FLNG Terminals Market to Soar to $68.9Bn by 2034: What's Fueling the Growth?

As the global push for decarbonization intensifies, the energy industry is rapidly shifting toward cleaner, more efficient fuel sources. Among these, natural gas has emerged as a key transitional fuel — and the Floating Liquefied Natural Gas (FLNG) terminals market is poised to play a central role. Valued at US$ 21.3 billion in 2023, the market is forecast to grow at a CAGR of 11.3%, reaching US$ 68.9 billion by 2034.

This exponential growth is not coincidental. It is driven by three converging trends: increasing efforts to reduce global carbon emissions, growing demand for cleaner fuels in transportation, and rising interest in stranded offshore gas reserves.

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Why FLNG Matters in the Energy Transition

Unlike traditional onshore liquefied natural gas infrastructure, FLNG terminals are self-contained offshore platforms that perform the full spectrum of gas processing activities — from extraction and liquefaction to storage and offloading. These floating units eliminate the need for long-distance pipelines and heavy coastal development, enabling access to previously unreachable gas fields.

More importantly, natural gas emits up to 30% less CO₂ than oil and 45% less than coal when used for power generation. For transportation and industrial sectors, switching to LNG significantly cuts down NOx, SOx, and particulate matter emissions — offering both environmental and economic benefits.

Carbon Reduction Drives Market Expansion

The growing climate consciousness among governments and corporations has intensified investments in clean energy infrastructure. This is reflected in rising FLNG deployments, as floating terminals help meet natural gas demand without the environmental impact of building massive land-based facilities.

A notable feature of recent FLNG projects is their focus on flexible, modular design. These units are optimized for faster deployment, cost-effectiveness, and enhanced safety, significantly reducing project risk for investors and governments alike.

Unlocking Stranded Offshore Reserves

One of the strongest drivers of FLNG growth is the ability to monetize stranded gas reserves. These are offshore gas fields that were once considered commercially unviable due to their remote locations. FLNG vessels can now access, liquefy, and export gas directly from the source, creating new revenue streams for energy producers.

With global demand for natural gas projected to increase significantly through the next decade, especially in developing economies, FLNG terminals offer a strategic advantage by bringing supply closer to demand — without requiring land-based infrastructure.

Natural Gas in Transportation: A Rising Trend

The transportation sector, a major contributor to greenhouse gas emissions, is increasingly adopting natural gas as a clean fuel alternative. LNG-powered vehicles release significantly fewer emissions than their gasoline or diesel counterparts. From buses to heavy-duty trucks and ships, LNG is becoming the fuel of choice in regions looking to balance performance with environmental compliance.

Between 2002 and 2007, New Delhi witnessed a 16% reduction in particulate matter, thanks to the growing use of natural gas. Similar trends are now being seen in cities across Asia and Europe. Automakers are also responding, launching hybrid vehicles that run on natural gas, and pushing infrastructure development — particularly CNG and LNG refueling stations.

This shift is pushing governments and private sector players to increase investments in FLNG terminals, which can ensure a reliable, scalable LNG supply chain.

Asia Pacific: The Global Growth Engine

In 2023, Asia Pacific led the global FLNG terminals market, driven by strong government initiatives and rising LNG demand. According to the Investment Information and Credit Rating Agency (ICRA), alternative fuel vehicles — including CNG, EVs, and hybrids — are projected to make up 30% of total auto sales in the region over the next five years.

India, in particular, is pushing ahead with an ambitious plan to increase the number of CNG refueling stations from 6,000 to 17,700 by 2030. Countries like China and Japan are also investing heavily in FLNG infrastructure to enhance energy security and diversify their energy mix.

Key Players and Recent Developments

Leading industry players — including Mitsui O.S.K. Lines, Shell, PETRONAS, Excelerate Energy, and Golar LNG — are expanding their FLNG fleets and technologies. They are also investing in marinization programs to adapt liquefaction equipment for extreme offshore conditions.

In May 2024, Mitsui O.S.K. Lines signed a long-term charter contract with JERA Co., Inc., underscoring the importance of stable LNG supply chains. Similarly, Höegh LNG deployed a Floating Storage and Regasification Unit (FSRU) in Egypt to support national energy security in collaboration with EGAS and Australian Industrial Energy.

Conclusion: A Market Poised for Transformation

The FLNG terminals market is no longer just a niche solution for remote gas fields — it's becoming a central pillar in the global energy transition. With increasing pressure to decarbonize, the demand for cleaner fuels like LNG will only continue to rise. Add in the agility and scalability of FLNG platforms, and it’s easy to see why this market is expected to more than triple in value by 2034.

For investors, governments, and energy companies alike, FLNG offers a strategic, forward-looking path to meeting both energy demand and climate commitments in a rapidly evolving global landscape.