The latest infographic from LNG World Shipping shows that demand for FSRUs is beyond question – but how quickly will the orderbook grow?
Once a year, LNG World Shipping produces an infographic to show the world’s existing and planned fleet of floating storage and regasification vessels (FSRUs).
These floating import terminals have transformed the LNG supply chain since the first vessel launched 12 years ago.
It is so much cheaper and quicker for a would-be importer to charter an FSRU than to build land-based infrastructure. Some use FSRUs as a stop-gap, building on-shore infrastructure when demand for gas has grown.
FSRUs were the hot topic at Gastech in Tokyo this year. And little wonder – our research shows that some 50 countries want to charter their first or additional FSRUs.
A new report from the Oxford Institute of Energy Studies (OIES) predicts that there will be up to 50 floating LNG-import terminals around the world by 2025. Gas-for-power projects will drive that demand, the study says.
There is no question about global demand for gas or that importers need to take delivery of that gas. But just three unfixed vessels are being built, having been ordered on spec.
We are not yet seeing newcomers rush to order or convert FSRUs. And there is still some capacity available. Our infographic shows just 23 vessels fixed as FSRUs; four more are working as LNG carriers or are unfixed.
Why is this the case?
We think it’s because the first generation of FSRUs is due to renew its contracts. Owners are waiting to see what rates and terms these older ships fix, before deciding whether to build or convert additional FSRUs.
Although FSRUs have huge potential, this growing market is not for wimps…
Click here to follow our coverage of global FSRU demand on LNGworldshipping.com