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Middle East and Africa to hold significant revenue share in FSRU market

Industry

The projected value of the global Floating Storage Regasification Unit (FSRU) market in 2018 is US$1,217.9mn, and the market is estimated to reach US$2,380.3mn by 2026 with a CAGR of 8.7 per cent, according to a report on FSRU market by Persistence Market Research

The global FSRU market is projected to create an incremental opportunity worth US$1,162.4mn during the forecast period, the report added.

FSRU 40 per cent more cost-effective than land-based terminals

FSRU is used for the conversion of LNG gas into a liquid state, as in its gaseous state, LNG occupies more space as compared to its liquid state. Increasing production of LNG, coupled with growing LNG trade volumes based on the high demand from importing countries is expected to drive the global FSRU market during the forecast period.

Moreover, FSRU required relatively less capital expenditure as compared to land-based terminals. Approximately, FSRU are 40 per cent cheaper as compared to land-based terminals, which in turn drives the growth of the floating storage regasification market.

On the flip side, the storage capacity of FSRU is a major restraint to market growth. For example, the most commonly constructed size for FSRU has a storage capacity of 173,000 cu/m. Only a few have larger capacities and built on custom orders.

The Middle East and Africa to grow with a significant CAGR in the global FSRU market

By regasification capacity, the above 5.5 mtpa segment dominates the global FSRU market as of 2018 while the less than 2.5 mtpa segment is estimated to capture more than an 80 per cent value share of the worldwide FSRU market by the end of 2026. Further, the 2.5-5.5 mtpa segment is expected to create an incremental opportunity worth US$175.06mn between 2019 and 2018.

By storage capacity, the up to 140,000 cu/m segment is expected to grow with a noteworthy CAGR in the FSRU market during the forecast period. In terms of value share, the 140,000 to 180,000 cu/m segment is expected to dominate the FSRU market throughout the forecast period. Interestingly, the value share of this segment in the FSRU market is expected to reach nearly 84.1 per cent by the end of 2026.

By platform, the offshore terminal segment is expected to grow with a considerable CAGR in the global FSRU market throughout the forecast period. But, in terms of value share, the inshore terminal segment is expected to account for an outstanding value share in the global FSRU market during the forecast period. Furthermore, the inshore terminal segment is projected to create a perfect opportunity 1.7X that of the offshore terminal segment in the FSRU market during the assessment period.

By design, the carrier vessel-based segment is expected to dominate the global FSRU market throughout the forecast period. The carrier vessel-based segment is expected to be valued at US$941.2mn in 2018.

By region, the Middle East and Africa region is expected to grow with a significant CAGR in the global FSRU market during the forecast period. It is expected to grow with a sizable value share throughout the slated time. Asia Pacific is expected to reach US$560.8mn by the end of 2026. The Americas region is expected to grow with a sluggish growth rate in the global FSRU market as compared to the other regions as the region is highly involved in the production of LNG. Europe is also projected to grow with a moderate CAGR in the global FSRU market during the forecast period, owing to the limited deployment of FSRU across Europe.

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