The Capital Expenditure (Capex) for FLNG Vessels is Expected to Amount to $35.5bn Over 2015-2021

Date: 2015-08-04

Floating LNG Industry Set for Landmark Project Start-ups and Further New Wave of Growth

Despite a current pause in commitments to new projects, the capital expenditure (Capex) for FLNG vessels is expected to amount to $35.5bn over 2015-2021. Spending on FSRUs will total $22.8bn over the same period, taking the combined expenditure for the Floating LNG market to $58.3bn.

There is a huge interest in the pioneering projects that will drive market spend over the coming years. Future commitments by operators to the FLNG market hinges on the success of these pioneering projects.

The delivery of Petronas’ PFLNG 1, also known as the PFLNG SATU, will be the world’s first FLNG vessel to start operations on its completion by the end of 2016. This will be followed by Shell’s Prelude FLNG vessel, a significantly larger project and one that is likely to shape future FLNG developments. Construction of the 488 metres long facility started in 2012 (the unit is being built by Samsung in Korea) and is expected to start up by 2017.

Following these projects is a second wave of new projects that are yet to be sanctioned but are expected to drive a growth in expenditure from 2019 onwards. This includes major projects in frontier regions such as East Africa.

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