FSRU (Floating Storage and Regasification Unit) Market size was valued at USD 1.9 Billion in 2022. The FSRU (Floating Storage and Regasification Unit) market industry is projected to grow from USD 2.1 Billion in 2023 to USD 3.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.90% during the forecast period (2024 - 2032). The cost-effectiveness of FSRUs, rising natural gas demand, and stabilising prices for crude oil globally, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Building an FSRU costs about USD 300 million, which is nearly half as much as building an onshore facility. These FSRUS are also cost-competitive and time-sensitive because they can be operational in a year, which is at least 6 times faster than an onshore facility of a similar scale. Both emerging nations and developed nations on the LNG market are able to quickly build their regasification facilities thanks to this cost competitiveness. As an illustration, Croatia, a nation with a developing LNG market, began importing LNG by putting in place its first FSRU with a 1.9 MTPA capacity. Similar to this, Brazil and India, two nations with established LNG markets, have increased the capacity of their regasification facilities by starting up two and one FSRU, respectively. India recently (March 2022) received its first FSRU vessel, which docked at the Jaigarh terminal of H Energy Group in Maharashtra. The new FSRU has an established regasification capability of 750 million cubic feet per day and a storage capacity of 170,000 cubic metres.
A hybrid shipping vessel is used by an FSRU to transfer LNG from the point of production to various locations across the globe. These ships help meet the electricity needs of diverse end users and provide a solution to the fuel scarcity. Additionally, they provide rapid LNG transportation, which accelerates the use of FSRUs. The LNG is regasified on board these vessels, which are moored in ports or float at sea. The LNG is then pumped into the transmission network before being transported to the final consumer. A quick, inexpensive, and adaptable method of delivering natural gas to customers is provided by FSRUs. A floating LNG facility known as an FSRU can be quickly deployed for end-to-end transportation. The usage of FSRUs lessens the requirement for end-user countries to create a separate regasification unit because an FSRU does not require significant infrastructure. The expansion of the FSRU market is anticipated to be fueled by these competitive advantages provided by an FSRU as well as initiatives taken to increase the adoption of clean fuels and lower carbon emissions.
The quantity of barrels per day (bpd) of crude oil did not decrease internationally from 2014 to 2020, however there were still swings in the price of the commodity. Oil and gas E&P activities are impacted by these variations since they often depend on the revenue generated by industry participants. Many exploration and production (E&P) activities were suspended as a result of the drop in crude oil prices in 2014 and 2020. Thus, driving the FSRU (Floating Storage and Regasification Unit) market revenue.
The FSRU (Floating Storage and Regasification Unit) market segmentation, based on Construction, includes newly built and converted. Newly built segment dominated the market in 2022. This is as a result of the rising natural gas demand.
The FSRU (Floating Storage and Regasification Unit) market segmentation, based on Storage, includes small, medium, and large. Medium segment dominated the market in 2022. During the projected period, medium storage type is anticipated to expand at the greatest CAGR. Since most FSRU (Floating Storage and Regasification Unit) vessels used recently are of a medium size, the demand for FSRU units with a medium storage capacity is anticipated to be stable over the course of the forecast year.
The FSRU (Floating Storage and Regasification Unit) market segmentation, based on Application, includes Industrial, Power Generation, and Others. Power generation segment dominated the FSRU (Floating Storage and Regasification Unit) market in 2022. This is due to an increase in LNG demand for power generation projects around the world.
Figure 1: FSRU (Floating Storage and Regasification Unit) Market, by Application, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America FSRU (Floating Storage and Regasification Unit) Market dominated this market in 2022 (45.80%). The fact that LNG is widely available for production and a significant supplier to the world is responsible for this increase. Further, the U.S. FSRU (Floating Storage and Regasification Unit) market held the largest market share, and the Canada FSRU (Floating Storage and Regasification Unit) market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: FSRU (Floating Storage And Regasification Unit) Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe FSRU (Floating Storage and Regasification Unit) market accounted for the healthy market share in 2022. This development is linked to the readily available and significant supply of LNG for production. Further, the German FSRU (Floating Storage and Regasification Unit) market held the largest market share, and the U.K FSRU (Floating Storage and Regasification Unit) market was the fastest growing market in the European region
The Asia Pacific FSRU (Floating Storage and Regasification Unit) market is expected to register significant growth from 2023 to 2032. Countries in the Asia-Pacific area have LNG markets that are both emerging and well-established. For instance, the LNG markets of China, India, South Korea, Japan, and Australia are well-established, whereas those of Indonesia, Pakistan, and Bangladesh are still in the early stages of development. Moreover, China’s FSRU (Floating Storage and Regasification Unit) market held the largest market share and the Indian FSRU (Floating Storage and Regasification Unit) market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the FSRU (Floating Storage and Regasification Unit) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, FSRU (Floating Storage and Regasification Unit) industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the FSRU (Floating Storage and Regasification Unit) industry to benefit clients and increase the market sector. In recent years, the FSRU (Floating Storage and Regasification Unit) industry has offered some of the most significant advantages to medicine. Major players in the FSRU (Floating Storage and Regasification Unit) market, including Excelerate Energy, Hoegh LNG, Golar LNG, BW gas, Gazprom FLEX LNG, Exmar, Maran Gas Maritime Inc., Offshore LNG Toscana SpA, Mitsui O.S.K. Lines, Bumi Armada, and Teekay Lng Partners, L.P, are attempting to increase market demand by investing in research and development Applications.
A multinational corporation called Karpowership owns and manages the only and largest fleet of floating power plants in the world, which consists of 36 Powerships and generates over 5000 MW of electricity for use in Latin America, the Pacific, Africa, and Europe. To provide LNG-to-power energy solutions to the nation, Karpowership South Africa has been founded as a totally autonomous local business. Before travelling to Rio de Janeiro in April 2022, Karpowership South Africa displayed a floating storage regasification unit (FSRU) ship in Cape Town.
An integrated oil and gas corporation is Helleniq Energy Holdings SA (Helleniq Energy), formerly known as Hellenic Petroleum Holdings SA. It uses a network of gas stations to refine, supply, sell, and market oil products, natural gas, and fuels in Greece and South-Eastern European markets. Greece's largest vertically integrated petrochemicals facility is owned and run by the corporation. Additionally, the business manufactures and refines polypropylene, propylene, solvents, and inorganics. Through import pipelines and the Revithoussa LNG terminal, it manages natural gas power plants and supplies, transports and trades natural gas. Additionally, it offers engineering and consultancy services to clients in Southeast Europe and holds stakes in a number of renewable energy installations. The main office of Helleniq Energy is in Maroussi, Greece. Ellison, a company owned by Edison in Italy and Hellenic Petroleum, will take the lead in advancing Greece's position. By putting in place a separate Floating Storage Regasification Unit in Thessaloniki, it will provide the shipping of liquefied natural gas to Europe. The business has asked the Regulatory Authority for Energy for an FSRU licence. By 2025, the project will be operational and will be developed in the Thermaikos Gulf off Thessaloniki.
April 2022: In 2022, the Executive Committee of EXMAR NV released its first-quarter results. It has a contract in place for the regasification barge FSRU USD 188 with GASUNIE.
| Report Attribute/Metric | Details |
| Market Application 2022 | USD 1.9 Billion |
| Market Application 2023 | USD 2.1 Billion |
| Market Application 2032 | USD 3.8 Billion |
| Compound Annual Growth Rate (CAGR) | 7.90% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Construction, Storage, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Excelerate Energy, Hoegh LNG, Golar LNG, BW gas, Gazprom FLEX LNG, Exmar, Maran Gas Maritime Inc., Offshore LNG Toscana SpA, Mitsui O.S.K. Lines, Bumi Armada, and Teekay Lng Partners, L.P |
| Key Market Opportunities | Digitization and cloud-based solutions |
| Key Market Dynamics | The cost competitiveness of FSRUs, growing demand for natural gas, and stabilization of crude oil prices |
FSRU Market Highlights:
Frequently Asked Questions (FAQ) :
The FSRU (Floating Storage and Regasification Unit) market Application was valued at USD 1.9 Billion in 2022.
The market is projected to grow at a CAGR of 7.90% during the forecast period, 2024-2032.
North America had the largest share in the market.
The key players in the market Excelerate Energy, Hoegh LNG, Golar LNG, BW gas, Gazprom FLEX LNG, Exmar, Maran Gas Maritime Inc., Offshore LNG Toscana SpA, Mitsui O.S.K. Lines, Bumi Armada, and Teekay Lng Partners, L.P.
The Newly Built Construction dominated the market in 2022.
The Medium Storage had the largest share in the market.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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