Floating LNG (FLNG) is close to first production. Five projects are currently under construction, varying greatly in capacity and scope. The innovative nature of the technology implies substantial technical, commercial and cost risks, which we outline in detail. Two distinct concepts are emerging: small-scale, barge and vessel conversions for near-shore locations and large, new-build vessels for long life, open-sea solutions. Our detailed economic benchmarking suggests small-scale projects have much lower breakevens costs compared to large new-builds. These smaller FLNG barges and vessel conversions offer compelling low-cost solutions of which we expect to see two or three projects sanctioned in the short term. Despite the potential game-changing technology, we forecast FLNG to comprise just 2% of total LNG demand by 2020.