Middle East FLNG Market size is estimated to show tremendous growth from 2021 to 2027 on account of rising demand for clean fuel technologies coupled with increasing focus toward sustainable energy. Ongoing measures to decrease carbon footprint along with rapid depletion of fossil fuel will foster positive business outlook. In addition, paradigm shift toward offshore natural gas extraction and processing operations will facilitate positive industrial spectrum.
The outbreak of COVID- 19 has impacted demand for oil and gas in the Middle East region. Movement restrictions to contain the virus have drastically decreased the usage of industrial activity, automobiles, shipping, and transportation. However, with ongoing ease in lockdown measures in the Middle East region have increased the economic activity along with rebounding the fuel demand.
Ability of natural gas for safer, cleaner and cost effective than fossil fuels along with its potential to reduce greenhouse gas emissions will boost the FLNG market demand in Middle East. FLNG terminal caters cost efficient solution for processing, storing and liquefying natural gas in offshore coupled with economic viable techniques for standard field development will further fuel the market growth. Moreover, rising consumption of natural gas combined with ongoing development of various offshore gas projects will stimulate the market expansion.
Floating Storage Regassification Unit (FSRU) is a storage vessel for liquefied natural gas (LNG) and consists of a regasification plant that converts LNG into various gaseous form and transports it directly to end gas facilities. Vessel’s less space requirement, enhanced flexibility, fast track implementation and low investment costs coupled with its wide applicability across the region will fuel demand for FSRU.
Mid/Small-Scale capacity ships will anticipate rapid deployment through 2027 owing to short development schedule and low capital cost. Moreover, the FLNG facilities are mostly deployed in economically unfeasible stranded reserves to produce through other units. Funding activities coupled with ongoing government projects to promote the construction of new floating import units and enhance the national infrastructure will augment the market landscape. Additionally, growing demand for cost-effective and flexible LNG distribution units will further complement the industry outlook.
UAE FLNG market revenue is poised to expand at substantial CAGR during the forecast period, propelled by rising investment toward infrastructure development along with ongoing government initiatives for clean fuel energy. Substantial financial support for stranded gas reserves development across the country will impel the industry size. For instance, in 2020, world’s second largest offshore field located off the coast of Abu Dhabi will be functioned by Zakum Development Company (ZADCO) which is a JV of Abu Dhabi National Oil Company (ADNOC), the Japan Oil Development Company (Jodco) and ExxonMobil to enhance the field’s capacity. In addition, rising energy demand along with increasing number of projects across Middle East region will further drive the market demand.
Prominent participants operating across the Middle East FLNG market include Wison Offshore & Marine, The Linde Group, Golar LNG, Höegh LNG, Excelerate Energy, Black & Veatch, Shell, Petronas, Woodside Petroleum, KBR Inc. and Noble Energy. Additionally, key shipbuilders operating in the industry include Hyundai Heavy Industries and Mitsubishi Heavy Industries.