Global FLNG Capacity to Triple by 2030

New research from energy consultancy Rystad has revealed that FLNG capacity is set to more than triple by 2030, as FLNG utilisation rates become comparable to onshore terminals. 

LNG demand is currently rising across the globe; coupled with the growing viability of smaller fields, FLNG is becoming the faster, more flexible and cost-effective production solution. 

With this surge in demand for LNG, Rystad predicts that global FLNG capacity will reach 42 million tonnes per annum (Mtpa) by 2030. From there, the energy consultancy predicts capacity climbing to 55 Mtpa by 2035 - nearly four times the 14.1 Mtpa recorded in 2024. 

Where FLNG terminals were once hindered by operational and technical difficulties, these appear to have been resolved. As Rystad points out, FLNG terminals are now achieving utilisation rates of 76% (to-date in 2025), which makes them comparable to onshore LNG facilities. 

Commenting on this development, Kaushal Ramesh, Vice President, Gas & LNG Research, Rystad Energy, said: 

“FLNG has come a long way in less than a decade. 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”.

That FLNG technology got off to a rocky start is perhaps no surprise, given that there were no prior blueprints for this tech. 

One of the first FLNG projects - Shell’s Prelude - built in South Korea by the Technip-Samsung consortium, saw significant cost overruns. Costs ballooned to $2,114 per tonne for liquefaction alone. 

Since then, however, the industry has got to grips with the nuances and details of FLNG terminal design, fabrication and operation. Proposed FLNG developments along the US Gulf Coast are expected to have average liquefaction costs of around $1,054 per tonne; a far more attractive proposition than that offered by Prelude. 

In a move that signals a further potential drop in costs, FLNG developers are increasingly turning to vessel conversions as a cost-effective alternative to newbuild facilities. Examples of this approach include: 

• Tortue/Ahmeyim FLNG: $640 per tonne. 
• Cameroon FLNG: $500 per tonne.
• South Energy’s FLNG MK II: $630 per tonne.

These projects involved converting Moss-type LNG carriers. Such conversions benefit from the vessels’ modular spherical tank design. This allows for the simpler integration of prefabricated liquefaction modules.

Rystad has suggested that the current energy environment - where speed to first production is critical - is a key driver in the growth of FLNG capacity. Rystad characterised the scenario as follows: 

‘Extended construction timelines delay revenue generation and expose projects to a higher risk of cost overruns. Rystad Energy data also shows that FLNG units can be delivered significantly faster than onshore liquefaction facilities, enabling quicker final investment decisions and more agile execution. 

On average, newbuild FLNG projects are completed in approximately three years, compared to about 4.5 years (capacity-weighted) for operational onshore plants. For FLNG vessels currently under construction, the average projected build time is even lower, at 2.85 years. This accelerating timeline is a key factor in the growing preference for FLNG, as developers seek to minimise exposure and accelerate returns’. 

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