Global Floating LNG Power Plant Market - Growth, Trends, and Forecast (Outlook to 2028)

The growth of the Floating LNG Power Plant market is driven by increasing demand for clean electricity among end-use sectors and increasing urban population, and lack of power infrastructure across several nations, increasing the demand for floating power plants.

• Unlock smaller fields of stranded natural gas at remote locations for power generation.
• It reduces environmental impacts on It offers low capital cost and can help deliver the project on time.
• It helps avoid gold rush economies and develop the project at labor incentive markets.

The demand for power in the industrial sector exceeds the supply. As a result, several industries are facing an acute shortage of power. Therefore, the governments are encouraging and mandating efficient power consumption for the industrial sector to reduce the demand and supply gap. Additional power plants have also been set up as a permanent power solution. 

Several countries in the Asia Pacific, the Middle East, Africa, and South America have seen poor planning and shortfall in capital expenditure, which has created market opportunities for temporary power solutions and accentuated the need for non-renewable floating power plants. The lack of infrastructure has thus increased the demand for floating power plant solutions.

Floating LNG Power Plant is a specialized offshore vessel using LNG to generate electricity through onboard components such as steam generators and gas turbines. The Floating LNG Power Vessel has four functions in one unit, including LNG Loading Facility, LNG Storage, Regasification, and Gas fueled Power Generation. 

Some of the government supportive policies:

• Excise duties exemption for LNG, CNG, biogas, hydrogen, and biohydrogen in Poland.
• Increasing electricity generation based on natural gas in Lithuania, China, India, Hungary for change in climate and energy.
• The German government established innovation funding for shore power and the funding program for LNG refueling vessels. 
• Low Emissions Technology Demonstration Fund (LETDF) from Australia supports the demonstration of new, large-scale, low-emissions technologies that indicate significant long-term abatement potential.
• Financeable with U.S. Maritime Administration Title XI guarantees with terms between 12 and 25 years at 87.5% debt.

The advantages of Floating LNG power plant: 

• Distributed power source with stability and high efficiency
• Peak power source capable of quick start-up and responding to steep load fluctuation (Gas Engine Model).
• Towable, suitable for periodic and seasonal operation
• Heat and electrical power generation (CCPP Model)

Floating LNG Power Vessel Suitable Locations:

• Areas where the large electrical demand exists and are environmentally conscious, especially the greenhouse effect. 
• Areas remote from mainland/cities, and the electrical demand is small, i.e., small islands. 
• Areas that have poor electric power supply facilities and need an early response.
• Areas are close to large LNG supply bases.

Value Proposition:

• The market seeks lower-priced per unit cost of electricity with shorter delivery in response to low peak power cost.
• The key point for a floating LNG power plant is to optimize the facility arrangement and specifications, considering the specific feed gas composition, LNG production rate target, metocean conditions, at shore/nearshore / open sea arrangement, to improve the project economics.

Some of the Challenges:

• The increasing cost runs over costs due to the availability of FPSO vessels.
• Operating costs and environmental challenges are higher compared to onshore projects.
• The increasing popularity of distributed renewable energy generation.
• grid interconnection and operation and the development of transmission infrastructure

Some of the Restraints:

• Labour laws are associated with the countries.
• Price disparity across regional markets
• Increasing large-scale energy storage across utilities. 

Some of the Opportunities:

• Stringent emission norms in marine diesel gensets
• Growing adoption of LNG as a power source

Floating LNG Power Plant Types:

• Based on Vessel:
  • Power ship
  • Power barge
• Based on Components:
• Power Generation System:
  • • Gas Turbine & IC Engine
  • Steam Turbine & Generator
• Power Distribution System
  • • Transformer
  • Switchboard
• Based on Power Output
  • Small Scale (Up to 72 MW)
  • Medium Scale (72 MW to 400 MW)
  • High Scale (Above 400 MW)

 Some of the Services that are in demand with Floating LNG Power Plants:

• Power Barge Construction
• Substation (step-up up to 132 KV)
• Storage capacity for LNG (for up to seven days )
• For Small Generation, dual fuel engines are used
• For CHP plant use gas turbine combined cycle
• Small Scale LNG carrier solutions to the plants

Some of the Recent Developments:

• March 2021, Thermal Marine Inc. (TMI), part of the Philippine energy company Aboitiz Power, ordered a barge-mounted LNG floating power plant with a capacity of 54 MW/32 MWh energy system be delivered by Wärtsilä on an EPC basis.
• In September 2020, the Turkish Karadeniz Energy Group brought Indonesia’s first-ever LNG floating power plant into operation. The 125 MW Karpowership Zeynep Sultan burns regasified LNG, supplied via a floating storage regas unit (FSRU).
• September 2020, Hyundai Heavy Industries (HHI), the South Korean shipbuilder, has been granted Approval in Principle (AIP) from Bureau Veritas for its ‘all-in-one type’ LNG floating power plant. The power barge is equipped for onboard power generation and transmission, LNG containment, and gas supply.
• June 2020, Turkey’s Karpowership is gearing up to plug South Africa’s gap in electricity supply and help state-owned utility Eskom source up to 3,000 MW of emergency power-gen capacity.
• In September 2019, SeaFloat, Siemens-made power barges equipped with SGT-A65 gas turbines, will be installed at the Upper Bay of Brooklyn in New York City. Two SeaFloats, with a capacity of 300 MW each, will replace existing power barges at Gowanus Generating Station.

The component-based segments of the world's floating LNG power vessel market are power distribution systems and power generation systems. The power generation system segment can bring considerable business for the global floating LNG power vessel market as the demand for gas turbine-powered vessels and integrated IC engines is observed.

The study presents a detailed analysis of various factors that affect Floating LNG Power Plant market revenue. The study also comprehensively analyses the solar inverter market by segmenting it based on geography (Asia-Pacific, North America, Africa, Europe, ROW).

Blackridge Research's Global Floating LNG Power Plant Market report provides insights into the current global and regional market demand scenario and its outlook.

The report also addresses present and future market opportunities, market trends, developments, and the impact of Covid-19 on the Floating LNG power plant market, critical commercial developments, trends, regions, and segments poised for the fastest-growing, competitive landscape.

Further, the report will include the global floating LNG power plant market size (CAGR), demand forecast, growth rates.