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The Floating Storage and Regasification Unit (FSRU) market is poised for significant growth during the forecast period, driven by a combination of factors. The increasing demand for natural gas, particularly from European countries, is a key driver as nations seek cleaner and more sustainable energy solutions. This trend is further supported by the EU’s plan to reduce its dependence on Russian fossil fuels.

FSRUs are also gaining traction due to their flexibility and reliability in providing LNG supply, making them ideal for meeting diverse energy needs. Their cost competitiveness, coupled with advancements in offshore gas production, enhances their appeal as an efficient and economical solution. 

Additionally, the deployment of FSRUs in remote locations is becoming increasingly common, as they offer logistical and operational advantages in areas where traditional infrastructure may be challenging to develop. 

Introduction

An FSRU is a special type of LNG tanker used to transfer LNG from one place to another through sea routes. An FSRU acts as an interface between LNG Carriers and the local gas supply infrastructure, thus playing a vital role in the LNG industry.

They are regarded as the fastest means to capitalize on low gas prices and their increased demand in various end-use sectors such as power generation, transportation, and industries.

It is anticipated that FSRUs will continue to be a popular option for storage and regasification during the forecast period. The conflict between Russia and Ukraine has further aroused interest in FSRUs across Europe. 

Shipowners have reported receiving a significant number of inquiries regarding the prospect of deployment in order to alleviate the supply crunch and reduce dependence on Russian gas.

The global FSRU market consists of establishments involved in operating the floating storage regasification unit either through long-term contracts or through spot chartering.

 

Advantages of FSRUs

FSRUs play an important role in equipping new countries to quickly ramp up their regasification facilities because the time taken to construct an FSRU is just about half of that of an onshore terminal and offers flexibility with almost a "plug-and-play" kind of operation. Some of the benefits are listed below:

• Allow quick fuel switching

• Complement domestic production

• Require lower capital expenditures

• Flexible

• Faster

• Reaches remote areas easily

• Avoid delays due to land acquisition

Furthermore, an FSRU has the flexibility to serve multiple purposes, such as storage, regasification, and power generation, all at the same time or sometimes separately.

Current Global FSRU Scenario

By the end of 2024, a total of 48 Floating Storage and Regasification Units (FSRUs) were in operation worldwide, forming a crucial part of the global LNG infrastructure. These vessels continue to play a key role in providing flexible and rapid deployment options for LNG imports, especially in markets with limited onshore infrastructure.

The current orderbook for FSRUs remains limited, with only three newbuilds under construction. One of these is scheduled for delivery in 2026 and will serve Excelerate Energy. Another unit, managed by Mitsui O.S.K. Lines (MOL), is expected to be completed in 2027 for Poland’s Gdańsk LNG project. The third is also being developed for MOL and is slated for delivery in 2028 to support LNG operations in Singapore.

Two of these FSRUs are being built by HD Hyundai Heavy Industries Group, while the third is under construction at Hanwha Ocean. However, the availability of shipyard slots for additional FSRU newbuilds remains constrained. This is primarily because major shipbuilders are currently prioritizing the production of standard LNG carriers, which are in high demand due to the upcoming wave of liquefaction capacity additions anticipated between 2026 and 2028.

FSRU Market Outlook

The FSRU market growth rate is directly dependent on LNG market growth. In 2024, global LNG trade increased by 2.4%, reaching 411.24 million tons (MT). This growth connected 22 exporting countries with 48 importing markets, underscoring the widening reach of LNG as a key energy source.

Although spot market demand remained subdued in the latter part of the year, overall LNG trade continued to rise. This was primarily driven by the addition of new liquefaction capacity and a surge in exports from major producers such as the United States, Russia, Indonesia, and Australia.

Reflecting this rising demand, global floating and offshore regasification capacity reached 207.3 MTPA across 52 operational terminals by the end of 2024, accounting for roughly 20% of the world’s total LNG regasification capacity. During the year, eight new floating-based terminals were commissioned, collectively adding 34.4 MTPA of capacity.

Europe led the additions with four new projects totaling 17.6 MTPA, followed by Latin America with three projects (13.8 MTPA), and one additional project elsewhere. FSRUs continue to offer a vital solution for deploying flexible and fast-track LNG import infrastructure, especially in the context of evolving energy security needs and dynamic market conditions.

Looking ahead, 13 floating and offshore regasification terminals were under construction globally at the close of 2024, representing a total of 41.1 MTPA in future capacity. The Asia and Asia-Pacific region leads this pipeline with 21 MTPA under development, followed by Europe (9.8 MTPA), Latin America (6.1 MTPA), and Africa (4.2 MTPA).

Notably, around 62% of this under-construction capacity is expected to come online in 2025, with major projects underway in Germany, Italy, Estonia, and Cyprus. FSRUs have played an increasingly important role in expanding global LNG access, with 16 of the 47 LNG-importing countries now relying exclusively on floating and offshore regasification terminals, while another 11 utilize a hybrid model that combines both floating and onshore infrastructure.

FSRU Market Dynamics

One of the key drivers of the Floating Storage and Regasification Unit (FSRU) market is its cost competitiveness. Building an FSRU typically costs around USD 300 million, which is nearly half the investment required for a comparable onshore regasification facility. This significant cost advantage makes FSRUs particularly attractive for both emerging economies and established LNG markets aiming to expand their regasification capacity.

Beyond cost, deployment speed is another major benefit. FSRUs can be made operational within a few months—provided the port has the necessary supporting infrastructure—which is approximately six times faster than constructing an onshore terminal of similar capacity. This time efficiency allows countries to respond quickly to shifting energy demands or geopolitical disruptions.

FSRUs also offer exceptional flexibility. As a ‘plug-and-play’ solution, they can be rapidly mobilized to meet demand wherever needed and redeployed elsewhere once demand subsides. This is particularly advantageous in land-scarce or remote regions, where building permanent infrastructure is challenging or impractical. Their mobility and adaptability make FSRUs ideal for markets with fluctuating natural gas requirements, and they are expected to remain a popular option for LNG storage and regasification in the foreseeable future.

However, vessel delivery delays, power outages, and rising costs, negatively impact the demand for FSRUs. Additionally, volatility in LNG shipping charter rates can prompt shipowners to repurpose FSRUs as standard LNG carriers, thereby reducing the number of vessels available for regasification or storage duties.

FSRU Key Market Trends

FSRU suppliers are seeing surging demand from European countries. In response to concerns about energy security, a number of European nations, particularly the Netherlands and Germany, are turning to floating storage regasification units (FSRUs). 

They have been Europe’s primary solution to import additional LNG in the wake of the Russia-Ukraine war and the subsequent decline in Russian pipeline gas supplies.
 

Moreover, there is a significant rise in the number of portfolio players. They are entities (often integrated energy companies or traders) that manage a diverse portfolio of LNG supply sources, contracts, and destinations.
 

LNG is no longer restricted to big markets or big companies. 

Regional Analysis

Asia-Pacific is expected to be the leading region in the FSRU market during the forecast period, followed by Europe, North America, and the rest of the world.

Indonesia, Pakistan, China, Bangladesh, India, and Thailand are the major countries in Asia-Pacific with existing FSRU terminals along with a strong order book, while Italy, Turkey, Croatia, and Russia are a few emerging markets within Europe’s FSRU market.

With a target to reduce emissions, LNG demand will rise in the power generation sector, especially in China and India, along with other countries in Southeast Asia, such as Thailand, the Philippines, Indonesia, and Malaysia.

Competitive Landscape

The global LNG carrier fleet has grown steadily in the last twenty years, with the rapid increase in liquefaction capacity being the key factor. About 90% of the LNG vessels are less than 20 years old, and the order book for these vessels remains strong during the forecast period.

The FSRU market is in a mature but evolving stage, with a limited number of specialized players currently dominating the space. While the market is not highly fragmented, competition among existing operators is strong, especially for key projects in energy-sensitive regions. Going forward, the entry of major oil and gas firms and well-capitalized marine transportation companies could intensify competition, particularly as global LNG demand and energy security concerns continue to rise.

FSRU Market Share

By the end of 2024, a total of 48 FSRUs currently represent approximately 6.5% of the active global LNG fleet. Leading shipowners such as Excelerate Energy, Höegh LNG, Energos Infrastructure (a joint venture between Apollo Funds and New Fortress Energy), Karpowership, and BW operate the largest fleets of active FSRUs.

Market Opportunity

• As countries transition away from coal and oil, LNG serves as a crucial bridge fuel due to its lower emissions. This fundamental shift drives sustained demand for LNG import solutions, of which FSRUs are a flexible and quick option.

• Floating-based solutions are now the go-to choice for nations establishing their first LNG import terminals. Countries like Nicaragua, Senegal, Estonia, Cyprus, and Antigua & Barbuda are currently building such facilities, a clear indication of FSRUs' popularity due to their flexibility and lower fixed costs. This ongoing adoption creates a consistent pipeline of opportunities for FSRU market players.

Recent Developments

• In July 2025, Singapore's Seatrium secured a contract to convert a liquefied natural gas (LNG) carrier into a floating storage regasification unit (FSRU) for Kinetics, an energy transition initiative supported by Karpowership.

• In May 2025, the Egyptian Natural Gas Holding Company (EGAS) signed a 10-year charter agreement with Höegh Evi to deploy the Höegh Gandria as a Floating Storage and Regasification Unit (FSRU). Starting in the fourth quarter (Q4) of 2026, the FSRU will be stationed at Ain Sokhna's Sumed Port and provide a peak liquefied natural gas (LNG) regasification capacity of up to 1,000 million standard cubic feet per day (mmscf/d).

• The European Commission, in December 2024 has approved, under EU State aid rules, an estimated EUR 4.06 billion German measure to support the operation of four storage and regassification units (FSRUs) for the import of Liquefied Natural Gas (LNG) by Deutsche Energy Terminal (DET).

• In December 2024, The state-owned Egyptian Natural Gas Holding Company (EGAS) signed an agreement with the U.S. energy infrastructure player New Fortress Energy (NFE) to lease a floating storage and regasification unit (FSRU).

• Mitsui O.S.K. Lines, Ltd. on 23rd of October announced an agreement with Singapore LNG Corporation Pte. Ltd., Singapore’s state-owned LNG terminal operator, on a long-term time charter contract for one newbuilding FSRU.

• Excelerate Energy, Inc. and PetroVietnam Technical Services Corporation (PTSC) have signed a strategic partnership agreement, in September 2024, to jointly study Floating Storage Regasification Unit (FSRU) based technical solutions for LNG imports into Vietnam.

• In August 2024, Swan Energy Ltd said it plans to sell its stake in a floating LNG receipt terminal to Turkey’s state-run Botas for USD 399 million. The company plans to sell assets of subsidiary Triumph Offshore Pvt Ltd to Botas Trading IC, according to a regulatory filing.

• In January 2024, Cosco Shipping Heavy Industry in Shanghai delivered ETYFA’s converted FSRU which will serve the first Cyprus LNG import terminal in Vasilikos.

Further Details Available in the Report

Blackridge Research’s Global FSRU Market research report provides an FSRU market overview, comprehensive qualitative and quantitative analyses along with deep insight into the current and future of the market.

The market report analyses the annual trends of FSRU contracts, FSRU order book, the capacity of FSRU projects and investments into the sector; provides market size and forecast in terms of Capacity (MTPA); provides the list of upcoming LNG projects; details the market’s drivers and restraints; discusses growth challenges at various levels; provides supply chain analysis; provides company profiles and competitive market analysis including FSRU market share; discusses various market-specific scenarios and much more.

Analysis of the Russia-Ukraine conflict’s impact on the global FSRU market is an integral part of the report, which helps companies navigate a rapidly changing market landscape.

What Do We Cover in the Report?

Global FSRU Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow and the factors that constrain growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor’s respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will function as a guide for you to analyze the degree of impact.

Global FSRU Market Analysis

This report discusses an overview of the market, the latest updates, important commercial developments and structural trends, and government policies and regulations.

This section provides an assessment of the Russia-Ukraine conflict’s impact on global floating production storage and offloading market demand.

Global FSRU Market Size and Demand Forecast

The report provides global FSRU market size and demand forecasts until 2030, including year-on-year (YoY) growth rates and CAGR.

Global FSRU Industry Analysis

The report examines the critical elements of the global FSRU industry supply chain, its structure, and the participants.

Using Porter’s five forces framework, the report covers an assessment of the global FSRU industry’s state of competition and profitability.

Global FSRU Market Segmentation & Forecast

The report dissects the Global Floating Storage Regasification Unit (FSRU) Market into various segments based on construction type (new build ship, converted ship/hull).

Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.

Regional Market Analysis

The report covers detailed profiles of major countries across the world. Each country’s analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.

In addition, global market size, demand forecast, and growth rates will be provided for all regions.

The global FSRU market report is segmented based on geography into:

North America: United States, Canada, Mexico, and the Rest of North America

Europe: Spain, France, the United Kingdom (UK), Italy, Russia, and the Rest of Europe

Asia Pacific (APAC): China, India, Japan, South Korea, Australia, Indonesia, and the Rest of APAC;

Rest of the World: South America, Middle East, and Africa.

Key Company Profiles

This report presents detailed profiles of major market players in the global FSRU industry. Some of the major companies covered are Excelerate Energy, HÖEgh Lng As, BW Group, Samsung Heavy Industries, etc. Generally, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the global market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

The executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an executive summary chapter and ends with conclusions and recommendations.

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Also, check out our detailed analysis of the FSRU market in various regions (which covers key countries in each region): 

• North America FSRU Market

• Asia-Pacific FSRU Market

• Africa FSRU Market

• South America FSRU Market

• Europe FSRU Market