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FLNG regasification to meet rising demand

LNG Industry,

According to the latest research from the US Energy Information Administration (EIA), floating LNG (FLNG) regasification is being used to meet rising natural gas demand in smaller markets.

Floating regasification is a flexible, cost-effective way to receive and process shipments of LNG. It is increasingly being used to meet natural gas demand in smaller markets, or as a temporary solution until onshore regasification facilities are built.

Floating vs onshore

Of four countries planning to begin importing LNG in 2015, three (Pakistan, Jordan, and Egypt) have chosen to do so using floating regasification rather than building full-scale onshore regasification facilities.

The use of floating regasification has grown rapidly in recent years, particularly in emerging markets facing short-term supply shortages. The process was first deployed in the US Gulf of Mexico in 2005 and has since been used in nine other countries: Argentina, Brazil, China, Indonesia, Israel, Italy, Kuwait, Lithuania, and the United Arab Emirates (UAE). Floating regasification capacity totalled 7.8 billion ft3/d at the end of 2014, representing 8% of the global installed regasification capacity, according to data from the International Gas Union. The three floating terminals that are scheduled to come online in 2015 will add 1.4 billion ft3/d of new capacity.


Pakistan received its first LNG import cargo in March 2015 after completing the development of receiving infrastructure for an offshore regasification terminal (0.3 billion ft3/d capacity) located near Port Qasim, Karachi, which will be served by an FSRU.


Egypt has formerly supplied natural gas to international buyers by pipeline and through two LNG export terminals. Faced with domestic supply shortages, the country suspended exports and scheduled all natural gas production for domestic consumption. Egypt began building infrastructure for an offshore regasification terminal in 2012, and recently contracted an FSRU. The terminal (0.5 billion ft3/d capacity) received its first LNG cargo in April 2015.


Jordan lacks domestic energy reserves and has struggled to meet rapidly growing domestic natural gas demand. Floating regasification became the only short-term option for natural gas supply, and Jordan has made significant progress in building regasification infrastructure since 2013. Jordan has secured an FSRU vessel that will be located offshore Aqaba, in the Red Sea, and the regasification terminal (0.5 billion ft3/d capacity) is scheduled to come online in May 2015.


Uruguay is building infrastructure for an offshore regasification terminal (0.4 billion ft3/d capacity) located near Montevideo to supply its domestic market and to potentially provide natural gas for export by pipeline to Argentina. The terminal has been delayed until 2016.

Four more floating regasification terminals totalling 1.3 billion ft3/d are currently being developed in India, the Dominican Republic, Colombia, and the Philippines.

Source: US Energy Information Administration.

Edited by Katie Woodward

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