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Global Floating LNG Power Plant Market Size and Share Analysis 2023-2028
The Floating LNG Power Plant Market is projected to experience substantial growth, increasing from USD 580.5 million in 2023 to USD 708.3 million by 2028, with a Compound Annual Growth Rate (CAGR) of 4.06% over the forecast period (2023-2028).
A Floating LNG Power Plant (FLNG) is a specialized LNG power plant constructed on a ship or a barge equipped with LNG storage and offloading facilities.
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USD 708.3 Mn incremental growth between 2022 and 2027
Component Type, Vessel Type, and Geography
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The market faced negative impacts from the COVID-19 pandemic in 2020. However, it is presently on track to recover and reach pre-pandemic levels.
Looking ahead, the floating LNG power plant market is expected to be driven by factors such as the growing global population, which leads to an increasing demand for power, especially in developing countries with insufficient power infrastructures.
Conversely, the market may face constraints due to the high volatility and uneven prices of LNG.
Nevertheless, the adoption of LNG is anticipated to rise in the future, primarily due to the implementation of global emission norms. LNG, being a cleaner fuel, aligns with emission regulations. The International Maritime Organization (IMO) enforced reduced sulfur content in maritime fuel in 2020, likely leading to increased adoption of LNG as a bunker fuel. Additionally, the Offshore West Africa region is experiencing heightened oil and gas activity, presenting opportunities in the FLNG power plant market.
Asia-Pacific recently held a significant market share and is expected to remain the largest and fastest-growing market during the forecast period.
The market is segmented based on various factors, including component type, vessel type, and geography.
Segmentation by Component Type
Gas Engines or Gas Turbines
Steam Turbines & Generators
Segmentation by Vessel Type
Segmentation by Geography
Middle East & Africa
In 2022, the power barge segment commanded the largest market share in the global floating LNG power plant market. Furthermore, during the forecast period, this segment is projected to experience the fastest growth within the global floating LNG power plant market.
A power barge is a power plant facility installed on flat floating structures, unlike power ships, which lack self-propelled systems for mobility, resulting in lower production costs for barges. These barges are moved by smaller boats or ships, allowing for increased usable space within the vessel. The market for power barges is expected to witness substantial growth in the coming years, driven by the increasing adoption of floating LNG-based power plants in countries with lower capital expenditure for power generation or limited infrastructure availability.
Power barges offer numerous advantages that contribute to their adoption in the FLNG power generation segment. They enable cost-effective transportation of bulk goods, come in various sizes, and can navigate in low-tide waters while facilitating the transportation of cargo and power generation. However, it is important to note that each barge is specifically designed for a particular water body and can only operate in that location throughout its lifespan. If deployed in a different water body, proper tugging or assistance from a tugboat is required.
In December 2021, Wison Offshore and Marine entered into an MoU with MAN Energy Solutions for power solutions development. The collaboration aims to establish power barge and floating LNG-to-power projects, showcasing each party’s technological and application advantages. Therefore, considering these factors, the power barge segment is expected to maintain its dominance in the floating LNG power plant market during the forecast period.
In 2022, the Asia-Pacific region held the largest market share in the global floating LNG power plant market. Conversely, the Middle East & Africa region is projected to witness the fastest growth within the global floating LNG power plant market during the forecast period.
In the Asia-Pacific region, the energy supply-demand gap is often bridged by various sources, including coal, hydro, natural gas, nuclear, and renewable energy technologies. Many economies in the region have achieved a significant rate of electricity access. However, renewable energy sources have greatly improved power reliability, leading to lower potential for the development of the floating LNG power plant market in the region.
Despite this, several countries in Southeast Asia have adopted floating power plants to secure energy supplies. For instance, Malaysia’s electricity demand is expected to reach approximately 24 GW in 2039, prompting the government to implement measures such as floating LNG power plants to meet the growing demand. Similarly, the Sri Lankan government, in partnership with the Asian Development Bank, conducted a feasibility study in 2022 for a floating LNG power plant to diversify the country’s energy mix.
In 2023, Petronas contracted Kejuruteraan Asastera (KAB) to develop and commission a 52MW floating LNG power plant worth USD 52.2 million in Sabah. The project’s development work is scheduled to commence in the second quarter of 2023. Additionally, Indonesia received a floating power barge in 2022 designed to operate on LNG, aiming to address power generation needs in remote areas of the country and reduce dependence on rented power generation barges.
Considering these factors, the Asia-Pacific region is expected to dominate the floating LNG power plant market during the forecast period.
The market for floating LNG power plants exhibits a moderate level of consolidation. Among the prominent participants in this market, listed in no particular order, are Wison Group, Kawasaki Heavy Industries Ltd, Wartsila Oyj Abp, Chiyoda Corp, and Karadeniz Holding.
Key companies profiled in this report include Kawasaki Heavy Industries Ltd, Siemens Energy AG, Waller Marine Inc., Wison Group, Chiyoda Corporation, Karadeniz Holding.
Recent Industry Developments
In January 2023, GasgridFinland successfully integrated the LNG floating storage and regasification unit (FSRU) Model into its gas transmission network, marking the inauguration of the country’s inaugural FSRU-based terminal located in the deep harbor at Inkoo. The terminal is now fully prepared for commercial operations. The LNG floating terminal vessel, with a length of 291 meters, has a capacity to hold approximately 68,000 tonnes of liquefied natural gas (LNG), which corresponds to about 1,050 GWh of energy.
During October 2022, Karpowership, a Turkey-based company, engaged in negotiations with four European nations to supply power ships. These European nations are seeking to address power deficiencies during the winter season and are in discussions with the company to secure 2 GW-capacity floating LNG power plants. Karpowership possesses eight energy ships, boasting a combined capacity of 2 GW, capable of providing electricity to approximately five million households while supporting district heating systems in four countries. Its largest vessel is equipped with an installed capacity of 500 MW.
Key Questions Answered
What is the study period of the Floating LNG Power Plant Market?
The study of the Floating LNG Power Plant Market spans from 2018 to 2028.
What is the growth rate of the Floating LNG Power Plant Market?
The Floating LNG Power Plant Market is experiencing a Compound Annual Growth Rate (CAGR) of 4.06% over the next 5 years.
What is the size of the Floating LNG Power Plant Market?
The Floating LNG Power Plant Market is projected to reach USD 580.5 million in 2023 and is expected to grow at a CAGR of 4.06%, reaching USD 708.3 million by 2028.
Which region exhibits the highest growth rate in the Floating LNG Power Plant Market?
The Europe, Middle East, and Africa (EMEA) region demonstrate the highest CAGR over the period from 2018 to 2028.
Which region holds the largest share in the Floating LNG Power Plant Market?
As of 2021, the Asia Pacific region holds the highest market share.
Who are the key players in the Floating LNG Power Plant Market?
The major companies operating in the Floating LNG Power Plant Market include Kawasaki Heavy Industries Ltd, Wartsila Oyj Abp, Chiyoda Corp, Wison Group, and Karadeniz Holding.