IMA Completes 12-month Study of the Floating Liquefaction and Regasification Market

World Energy Reports
Thursday, October 4, 2018

International Maritime Associates has just completed a 12-month study of the global market for floating gas liquefaction plants and floating LNG regasification terminals. The 150+ page study, published by World Energy Reports, is the most detailed analysis yet made of this growing business sector.

Project Success Evaluation
The IMA study is the first professional effort to systematically look at the universe of FLNG and FSRU projects in the planning stage – and categorize the likelihood of each making the development investment hurdle. Many FLNG and FSRU projects are planned – but only some will ultimately move forward to development. The goal of the study is to objectively sort out likely winners and losers – and explain the rationale for the rating.

Employing a qualitative analysis that reflects lessons learned from post-FID FLNG projects, IMA examines 29 floating liquefaction projects in the planning stage and provides its view of whether the project has a strong, fair or weak probability of moving forward. The probability rating is based on how the project scores in terms of drivers of project health and stockholder overlay considerations.

Drivers of project economic health

  • gas processing requirement
  • gas quality- liquids presence
  • upstream location
  • FLNG location
  • alternative gas commercialization possibilities
  • transport distance to the Chinese gas import market

Stakeholder overlay considerations

  • strength of the project promoter
  • strength of offtake buyer
  • government support for the project
  • ease of doing business in the resource country

A similar analysis is made of FSRUs in the planning queue. Based on lessons learned from FSRU terminals already in development, IMA provides its view of the probability that each of 47 FSRU terminals in the planning stage has a strong, fair or weak probability of moving forward. While the analysis is similar to that used for FLNGs, the success factors are more oriented to the commercial drivers influencing the investment decision in FSRU projects.

Drivers of project economic health

  • gas import demand driver
  • need for single or multiple gas offtakers
  • potential alternative sources of future gas supply
  • infrastructure requirements

Stakeholder overlay considerations

  • strength of the project promoter
  • strength of gas offtake buyer
  • government support for the project
  • ease of doing business in the resource country

Online FLNG/FSRU Database
IMA does more than just provide a snapshot of the floating liquefaction and regasification sector. Its new online fully searchable LNG database updates all FLNG and FSRU project information on a 24/7 basis. As IMA receives new information about projects from its network of industry contacts, the database is immediately updated to reflect the latest situation.

With access to the online database, users can access any FLNG project or FSRU terminal – in operation, under construction and planned – and immediately find the latest information on project status, along with any changes in timing and probability of the project investment decision. Contacts are also provided for follow up with key players.

Database users are able to select any combination of data about projects and export the data to excel for evaluation – or use the sophisticated sorting and graphics capability provided with the database for making comparisons and benchmarking.

The search capability is user friendly and our IT staff is available to assist with any issues or questions at any time.

Experience of Professional Team
The FLNG/FSRU study and database has been prepared by a small team of seasoned industry professionals with many years of hands-on experience in the offshore sector. The team’s direct experience in planning and executing FLNG and FSRU projects provides the foundation for a “reality check” evaluation of the likelihood that projects in the planning queue will go forward to development.

Jim McCaul, founder of IMA and co-founder of WER, is the principal analyst in the study. He has prepared more than 60 reports on the floating production business – and over the past 30+ years has been engaged as adviser by numerous clients in the offshore oil and gas sector. Jim has been advisor on planned FSRU projects in Ghana, Jamaica, India and elsewhere.

George Tilley, senior researcher, is a 30+ year veteran of the international oil and gas industry having worked in Brazil, Kazakhstan, India and Tanzania for BG Group. In his last assignment in Tanzania George was responsible for the commercial arrangements with partners and government for the proposed LNG project.

Our other senior analyst in the study has 30+ years of experience as offshore field development engineer in offshore oil and gas projects and has been directly involved with planning FLNG projects in Tanzania, Cameroon, Congo-Brazzaville, Brazil and elsewhere.


Order your 2019 Floating Liquefaction and Regasification Outlook here.


For more information contact Jean Vertucci - vertucci@worldenergyreports.com, 212-477-6944.

Categories: Offshore Energy LNG Floating Production FLNG

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