The global floating storage regasification unit (FSRU) market is booming, with European countries leading the deployment of these medium-sized LNG import terminals. Originally utilized in Asia and other developing regions, FSRUs are now being promoted as a quick solution to Europe's energy security concerns. In just two years from 2021, Europe deployed 9 FSRUs in response to Russia's reduction of piped-gas supply.

This report provides a comprehensive analysis of FSRUs, examining their growing trend, key industry players, associated risks, and illustrative case studies from Germany, Croatia, Bangladesh, Indonesia, Pakistan and the Philippines. It reveals that the FSRU trend overlooks critical factors, including their failure to effectively address energy security, their long-term climate impact, and the substantial environmental and financial costs of shifting from pipeline gas to LNG.

The report also highlights a concerning trend of declining utilization rates for global LNG import facilities, with rates dropping to as low as 37% in May 2024. This trend indicates a growing risk of stranded assets and overinvestment in LNG infrastructure.

In light of these findings, the report calls for urgent action from policymakers and financiers, including:

• Strengthening regulatory oversight of FSRU projects

• Accelerating the transition to renewable energy

• Protecting local communities and ecosystems

• Conducting comprehensive risk assessments for FSRU investments

• Prioritizing the shift of finance towards renewables

By shedding light on these critical issues, this report aims to inform decision-making and promote more sustainable approaches to energy security and climate change mitigation.

Related Content

[Report]LNG Carriers: The Floating Pipeline Powering Global Gas Expansion - Unveiling its Hidden Enablers

[Insights]Floating Pipelines Fuelling the Fossil Fuel Crisis: LNG Carriers