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Floating LNG: Introduction
The floating LNG is a method that involves LNG operations, and other processes are performed to build natural gas reserves offshore. This method produces liquid, stores and moves LNG from offshore reserves to onshore. It is utilized in areas in which natural gas is not transported via pipelines. The total capacity of an LNG system within a floating LNG facility is one-third that of the typical LNG facility.
The Global Floating LNG Market Forecast:
FLNG market size for 2016 was estimated at more than USD 10 billion. It is expected to reach 300 MTPA by 2024.
The global Floating Liquefied Natural Gas (FLN) Market is projected to grow by approximately 4.68 Billion over the forecast period 2021-2025. And it will be increasing at a CAGR of 6.12% during the timeframe of the forecast.
Market Trend and Dynamics of the Global Floating LNG Market:
There are major factors which are driving the market. Those factors are rising demand for energy security and environmental policies, which favour the market.
The Growth of the LNG market is favoured due to its Eco-Friendly Nature and Environment Policies:
Natural gas power plants are being popular nowadays since it is greener than fossil fuels available. It is a green-burning fuel, as it releases 30% and 45% less carbon dioxide(co2) than coal and oil, respectively. Additionally, it doesn't release sulfur emissions. It isn't as pure as wind or solar energy sources, but it is the purest of the available fossil energy sources.
Natural gas is an odourless chemical, non-corrosive, and safe gas. It quickly evaporates, leaving no traces in soil or water. It is highly sought-after all over the world to cut down CO2 emissions. It is the European Commission aims to reduce greenhouse gas emissions by 40% by 2030 in comparison to 1990. Since natural gas has no odour and smells clean, mercaptan is incorporated into it to detect gas leaks. The Department of Energy(DOE) approved the first floating LNG project in the USA in the year 2017 to export LNG to countries that do not have free trade agreements with the U.S. These policies are driving the expansion of the global floating LNG Market.
Rising Demand for Energy Security"
Based on the data provided by International Gas Union(IGU), the LNG trade reached 354.7 MT in the year 2019. There were 37 LNG importers in the year 2019. In 2020 the number of importing countries was 43 while there were 20 exporting nations was 20, while global LNG trade reached 356MT.
There is an enormous market of LNG in the Asia-Pacific region, which held the largest market share, accounting for 71% of the global trade in the year 2020. Due to the lockdowns of covid-19 and other restrictions, the LNG prices were relatively low in 2020. This was, as a result, imports grew because of countries that prefer natural gas in preference to other sources of energy such as coal for energy generation.
Unaffordable and unreliable clean green energy is a huge problem in both developing and developed countries which is why using natural gas as a fuel source is an ideal solution for the issue since natural gas happens to be the purest burning fuel available.
LNG enhances global energy security. Large importers such as European nations as well as India are focusing on building larger regasification plants( transformation of LNG into natural gas). In the U.S., natural gas is also used to supply the requirement to heat homes in winter.
The U.S.'s use of renewable energies was higher than the consumption of coal in December of 2020. The design and construction of floating LNG systems is hampering the expansion of this market.
The Key Market Segmentation of the Global Floating LNG Market:
This Research Report Categorized The Global Organic Yeast Market Based on Terminal Types, Capacity, and Geographical Landscape.
Floating LNG Market Segmentation By Terminal Type:
Floating LNG Liquefaction Terminal, Floating LNG Import Terminal
Floating LNG Market Segmentation By Capacity:
Large Scale, Small Scale, Mid-Scale,
Floating LNG Market Segmentation By Geographical Landscape:
North America, Europe, Asia Pacific, South America, Middle East and Africa,
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Major Key Players in the Global Floating LNG Market Are:
The Covid-19 Impact Analysis:
The Global Floating LNG has experienced an increase in its production because of the COVID-19 pandemic as there were full or partial lockdowns in a number of countries around the world because of which many FLNG projects were delayed and the delivery of numerous FLNG vessels was delayed, for example On April 12, 2021. The first Indian FSRU Hoegh Giant arrived in Maharashtra at the Jaigarh terminal of H-Energy that was delayed because of covid-19.
Major companies have stopped their operations, and Vessels such as Norway Hoegh LNG, which is based in Norway Hoegh LNG imposed a lockdown without crew members on the vessels because of covid-19.
However, the LNG market did not suffer by covid-19 since the global demand for LNG up by 360 million tonnes by 2020, up from 358 million tons in the year 2019. The increased demand in LNG from Asian countries helped to save the market since both China as well as India were able to import 11% greater LNG by 2020. Demand for electricity and power can also drive the LNG market, as prices were lower in covid-19, and people favoured LNG over coal to power production, particularly within South Korea and Japan.
In December of 2019, the price of LNG was around USD 9-10 per MMBtu. This was nearly half by the middle of 2020. Exports of LNG were also cut off at the midpoint of 2020. The economic situation in the U.S. was also affected due to the drop in LNG rates throughout Asia as well as Europe.
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