Forecast FLNG spend of over $41 billion following wave of landmark projects

Global capital expenditure (Capex) on FLNG facilities is forecast to increase significantly over the 2016-2022 period, exceeding $41.6 billion.

Despite challenging market conditions, global capital expenditure (Capex) on FLNG facilities is forecast to increase significantly over the 2016-2022 period. The protracted oil price downturn has impacted the sanctioning of capital intensive liquefaction units over the last 24 months. However, the need to move towards cleaner sources of energy and diversify gas supply has stimulated the floating regasification market – over 14 countries are expected to commission their first floating import unit over the forecast period.

These are some of the findings from Douglas Westwood’s (DW) latest World FLNG Market Forecast with global FLNG Capex expected to total $41.6 billion (bn) during 2016-2022, compared with $11.4bn 2011-2015 – an increase of 264%. Report author, Mark Adeosun, commented, “Liquefaction vessels will account for approximately 59% of forecast expenditure, with the remaining 41% allocated to import and regasification terminals. Near-term growth in expenditure will be predominantly driven by a number of flagship liquefaction projects sanctioned prior to the oil price downturn.

“Global expenditure is expected to peak in 2017 as the first wave of sanctioned projects come onstream. Reduced project sanctioning will likely impact the market towards the end of the decade – with expenditure forecast to decline significantly in 2019 – before stagnating over the 2019-2021 period. Long term prospects are positive; a marginal uptick in spending is expected in 2022 driven by the sanctioning of a second wave of capital intensive liquefaction projects. Over the forecast period, Africa and Asia will be key areas for liquefaction and regasification units – with both regions accounting for 54% of total global expenditure. Spend in Australasia is set to decline post 2018 after the installation of the Prelude FLNG.

“Despite near-term concerns, the long-term viability of FLNG technology is clear. In the decades ahead, natural gas will continue to play an increasingly important role in meeting global energy demand. Furthermore, the rising cost of onshore development terminals and the shorter lead times of floating units make the technology a viable option in the current market environment.”

Read more: http://www.douglas-westwood.com/report/oil-and-gas/world-flng-market-forecast-2017-2022/

About Douglas-Westwood:
Established in 1990, Douglas-Westwood is a leading provider of market research & consulting services to the energy industry worldwide. We have completed 1,100 projects for clients in more than 70 different countries and in some 250 niche energy segments, our work attracting over 20 industry awards. Our clients range from the oil & gas majors and their contractors to financial houses & governments.

Contact:
Douglas-Westwood,
Abbey House,
20 East Street,
Canterbury - ME13 8AS,
England, United Kingdom,
Phone: (+0044) - 20347799505,
E-Mail: oliver.solly@douglaswestwood.com
http://www.douglas-westwood.com


Contact Details

Company Name: Douglas-Westwood
Issued By: Oliver Solly
Phone: 20347799505
Address: Abbey House, 20 East Street, Canterbury - ME13 8AS, England, United Kingdom
City: Canterbury
State: England
Zip: ME13 8AS
Country: United Kingdom
Website: Visit the website

Keywords : Floating LNG, liquefied natural gas, flng expenditure,

by Oliver Solly (few years ago!)

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