safety

Of signi? cant interest to class is the impact this rapid change

New Facilities may have on the evolution of rules, regulations and technol-

A combination of policy changes and expectations of an ac- ogy behind FLNG newbuilds and particularly on conversions. celerated approval process has prompted established develop-

The potential growth in new FLNG projects in developing ers to talk of ramping-up LNG export projects, with facilities markets places a number of ? rst-of-their-kind projects in loca- getting the green light as ? nance becomes available. tions with no previous operational experience with the appli-

Projects will each take a unique approach to funding, re- cable rules and regulations for this technology.

lying on a combination of equity investment, bank debt and

Projects classed by ABS include innovative and novel con- other options. The ? nance community backing US projects cepts, thus prompting close attention from regulatory authori- are less likely to be constrained by withdrawal of funding for ties which have not worked with these types of projects.

LNG projects or requirements to meet strict environment, so-

ABS can help project developers present their case with cial and governance credentials. appropriate risk and impact mitigations which will help to

This could lead to faster funding rounds or loans based around streamline the project approval process. With years of experi- achieving export targets that the US government wishes to see.

ence of being ‘? rst-to-market’ with FLNG projects, ABS can

Among the projects to have bene? tted from this change - draw on this expertise to assist project developers.

Venture Global CP2, Woodside LNG, Glenfarne Texas LNG

ABS has experience supporting some of the industry’s most and Next Decade Rio Grande Expansion - are slated for ? rst complex FLNG projects working directly with clients and the gas production from 2026. By 2028 they could be provid- authorities responsible for regulating these projects. In both cases ing an additional 63 mtpa into international markets. Current we provide design approval and certi? cation as well as providing demand is around 475 mtpa, which is expected to grow to guidance on rulemaking for regulators and training for personnel.

around 670 mtpa by 2028, according to the Global LNG Out-

The Author look 2024-2028, published by the Institute for Energy Eco- nomics and Financial Analysis.

Roberts

However production developments in new markets will

Terrance serves as Global Business Development

Manager, Global Offshore, FLNG, focusing on cap- face different challenges in terms of infrastructure and proj- turing opportunities in the fast-paced FLNG market, ect ? nance. Capacity remains limited in some countries, with by supplying critical risk mitigation guidelines to potential project developers, ensuring their projects congestion causing long wait times for LNG vessels in addi- adhere to industry regulatory codes and standards. tion to pipeline issues and storage constraints.

www.marinelink.com 37

MR #6 (34-45).indd 37 MR #6 (34-45).indd 37 5/31/2025 7:53:08 PM5/31/2025 7:53:08 PM