The Floating Liquefied Natural Gas (FLNG) solution is gaining recognition as an effective means for economic monetization of stranded offshore gas reserves, or in specific cases, near shore/onshore reserves with insufficient local or regional markets. It is also being considered as an efficient and economic alternative to mid size (2 – 4 MTPA), and smaller (0.5 – 1.0 MTPA) land based liquefaction facilities. Significant inefficiencies in natural gas pricing across the world due to supply/demand imbalances, combined with recent finds of additional stranded offshore gas reserves as well as shale gas discoveries could help FLNG solutions capture a key portion of the natural gas value chain. The market for FLNGs over the next ten years is expected to follow a growth trajectory set by the downstream equivalent of FLNG; the floating storage and regasification unit (FSRU) industry over the last decade. The comfort and acceptance of floating LNG technology, and the economic advantages to many of the world's developing natural gas markets in the FSRU space suggest equal acceptance and opportunity for the FLNG upstream segment. The FLNG market in the next decade presents, strategic developers and financial investors, under the right circumstances, an opportunity to participate and create value, in this new energy infrastructure segment.
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