Page 62: of Offshore Engineer Magazine (Mar/Apr 2025)

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TECH FILE FLNGs a knock-on effects to global balances, helping to propel First, it allows developers to access remote reserves that

LNG prices to an all time high, according to IEA data. may be unreachable for traditional facilities and second it

As the needs of these importers continue to mature, oth- enables faster development. In cases where onshore gas is er markets are expected to grow and others emerge as the not present in high enough quantities to warrant a tradi- second half of the decade progresses. tional onshore liquefaction facility, FLNG capacity to scale

China remains the largest importer of LNG, though to provide an opportunity to monetise these resources.

there is some uncertainty as to how tariffs will impact this. An FLNG facility can be deployed a lot more quickly

India is also increasing its exposure to LNG imports, with than an onshore facility. This has the potential to shorten energy companies recently announcing offtake agreements. the return on investment cycle, which could lead to accel-

Other potential markets that are seeing growth are in erated funding approvals, with reduced environmental im-

Southeast Asia, including Thailand, Vietnam and the Phil- pact making it easier to get required regulatory approval, ippines, which are expanding their infrastructure to meet all of which make these projects potentially more attractive energy demands. Among the big unaddressed questions is to investors.

whether Africa can emerge as a serious contender, in either The ultimate ambition would be to develop plug and regional import or export markets. play solutions and FLNG has the potential to bring LNG export capabilities to a region quickly and with the most viable business case.

New Facilities

Their combination of greater mobility, higher energy ef-

A combination of policy changes and expectations of an fciency compared to onshore facilities and modular con- accelerated approval process has prompted established de- velopers to talk of ramping-up LNG export projects, with struction means a facility can be built and shipped from one location rather than relying on a more diverse supply facilities getting the green light as fnance becomes available.

Projects will each take a unique approach to funding, chain for onshore construction.

relying on a combination of equity investment, bank debt and other options. The fnance community backing US

Impacts on Safety projects are less likely to be constrained by withdrawal of Of signifcant interest to class is the impact this rapid funding for LNG projects or requirements to meet strict change may have on the evolution of rules, regulations environment, social and governance credentials. and technology behind FLNG newbuilds and particu-

This could lead to faster funding rounds or loans based larly on conversions.

around achieving export targets that the US government The potential growth in new FLNG projects in develop- wishes to see. ing markets places a number of frst-of-their-kind projects

Among the projects to have beneftted from this change in locations with no previous operational experience with - Venture Global CP2, Woodside LNG, Glenfarne Texas the applicable rules and regulations for this technology.

LNG and Next Decade Rio Grande Expansion - are slated Projects classed by ABS include innovative and novel for frst gas production from 2026. By 2028 they could concepts, thus prompting close attention from regulatory be providing an additional 63 mtpa into international authorities which have not worked with these types of markets. Current demand is around 475 mtpa, which is projects.

expected to grow to around 670 mtpa by 2028, according ABS can help project developers present their case with to the Global LNG Outlook 2024-2028, published by the appropriate risk and impact mitigations which will help

Institute for Energy Economics and Financial Analysis. to streamline the project approval process. With years of

However production developments in new markets will experience of being ‘frst-to-market’ with FLNG projects, face different challenges in terms of infrastructure and proj- ABS can draw on this expertise to assist project developers.

ect fnance. Capacity remains limited in some countries, ABS has experience supporting some of the industry’s with congestion causing long wait times for LNG vessels in most complex FLNG projects working directly with cli- addition to pipeline issues and storage constraints. ents and the authorities responsible for regulating these projects. In both cases we provide design approval and cer- tifcation as well as providing guidance on rulemaking for

Floating Advantages

Floating LNG has specifc advantages in this context. regulators and training for personnel.

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