Floating liquefied natural gas (FLNG) terminals are rapidly gaining momentum on the global LNG market, with capacity projected to nearly triple by 2030, according to new research from Rystad Energy.
Once beset by technical and operational hurdles, FLNG projects have now reached utilisation rates comparable to traditional onshore LNG facilities, signalling a maturing technology that is reshaping the energy landscape.
Rystad Energy forecasts that global FLNG capacity will surge from 14.1 million tonnes per annum (Mtpa) in 2024 to 42 Mtpa by 2030 and further climb to 55 Mtpa by 2035 — nearly four times the current levels.
Existing FLNG terminals commissioned before 2024 posted an impressive average utilisation rate of 86.5 per cent in 2024 and 76 per cent so far in 2025, on par with global onshore LNG plants.
“FLNG has come a long way in less than a decade,” said Kaushal Ramesh, Vice President, Gas & LNG Research at Rystad Energy.
“The only real roadblocks were early teething issues that come with any new technology, as seen with projects like Shell’s Prelude, which faced cost overruns and unstable output.
“But since then, the industry has matured significantly, including Prelude itself.
“Utilisation rates are improving, the technology is proving reliable across a range of environments, and the economics are starting to make more sense.
“From navigating permitting challenges in Canada to unlocking remote offshore reserves in Africa and Asia, FLNG is finally going mainstream.”
Early pioneering projects, such as Shell’s Prelude built by the Technip–Samsung consortium in South Korea, initially exposed FLNG’s limitations with liquefaction costs soaring to US$2,114 per tonne.
However, as operational and construction experience accumulated, costs have steadily declined, aligning closer to those of onshore LNG developments.
Current proposed FLNG projects along the US Gulf Coast cite an average liquefaction cost of around US$1,054 per tonne.
Delfin FLNG (US) and Coral South FLNG (Mozambique) report costs of US$1,134 and US$1,062 per tonne, respectively.
Notably, some projects are fully integrated producers, including upstream components, whereas others focus purely on liquefying pipeline-spec gas, making direct comparisons complex.
Meanwhile, an increasing number of FLNG developers are pivoting towards cost-effective vessel conversions rather than newbuilds.
Conversion projects like Tortue/Ahmeyim FLNG (US$640/tonne), Cameroon FLNG (US$500/tonne), and Southern Energy’s FLNG MK II (US$630/tonne) have leveraged the modular spherical tank design of retiring Moss-type LNG carriers to integrate prefabricated liquefaction modules efficiently.
With several Moss tankers due for decommissioning in the near future, more low-cost repurposing opportunities are expected.
FLNG vessels have demonstrated remarkable operational flexibility, performing well in environments ranging from deepwater to ultra-deepwater fields and even supporting onshore supply chains.
Their mobility also allows relocation or sale if projects encounter delays, underscoring FLNG’s adaptability in a volatile market.
In today’s energy context, where tight markets face risks of oversupply, speed to first production is paramount.
Extended onshore construction timelines delay revenue and heighten exposure to cost overruns.
Rystad Energy data shows that FLNG projects can be delivered significantly faster, with newbuild FLNG facilities averaging about three years to completion compared to roughly 4.5 years (capacity-weighted) for onshore plants.
The FLNG vessels currently under construction are projected to have an even shorter build time of 2.85 years.
This accelerated timeline is emerging as a critical advantage, as developers seek to reduce risk and rapidly capitalise on market opportunities, further cementing FLNG’s role as a pivotal and flexible solution in the global LNG supply chain.
