(MENAFN- Straits Research) Introduction

The global floating storage and regasification unit (FSRU) market is experiencing significant growth due to several key factors. Countries are increasingly turning to FSRUs to enhance energy security and reduce dependence on pipeline gas, particularly in light of geopolitical challenges such as the Russia-Ukraine conflict. FSRUs are also gaining traction because they can be deployed more quickly and require less capital investment than traditional onshore LNG terminals, making them ideal for addressing immediate energy demands.

Additionally, the need for flexible and mobile LNG infrastructure is rising, especially in island nations and developing economies where building permanent terminals is often impractical. The market is further supported by favorable government initiatives and a growing number of public-private collaborations in the LNG industry. Collectively, these aspects are driving the adoption of FSRUs as an efficient, adaptable, and cost-effective solution to broaden global LNG access and maintain energy supply stability in an increasingly uncertain market.

Market Dynamics Growing global LNG trade drives the global market

The growing global trade in liquefied natural gas (LNG) is a key factor driving the international market. Floating Storage Regasification Units (FSRUs) present a flexible and cost-efficient alternative for countries aiming to import LNG without incurring the high costs or extended construction timelines associated with onshore terminals. Their adaptability and mobility make them particularly suitable for emerging markets and nations transitioning their energy portfolios.

As per the International Gas Union (2024), global LNG trade rose to 405 million tonnes in 2023, up from 397 million tonnes in 2022, reflecting a 2.1% annual increase. Additionally, Shell forecasts a nearly 60% surge in global LNG demand by 2040, potentially reaching between 630 and 718 million tonnes per year, driven largely by Asia's growing consumption, industrial expansion, and ongoing energy transition efforts. This upward trend in LNG demand is expected to boost the global deployment of FSRUs.

Hybrid vessel innovations create tremendous opportunities

Hybrid vessel innovations are revolutionizing the Floating Storage Regasification Unit (FSRU) market by combining regasification, storage, and the ability to produce power or hydrogen within a single floating platform. These all-in-one solutions provide enhanced flexibility, quicker deployment timelines, and minimize reliance on land-based infrastructure, making them especially suitable for areas with underdeveloped shore-based energy systems.

• A notable example occurred in April 2025, when Wärtsilä Gas Solutions and Höegh Evi introduced the world's first floating ammonia-to-hydrogen cracker. This modular unit can be integrated into hybrid FSRUs or function as an independent hydrogen terminal, producing up to 210,000 tonnes of hydrogen annually from ammonia cargo. It allows for offshore hydrogen conversion and direct distribution into industrial or power grids, supporting Europe's push toward decarbonization.

These advancements not only support the global transition to cleaner energy but also enhance energy access in remote or infrastructure-limited regions. As energy policies increasingly prioritize multi-fuel versatility, hybrid vessels are expected to transform LNG infrastructure and fuel substantial market growth.

Regional Analysis

The Asia-Pacific region holds significant growth potential in the global market due to rising energy demand, limited pipeline infrastructure, and a growing shift toward cleaner fuels. Countries like India, Bangladesh, and Vietnam are actively deploying FSRUs to meet LNG needs. For example, India's H-Energy has commissioned the Jaigarh FSRU terminal, while Bangladesh operates two FSRUs supplying over 20% of its gas demand.

Additionally, Vietnam approved its first LNG terminal project with FSRU integration in Thi Vai. These units offer a faster, cost-effective solution to support energy security and reduce reliance on coal. Southeast Asian countries are particularly investing in FSRUs due to their archipelagic geography and limited space for onshore terminals. With supportive government policies and increasing LNG imports, the region is expected to remain a key driver of FSRU demand over the next decade.

Key Highlights

• The global floating storage and regasification unit (FSRU) market size was valued at USD 903.34 million in 2024 and is projected to grow from USD 974.25 million in 2025 to reach USD 1783.33 million by 2033, growing at a CAGR of 7.85% during the forecast period (2025–2033).
• The global floating storage and regasification unit (FSRU) market is segmented by type into mooring type and mobility type.
• By storage capacity, the market is categorized into less than 150,000 m3, 150,000–180,000 m3, and above 180,000 m3.
• Based on construction type, the market is divided into new build and converted (from LNG carriers).
• By application, the market is segmented into industrial, power generation, commercial/utility supply, marine fueling (bunkering), and others.
• By end user, the market includes the oil & gas industry, marine, transportation, and other end users.
• Asia-Pacific is the highest shareholder in the global market.

Competitive Players

Höegh LNG

Excelerate Energy

Golar LNG

BW LNG

Samsung Heavy Industries

Daewoo Shipbuilding & Marine Engineering (DSME)

Mitsui O.S.K. Lines (MOL)

Hyundai Heavy Industries

Maran Gas Maritime

Kawasaki Heavy Industries

Recent Developments

• In June 2025, Poland's Gaz‐System secured a PLN 2.2 billion (€515–593 million) loan in June 2025 to build a 250 km onshore pipeline connecting the planned 6.1 bcm/year FSRU terminal in the Bay of Gdańsk. A contractor consortium was also selected in April 2025 for the jetty and offshore pipeline, with commissioning expected in Q1 2028.

Segmentation

By Type

Mooring Type

Mobility Type

By Storage Capacity

Less than 150,000 m3

150,000–180,000 m3

Above 180,000 m3

By Construction Type

New Build

Converted (from LNG carriers)

By Application

Industrial

Power Generation

Commercial/Utility Supply

Marine Fueling (Bunkering)

Others

By End User

Oil & Gas Industry

Marine

Transportation

Others End Users

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