Introduction
to Floating Storage and Regasification Unit (FSRU) Market
A
floating storage and regasification unit or FSRU is a crucial component needed
when liquefied natural gas (LNG) is transferred and transitioned with the use
of oceanic channels. FSRU is also called a special type of ship, which is used
only when LNG needs to be transferred around the world. The strong demand for
liquefied natural gas across various regions in the world has boosted the
demand for floating storage and regasification units.
The
demand for Floating
Storage and Regasification Unit Market can surge in the coming years,
given the constantly booming Liquefied Natural Gas (LNG) industry. This has led
to tremendous economic growth in a variety of countries all over the world,
since it is environmental-friendly and can be adopted more in the near future
as it helps bring down the carbon emissions.
There
have been some discoveries in offshore regions, which have resulted in the
fulfillment of demands made by several sectors, like power generation as a
feedstock for petrochemical manufacturers, transportation, and others. FSRU
helps on-time delivery of natural gas and helps make it available to local
markets. FSRU is expanding significantly to cater to the demand for green fuel.
History
of FSRU
FSRU
was introduced almost 15 years, specifically in the early 2000s. At present,
there are almost 26 FSRUs across the globe, out of these almost 23 works as
terminals, three are used as LNG tankers, and close to 11 are still under
construction. The FSRU is also growing on the back of scheduling, lower cost
and commercial flexibility. It has gained high favor among countries that have
to deal with land constraints, for the construction of various stationary
onshore regasification facilities which can take years to not only build but
also commission and operate. As a result, FSRU is the ideal solution as it can
be used at any location.
With
the expanding CNG and LNG sectors thanks to their low cost, reduced carbon
emission as well as easy transportation facilities, the demand for FSRU has
elevated tremendously in recent years. FSRU has gained momentum owing to its
benefits including technology feasibility, flexibility, availability and
mobility.
Asia
Pacific and Middle East & Africa to generate highest demand for Floating Storage
& Regasification Unit (FSRU)
The
demand for FSRU is highest in those regions where the need for natural gas is
high. The easiest option for these regions is LNG imports, where FSRU or
Floating Storage & Regasification Unit terminals offer the best alternative
for LNG imports, compared to the terminals that are land based, owing to the
former’s low cost, fast project turnaround time as well as great flexibility.
Emerging
nations in the Asia Pacific region, mostly Southeast Asia along with the Middle
East & Africa re expected to generate more demand for FSRU in the upcoming
years.
No comments:
Post a Comment