Floating Liquefied Natural Gas (FLNG) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Technology (LNG FPSO, FSRU, Others) By End User (Small/Mid-Scale, Large Scale, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 25.27 Billion
CAGR (2026-2031)	9.19%
Fastest Growing Segment	LNG FPSO
Largest Market	North America
Market Size (2031)	USD 42.83 Billion

Market Overview

The Global Floating Liquefied Natural Gas (FLNG) Market will grow from USD 25.27 Billion in 2025 to USD 42.83 Billion by 2031 at a 9.19% CAGR. Floating Liquefied Natural Gas constitutes a mobile offshore facility designed for the extraction, liquefaction, storage, and direct transfer of natural gas from subsea fields to transport vessels. The primary drivers supporting the growth of this market involve the capability to monetize stranded or remote offshore gas reserves that are otherwise economically unviable to access via traditional long-distance subsea pipelines. Furthermore, these facilities offer a reduced environmental footprint and greater deployment flexibility compared to permanent land-based terminals, allowing operators to relocate assets to new fields once existing reservoirs are depleted.

According to the International Gas Union, in 2025, the total operational floating liquefied natural gas capacity stood at 14.35 million tonnes per annum. Despite this operational progress, the market faces a significant challenge in the form of high initial capital expenditure requirements and technical complexities which can strain project economics and delay final investment decisions for new developments.

Key Market Drivers

The commercialization of stranded and remote offshore gas reserves stands as a primary driver, enabling the monetization of assets that are otherwise economically unviable via traditional subsea pipelines. FLNG technology allows for the in-situ liquefaction of natural gas, thereby bypassing the need for extensive onshore infrastructure and reducing the capital intensity required to access isolated deepwater basins. This capability to unlock value from marginal fields has catalyzed the delivery of new mobile infrastructure. According to Eni, November 2024, in the 'Eni launches the hull of Nguya FLNG' press release, the company announced the hull launch of a new floating facility with a liquefaction capacity of 2.4 million tonnes per annum to valorize resources offshore the Republic of Congo.

Escalating global demand for liquefied natural gas as a transition fuel further propels the market, as nations seek reliable energy sources to complement intermittent renewables and accelerate coal-to-gas switching. This consumption surge, particularly in Asia, necessitates rapid infrastructure deployment which floating solutions provide more effectively than permanent land-based terminals. According to Shell, February 2024, in the 'LNG Outlook 2024', global demand for liquefied natural gas is estimated to rise by more than 50 percent by 2040. To meet this trajectory, operators are actively sanctioning new capacity. According to Golar LNG, in 2024, the company made a Final Investment Decision for a Mark II floating liquefaction vessel with a capacity of 3.5 million tonnes per annum, reflecting strong market confidence.

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Key Market Challenges

High initial capital expenditure and technical complexities constitute a primary impediment to the expansion of the Global Floating Liquefied Natural Gas (FLNG) Market. Unlike conventional onshore facilities, FLNG units require the integration of hazardous gas processing and liquefaction modules onto a marine vessel restricted by space and weight. This engineering density significantly escalates upfront costs and introduces operational risks related to harsh offshore environments. These factors create a high barrier to entry, forcing operators to conduct prolonged feasibility studies and front-end engineering designs. Consequently, the financial burden often renders potential projects economically marginal, causing investors to hesitate or withdraw support for new developments.

The direct impact of these economic and technical pressures is evident in the substantial slowdown of project sanctions within the broader industry. According to the International Gas Union, in 2024, only 14.8 million tonnes per annum of new liquefaction capacity reached a Final Investment Decision (FID). This figure represents a marked decline in approved projects compared to previous years, illustrating how the capital-intensive nature of liquefaction infrastructure is delaying the finalization of new assets. Such delays in investment decisions directly constrain the FLNG market's growth trajectory, preventing the timely monetization of offshore reserves.

Key Market Trends

Operators are increasingly prioritizing small to mid-scale floating liquefaction units over large-capacity vessels to mitigate financial risks and accelerate deployment timelines. This shift favors standardized, modular designs that reduce construction cycles and allow for near-shore deployment, offering a cost-effective alternative to complex deepwater projects. By limiting facility size, stakeholders can secure contracts and reach operational status more rapidly than with bespoke mega-structures. According to Wison New Energies, June 2024, in the 'Wison New Energies to Construct 1.2 MTPA FLNG' press release, the company secured an EPCIC contract for a floating facility with a capacity of 1.2 million tonnes per annum to be deployed in Indonesia, illustrating the industry preference for compact solutions.

The integration of electrification and carbon reduction technologies constitutes a parallel trend as the industry faces stricter regulatory pressure to minimize greenhouse gas emissions. Developers are actively redesigning vessel power systems to utilize shore-based grid connections or electric drive compressors, replacing traditional gas turbines to lower the carbon intensity of production. This technological evolution ensures that new assets remain compliant with global decarbonization mandates while maintaining operational efficiency. According to Cedar LNG, June 2024, in the 'Cedar LNG Makes History with Final Investment Decision' press release, the sanctioned floating facility will be powered entirely by renewable electricity from BC Hydro, making it one of the lowest carbon intensity LNG facilities globally.

Segmental Insights

The LNG FPSO segment currently represents the fastest-growing category within the Global Floating Liquefied Natural Gas Market due to its increasing capacity to monetize stranded offshore reserves. These vessels allow operators to extract, process, and store natural gas directly at remote field locations, effectively eliminating the requirement for capital-intensive subsea pipelines and onshore liquefaction plants. This operational independence significantly reduces project development timelines and upfront infrastructure costs. Consequently, energy companies are prioritizing LNG FPSO units to secure flexible and efficient production capabilities in response to rising global energy demand.

Regional Insights

North America currently holds the leading position in the Global Floating Liquefied Natural Gas (FLNG) market, driven by the strategic development of offshore export terminals to efficiently monetize abundant shale gas reserves. This market dominance is anchored by the progression of major infrastructure initiatives, such as the Cedar LNG and Delfin LNG projects, which provide flexible alternatives to land-based facilities. The U.S. Maritime Administration (MARAD) has been instrumental in this expansion by granting necessary deepwater port licenses, thereby facilitating rapid project deployment. Consequently, the region is successfully prioritizing modular liquefaction solutions to accelerate speed-to-market for global energy exports.

Recent Developments

• In June 2024, Golar LNG signed a Project Development Agreement with the Nigerian National Petroleum Company Limited for a potential Floating Liquefied Natural Gas (FLNG) project located offshore the Niger Delta. The agreement established a framework to monetize proven gas reserves from shallow water resources, aiming for a production output of liquefied natural gas, liquefied petroleum gas, and condensate. The partners set a target to reach a Final Investment Decision by the end of the year, with operations projected to begin in 2027. This collaboration reflects the continued industry focus on utilizing floating infrastructure to unlock stranded gas assets in West Africa.
• In June 2024, Wison New Energies was awarded a major engineering, procurement, construction, installation, and commissioning contract by the Genting Group for a new Floating Liquefied Natural Gas (FLNG) facility. The contract, valued at nearly $1 billion, involves building a unit with an annual capacity of 1.2 million tonnes to be deployed in West Papua, Indonesia. The facility is scheduled to be constructed at shipyards in China before being transported to its operating site. This project represents a significant expansion of FLNG activities in Southeast Asia and underscores the growing adoption of floating liquefaction technology for regional gas development.
• In February 2024, Eni celebrated the commencement of liquefied natural gas production and the loading of the first cargo from its Congo LNG project. The milestone was achieved through the Tango Floating Liquefied Natural Gas (FLNG) facility, which had been moored in Congolese waters earlier. This development officially marked the Republic of the Congo's entry into the group of LNG-exporting countries. The project, characterized by a fast-track execution schedule, began operations just one year after the final investment decision. The company highlighted that this achievement would contribute significantly to the country’s economic growth and energy monetization strategy.
• In January 2024, Samsung Heavy Industries announced that it had secured a conditional engineering, procurement, and construction contract valued at approximately $1.5 billion for a Floating Liquefied Natural Gas (FLNG) facility. The South Korean shipbuilder formed a consortium with the engineering company Black & Veatch to deliver the project for a North American client. Under this agreement, the company was tasked with the design and construction of the hull and topside plant processes. This deal further solidified the company’s leadership in the high-value FLNG market, increasing its order backlog and demonstrating the growing global demand for offshore gas liquefaction solutions.

Key Market Players

• Hoegh LNG Group
• Mitsui O.S.K. Lines, Ltd.
• BASF SE
• Golar LNG Limited
• Eni S.p.A.
• EXMAR GmbH
• Woodside Energy Group Ltd
• Shell plc
• Excelerate Energy, Inc.
• Petroliam Nasional Berhad

By Technology	By End User	By Region
LNG FPSO FSRU Others	Small/Mid-Scale Large Scale Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Floating Liquefied Natural Gas (FLNG) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Floating Liquefied Natural Gas (FLNG) Market, By Technology:

• LNG FPSO
• FSRU
• Others

• Floating Liquefied Natural Gas (FLNG) Market, By End User:

• Small/Mid-Scale
• Large Scale
• Others

• Floating Liquefied Natural Gas (FLNG) Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE