World Energy Reports: Gas Supply Fears Drive Interest in FSRUs in Europe
April 28, 2022
Fears of gas supply interruptions due to Russian gas export constraints are driving interest and demand for floating regasification terminals, with contracting activity for oil and gas floaters also being quite active, World Energy Reports said in April 2022 Floating Production Systems Report.
Tensions in East Europe and Covid outbreak in China continue to rattle the energy sector. Oil prices remain above $100, despite efforts to lower prices by releasing crude from strategic reserves, WER said in its report.
Natural gas prices also remain at an elevated level, driven by fears of gas supply interruptions in Europe due to Russian gas export constraints.
High oil and gas prices have been generating record profits for E&P operators, bolstering the appetite for investment in new offshore projects. The floating LNG sector has been especially strong over the past two months.
Anticipated sanctions and other constraints on Russian pipeline gas supply to Europe have driven an increase in interest in floating LNG regasification terminals.
13 FSRUs in Advanced Planning Stage in Europe
As described in the World Energy Reports April report, 13 FSRU terminals are now in the advanced planning stage in Europe. Meanwhile, contracting activity for oil/gas production floaters has been quite active, WER says.
Three FPSO projects moved to the contract stage over the past month – construction of a huge FPSO for use offshore Guyana, an FPSO for use in Indonesia, and conversion of an FPSO to redeploy off Brazil.
Conversion of two FSUs for an LNG export project in BC Canada also got a final notice to proceed. All this is discussed in WER's April floater report.
Also in the data section of the report are details for 195 floater projects in the planning stage, 61 production or storage floaters now on order, 306 floating production units currently in service, and 27 production floaters available for redeployment contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of April 26.
All this and more is discussed in detail in the April IMA/WER report. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of April 26.
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