What's the key takeaway of this year's report?
What's inside this report?
Get answers to all your questions about FLNG including:
- What do I need to know about FLNG?
- How does FLNG stack up against LNG?
- What's the FLNG industry doing to overcome challenges such as the reduction in exploration expenditure and the poor economies of scale?
The lack of economy of scale is likely to limit FLNG projects to small-scale and remote developments as it competes for buyers, financing and partners in a busy LNG marketplace.
Liam Kelleher, global LNG research analyst, quoted by oilprice.com
Sample data point
What do I need to know about capital expenditure of FLNG projects? And how does this compare to LNG?
In this report, we present the CAPEX of all LNG and FLNG projects worldwide, illustrated in the graph above by year of which they took Final Investment Decision (FID). Since the year 2000 to date, the average cost of LNG projects sanctioned has been $1000/tonne. However from 2009 to date, the cost of LNG projects rose to an average $1,400 per tonne. The sustained high oil price between 2008 and 2014 – which peaked at $147/bbl (Brent) – caused a major escalation in project costs of both oil and gas projects. A number of high cost Australian projects were also sanctioned, with an average cost of $2,400/tonne.