The global Floating Liquefied Natural Gas (FLNG) Terminals Market is poised for significant transformation, driven by the global transition to cleaner energy, the need for energy accessibility, and growing demand for natural gas across sectors. Valued at US$ 21.3 Bn in 2023, the market is projected to expand at a robust CAGR of 11.3% from 2024 to 2034, ultimately reaching a staggering US$ 68.9 Bn by 2034.
What Are FLNG Terminals?
FLNG terminals are offshore facilities that combine the functions of production, liquefaction, storage, and offloading of natural gas directly from deep-sea gas fields. These floating platforms bring together technologies from offshore oil & gas, marine engineering, and LNG production sectors, enabling efficient energy delivery to onshore locations without relying on traditional land-based infrastructure.
Due to their flexibility, fast deployment schedules, and cost-effectiveness, FLNG terminals are becoming increasingly popular as global energy stakeholders look for sustainable alternatives.
Decarbonization Driving Demand for FLNG
A key driver propelling the growth of FLNG terminals is the global focus on reducing carbon emissions. As countries and corporations aim to decarbonize their operations, natural gas has emerged as a “bridge fuel” — cleaner than coal and oil and widely available. The use of LNG, with its lower greenhouse gas emissions and higher efficiency, is rapidly gaining traction across industrial, residential, and transportation sectors.
Global CO₂ emissions from fossil fuels still stand at approximately 34 billion tons per year, and a transition toward gas is seen as a vital step to meet climate goals. FLNG facilities play a critical role in unlocking stranded offshore reserves and bringing LNG to regions that are shifting away from diesel or coal dependency.
Natural Gas in Transportation Sector Fuels FLNG Expansion
Another compelling growth catalyst is the adoption of LNG in the transportation sector. LNG vehicles emit significantly less NOx, SOx, and particulate matter compared to diesel-powered engines. Cities like New Delhi have recorded measurable air quality improvements after switching public transport fleets to natural gas.
The U.S. Department of Energy reported a 53% rise in hybrid electric vehicle (HEV) sales in 2023, highlighting a growing shift toward alternative fuels, including natural gas-powered mobility. As the demand for LNG-powered vehicles grows, FLNG terminals will play a pivotal role in supplying clean fuel for this transition.
Technology Advancements and STS Innovations
A defining feature of FLNG terminals is their modular and adaptable design, allowing producers to liquefy and store gas directly offshore. Once liquefied, the gas is transferred to carrier vessels via advanced Ship-to-Ship (STS) methods — including side-by-side, tandem, and parallel positioning — all using cryogenic loading arms capable of withstanding temperatures as low as -163°C (-261.4°F).
Major industry players are investing in R&D to optimize modular solutions for pretreatment, liquefaction, mooring, and transfer systems. These advancements aim to reduce operational risks, enhance safety, and cut down project costs and implementation time.
Asia Pacific Leads Global FLNG Adoption
From a regional standpoint, Asia Pacific dominated the FLNG market in 2023. Surging demand for natural gas and hybrid vehicles, along with government incentives and infrastructure expansion, is fueling growth in the region.
India, for instance, has unveiled plans to triple its network of CNG refueling stations by 2030, rising from 6,000 to over 17,700 stations. Similarly, China, Japan, and ASEAN countries are ramping up LNG imports to power their growing economies while striving for lower emissions.
Asia Pacific’s energy security strategy is also centered on diversification of supply sources, and FLNG terminals offer a flexible and scalable solution to import LNG from remote offshore fields.
Competitive Landscape and Strategic Developments
The FLNG terminals market is highly competitive and innovation-driven. Key players such as Mitsui O.S.K. Lines, Höegh LNG, Shell, Golar LNG, Excelerate Energy, ABB, and PETRONAS are actively expanding their project portfolios and strengthening their technological capabilities.
In May 2024, Mitsui O.S.K. Lines signed a long-term LNG carrier charter with JERA Co., aiming to ensure stable LNG supply in Asia. Around the same time, Höegh LNG Holdings Ltd. partnered with EGAS and Australian Industrial Energy to deploy a Floating Storage and Regasification Unit (FSRU) in Egypt, enhancing regional energy security.
These partnerships reflect a growing trend of public-private collaborations, where technology providers and energy corporations work together to deploy FLNG infrastructure in strategically important regions.
Outlook: FLNG Terminals to Anchor the Future of LNG
As the global energy market pivots toward sustainability and energy accessibility, FLNG terminals are emerging as game-changers. They not only offer a cleaner alternative to coal and oil but also unlock reserves previously considered economically unviable.
The combination of technological innovation, government support, and increasing LNG demand is setting the stage for strong market expansion. From mobility to power generation and industrial processes, floating LNG infrastructure is bridging gaps between offshore supply and onshore demand.
With a projected market size of US$ 68.9 Bn by 2034, the FLNG industry is on track to become a vital pillar of the global energy transition.
