With forecast total expenditure of nearly US $65 billion between now and the year 2020, the global Floating Liquefied Natural Gas (FLNG) market is set for significant expansion, according to the latest industry forecast.

According to UK-based analyst Douglas-Westwood, two thirds of the $64.4 billion spend figure is attributed to liquefaction infrastructure, while the remainder is from import and regasification facilities.

The prior seven-year period saw minimal investment in floating liquefaction infrastructure, says the analyst, but with the introduction and acceptance by the upstream industry of FLNG vessels as a viable development concept for large and remote offshore gas fields, global FLNG capital expenditure is expected to experience significant increase over the next seven years.

Year-on-year growth over the period is forecast to average 64% per annum, and Douglas-Westwood expects this rise to be more pronounced after the successful startup and operation of the first wave of FLNG vessels, namely Shell’s Prelude FLNG and Petronas’ PFLNG 1 units.

The analyst is predicting more floating regasification units to be sanctioned, with Asia and Latin America the dominant regions. In North America, however, the discovery of large supplies of shale gas and resultant production boom has resulted in the shut-down of many of its operational terminals and the cancellation of upcoming import facilities. This is set to reverse North America’s traditional status as a net gas importer to that of an exporter.

Offshore