GLNG: Floating LNG projects soar with $35bn worth of contracts to be awarded by 2027

Investment in floating liquefied natural gas (FLNG) production terminals is set to climb significantly in the next five years with $35bn in engineering, procurement and construction (EPC) contracts expected to be doled out, according to a report published April 4 by market research firm Westwood Global Energy Group.

Investments in the sector last year combined with planned investments anticipated between 2023 and 2027 are expected to add 18.3mn tonnes per year (tpy) of additional FLNG capacity by 2027 with an EPC value of $13bn. Meanwhile, 2027 is expected to see a further 36.5mn tpy of capacity added to the market at an EPC value of $22bn.

The FLNG sector’s breakneck growth has been sparked by record high gas prices in 2022 combined with Europe’s rush to wean itself off Russian pipeline gas imports following its invasion of Ukraine. While LNG export terminals typically take three to four years to construct, FLNG terminals can be built in less than a year, with Germany’s new FLNG facility at the port of Wilhelmshaven having been built in a record time of 200 days. And amid the shift away from Russian gas, Europe has increased its LNG import capacity by 34% from 2021 levels to 6.8bn cubic feet (192mn cubic metres) per day.