Cash spent on the fast emerging floating liquefied natural gas sector is expected to crack $23 billion by 2016.
Cash spent on the fast emerging floating liquefied natural gas sector is expected to crack $23 billion by 2016, with Asia accounting for 23% of that. The British classification society forecast worldwide expenditure of floating offshore installations to reach $190 billion to $200 billion - including FLNG, floating production storage and offloading and floating storage units.
Asia, which is tiny in the FLNG sector now, will ensnare a fifth of global spending in future. "There are large gas fields in Asia-Pacific - the ones discovered in Australia and Indonesia. Some are stranded gas reserves. To get to the gas, you need large structures to transport LNG to markets," Ron Edgar, Lloyd's Register's floating offshore installations global business manager told.
"I am bullish about Asia generally despite the downturn last year. The floating offshore installations will be needed because exploration works are moving into deeper and deeper waters." He added that Asian shipyards would be well-placed to build the lion"s share. The price tag of a typical FLNG storage facility, measuring 500 metres by 80 metres, ranges from $2.5 billion to $3 billion.