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Gas reserves are not only found on land, but also in abundance in the open sea. In this context, building onshore LNG terminals is often inefficient. This is where Floating Liquefied Natural Gas (FLNG) offers a solution.

This technology introduces a new way of processing LNG by purifying, liquefying, storing, and even loading it directly at sea.

Compared to onshore terminals, FLNG offers several key benefits, particularly in terms of cost, flexibility, and environmental impact.

What Is Floating LNG (FLNG)?

Floating Liquefied Natural Gas (FLNG) is a giant ship that operates directly on the high seas.

It enables countries and companies to tap into offshore gas reserves without the need to build land-based LNG terminals.

Natural gas from subsea reservoirs is transported to the FLNG unit through a network of pipelines. Once on board, the gas goes through several main stages:

• Purification: removing water, carbon dioxide, hydrogen sulfide, and other impurities
• Liquefaction: cooling the gas to around -162°C until it becomes LNG
• Storage: keeping LNG in advanced cryogenic tanks that maintain stable temperatures
• Offloading: transferring LNG to carrier vessels via safe transfer systems for global distribution

With this process, FLNG can process, store, and distribute LNG directly from underwater sources without the need for land terminals.

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5 Advantages of Floating LNG Over Onshore Terminals

FLNG comes with five major advantages that traditional onshore terminals cannot match, making it an attractive choice for future gas development projects.

1. Direct Access to Offshore Gas Reserves

The main advantage of FLNG is its ability to operate precisely in offshore gas reserves, including those in deep and remote waters.

By using FLNG, previously “stranded” gas reserves can now be monetized efficiently, unlocking energy resources that were once out of reach.

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2. Lower Infrastructure Costs

Onshore LNG terminals require massive investment: liquefaction facilities, tanks, ports, and other onshore infrastructure.

In contrast, FLNG reduces the need for complex onshore infrastructure, helping cut capital expenditure (CapEx).

Although FLNG construction remains costly, it is often more economical than building long pipelines to shore plus new onshore terminals, making offshore gas projects more financially viable.

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3. High Mobility and Flexibility

As a floating facility, FLNG offers a level of mobility that land-based terminals cannot. Once gas production from a field is no longer economical, the FLNG unit can be relocated to another site, allowing the asset to remain useful over the long term.

While relocation remains complex and expensive, this flexibility makes FLNG more adaptable to changes in the global energy market than permanent onshore terminals. In comparison, onshore terminals are fixed and permanent.

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4. Smaller Environmental Footprint

FLNG has a significantly lower environmental impact than onshore terminals. Because it operates at sea, FLNG minimizes the need for land, which often causes social conflict and deforestation on land.

It also minimizes disruption to coastal ecosystems, such as coral reefs, and can be equipped with advanced technologies to reduce emissions and waste.

Read More: Why LNG Plays a Key Role in the Global Energy Transition?

5. Faster Project Implementation

In the energy industry, project speed is critical. Onshore LNG terminals typically take 5–7 years or more to build, whereas FLNG facilities are often completed in 3–5 years.

Although still complex, the integration of all processes into a single floating unit makes FLNG projects potentially faster to bring online.

This advantage enables companies to respond more quickly to market demands, reduce project risks, and accelerate revenue generation.

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Why Is Floating LNG Becoming More Popular?

FLNG’s popularity continues to grow because it can address global energy challenges: from geopolitical crises to the need for a clean energy transition.

The technology enables countries to access offshore gas reserves that were previously difficult to develop while reducing reliance on pipeline-based supply.

It also supports the energy transition by providing a more efficient infrastructure alternative to coal-fired power, helping lower emissions.

Since it can be deployed in different offshore locations with gas reserves, FLNG creates new opportunities for countries that previously lacked LNG access.

FLNG is not just a technical innovation, but a paradigm shift in the gas industry. With its numerous advantages, FLNG is now a key pillar of the global LNG supply chain.

References:

• U.S. Department of Energy. Accessed 2025. Offshore LNG Technologies & Facilities
• ESDM. Accessed 2025. Ke Tiongkok, Menteri Bahlil Tinjau Fasilitas Terapung LNG Terbesar untuk RI
• Rystad Energy. Accessed 2025. Global FLNG capacity to more than triple by 2030

The Floating Storage and Regasification Unit (FSRU) has become a key innovation in the liquefied natural gas (LNG) industry. This technology allows LNG to be transported, stored, and then converted back into gas in the middle of the ocean. With these advantages, FSRUs promise faster and more flexible energy access.

However, does the presence of FSRUs really lead to lower LNG prices? Let’s discuss this.

What Is an FSRU?

An FSRU (Floating Storage and Regasification Unit) is a floating LNG terminal designed to:

• Receive LNG cargo from carrier vessels
• Store LNG in cryogenic tanks
• Regasify LNG and deliver natural gas into onshore pipelines

The primary advantage of an FSRU is efficiency. Compared to onshore LNG terminals, which require extensive land and lengthy construction times, FSRUs can be installed more quickly, flexibly, and cost-effectively.

These units can be converted into LNG carriers or new, purpose-built vessels.

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How Does an FSRU Work?

FSRU operations begin when LNG is transferred from carrier vessels into the unit’s cryogenic tanks using loading arms or specialized flexible hoses. LNG is stored in liquid form at around -162°C.

When gas is needed, LNG is pumped into the regasification system on board, where vaporizers heat it back into gaseous form.

The gas is then offloaded through the FSRU system and connected to onshore pipelines for use in power generation, industry, or households.

This process makes FSRU a practical solution that connects the global LNG market with domestic needs.

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Do FSRUs Make LNG Cheaper?

FSRUs do not change the price of LNG on the global market. LNG prices are determined by trade contracts and international market dynamics. However, FSRUs offer significant infrastructure benefits:

• Faster construction: operational in less than 2 years, compared to 4–5 years for onshore terminals
• Lower investment cost: typically 30–50% cheaper than land-based terminals
• Greater flexibility: countries can access LNG more quickly without waiting for large onshore facilities

So, while FSRUs don’t lower LNG’s global market price, they reduce infrastructure costs and speed up access, making LNG a more affordable energy option compared to other imports like crude oil.

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What Drives LNG Prices?

LNG prices are shaped by global dynamics, not by a single facility like an FSRU. The main factors include:

• Crude oil prices: Many long-term LNG contracts remain indexed to oil
• Geopolitics: Conflicts, sanctions, or instability in producing and transit countries affect supply expectations
• Global supply and demand: Winter demand surges in Asia and Europe, typically pushing prices up, while oversupply drives them down
• Logistics and infrastructure capacity: limited LNG carriers or receiving terminals can create bottlenecks, adding transport costs and influencing prices

In other words, LNG prices are the result of an interaction of global factors, not determined by a single facility like an FSRU.

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Why Are FSRUs Important?

FSRUs play a vital role in today’s energy landscape, particularly in energy transition efforts and strengthening gas supply security.

Faster and More Flexible LNG Access

For countries seeking to move away from heavy reliance on oil or diversify their energy mix, FSRUs are a strategic solution. With much shorter construction times than land terminals, they enable rapid entry into the global LNG market.

Their mobility adds another advantage, FSRUs can be relocated when needed (as long as basic infrastructure like a jetty and pipelines is available). This makes them ideal for temporary projects, land-constrained locations, or remote regions.

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A Bridge for Energy Transition

In many Asian countries, coal still dominates power generation, despite its high carbon and air pollution impact. FSRUs help these countries switch to natural gas, which emits about 50% less CO₂ than coal.

While FSRUs don’t lower global LNG prices, they significantly cut costs and time needed to access LNG, making it more competitive than other fuels in local markets.

With this strategic role, FSRU becomes an important element in supporting the energy transition towards cleaner, more affordable and sustainable energy sources.

References:

• U.S. EIA. Accessed 2025. Floating LNG regasification is used to meet rising natural gas demand in smaller markets
• IEEFA. Accessed 2025. Floating LNG Import Terminals Pose Cost and Climate Challenges for Asian Markets
• Greenpeace. Accessed 2025. Gas Power Plants Are Not the Solution to Energy Transition

Energy distribution in some regions still relies on pipelines. But what happens when pipelines aren’t an option? The solution is LNG carriers.

These specialized vessels enable diversification in the energy supply chain, playing a crucial role in maintaining energy availability and security.

So, is it true that without LNG carriers, the global energy supply could stop? Let’s find out.

What Is an LNG Carrier?

An LNG carrier is a specialized ship designed to transport Liquefied Natural Gas (LNG) in liquid form.

These ships are built with double hulls to enhance safety and reduce the risk of leaks if the outer hull is damaged.

LNG itself is natural gas that has been cooled to around -162° Celsius to convert it into liquid form. For storage, LNG is kept in highly insulated cryogenic tanks designed to maintain stable temperatures throughout the voyage.

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How Does an LNG Carrier Work?

LNG carriers play a critical role in delivering LNG to locations that lack pipeline infrastructure. The shipping process involves several stages:

Loading LNG at the Liquefaction Terminal

The journey begins at a liquefaction terminal, where natural gas is cooled to about -162°C to convert it into liquid form.

The LNG is then pumped into the carrier’s tanks through a cryogenic piping system, ensuring it can be transported efficiently in large quantities over long distances.

Onboard Storage System

To keep LNG in liquid form during transport, the vessel is equipped with highly insulated cryogenic tanks. Two main designs are used:

• Moss spherical tanks (sphere-shaped)
• Membrane tanks (featuring special membrane layers)

These tanks maintain stable temperatures and minimize evaporation.

However, some natural evaporation, known as boil-off gas (BOG), still occurs. Instead of being wasted, this gas is either used as fuel for the ship or reliquefied using special equipment.

Alongside the tanks and insulation system, LNG carriers feature double-hull construction for extra safety in case of outer hull damage.

Unloading LNG at the Regasification Terminal

Once the ship reaches its destination, LNG is offloaded using pumps and transferred to onshore storage facilities. After that, it is reheated and converted back into gas through regasification.

Finally, the natural gas is fed into the pipeline network for use by power plants, industries, and end consumers.

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The Vital Role of LNG Carriers in Global Energy Supply

Not every location has pipeline access. That’s why LNG carriers are essential in connecting production sites to consumers. Here’s why they’re so important:

Connecting Production to Consumption

Most natural gas reserves are located far from major consumer markets.

LNG carriers make it possible to transport gas across thousands of kilometers of ocean to countries that need it, including regions that are inaccessible by pipelines due to geographical, political, or economic barriers.

Ensuring Energy Supply Security

LNG also strengthens energy security. A clear example is Europe, which once relied heavily on pipeline gas from Russia.

With LNG infrastructure, Europe can now import gas from other countries, reducing dependency on a single supplier.

Diversifying supply through LNG helps nations maintain stable energy flows, support economic growth, and enhance overall energy resilience.

Read More: Why Is LNG Critical in the Global Energy Transition? Here’s the Truth

What Happens If LNG Carriers Stop Operating?

If the global LNG carrier fleet were to stop operating, the consequences for the energy market would be severe: the world’s energy supply could grind to a halt.

As the main link in the LNG supply chain, halting transportation would cut off gas flows to countries heavily reliant on LNG imports.

Such disruptions would lead to severe supply shortages, especially in nations that depend on LNG. This could result in energy rationing, production shutdowns, and even widespread power outages.

On top of that, the global gas market would experience a massive price surge. Countries that import large volumes of LNG would scramble to secure alternative supplies.

If LNG deliveries are disrupted, nations that shifted to LNG may revert to coal or petroleum to meet their energy needs.

This would undermine global efforts to cut emissions and combat climate change.

References:

• Energy Education. Accessed 2025. LNG Carrier
• US Department of Energy. Accessed 2025. Liquefied Natural Gas
• ESDM. Accessed 2025. Supergrid, Solusi Ketidakseimbangan Supply dan Demand Listrik EBT