Growth of FRSUs
The share of FRSUs (floating storage regasification units) as a percentage of total regasification has continue to grow over the recent years. This is because FRSUs require less capital compared to onshore regasification units and “can be brought online much faster than traditional onshore terminals,” as the company noted in its 2Q16 conference call.
Cheniere Energy (LNG) expects FSRUs to boost demand from new markets, which might not be able to afford onshore regasification units.
According to Cheniere Energy, “The rise in FSRU projects is staggering, as new importers are able to start importing LNG in less than 12 months. The first FSRU was delivered in 2005. Now, there are 24 vessels, representing about 90 million tons of import capacity.
“Currently, there are another six vessels on order, representing an additional 30 million tons of import capacity. With more than 30 new markets spread across the world considering LNG imports, gas is becoming a more attractive fuel source.”