Meeting the Growing Energy Demand with Technical Support
By Terrance Roberts, Manager, Global Business Development, ABS
The global energy demand is on the rise, leading to a surge in the need for technical support and guidance in new locations. With the increasing appetite for natural gas, the development of global and regional supply chains is accelerating. Established producers are seeking new markets, while emerging suppliers are looking to meet the demand from local consumers.
Supply and Demand Dynamics
The demand for LNG is pushing export projects forward in North and South America, with new facilities also under development in Canada and South America. Emerging markets in demand centers across Asia and other regions are also ramping up production to meet the growing energy needs.
As countries seek to access remote reserves with limited infrastructure, Floating LNG technology is expected to gain market share as a way to capture new opportunities. This trend puts the onus on class societies and regulators to ensure the safe and efficient management of increased production capacity.
Global Market Trends
Europe has become an attractive destination for LNG suppliers due to geopolitical conflicts in the region, driving project developers to meet the demand in a timely manner. The competition for LNG cargoes between Europe and Asia is intensifying, influenced by price fluctuations, energy policies, and the need for supply diversification.
Extreme weather events, like droughts in South America, have impacted LNG imports and global balances, leading to price spikes. China remains the largest importer of LNG, with India and Southeast Asian countries also increasing their exposure to LNG imports.
New Facilities and Financing
Policy changes and an accelerated approval process have prompted developers to ramp up LNG export projects, with facilities receiving the green light as financing becomes available. Projects like Venture Global CP2, Woodside LNG, Glenfarne Texas LNG, and Next Decade Rio Grande Expansion are expected to contribute significantly to international markets by 2028.
However, production developments in new markets face challenges related to infrastructure and project finance. Floating LNG offers advantages in accessing remote reserves quickly and with reduced environmental impact, making it an attractive option for investors.
Ensuring Safety and Compliance
The rapid growth in FLNG projects in developing markets calls for close attention to safety regulations and technology behind these new builds. ABS, with its expertise in supporting complex FLNG projects, can assist developers in presenting their case with appropriate risk mitigations and ensuring compliance with industry standards.
With years of experience in FLNG projects, ABS can provide design approval, certification, guidance on rulemaking for regulators, and training for personnel. By working closely with clients and regulatory authorities, ABS ensures that FLNG projects meet the required safety standards.
About the Author: Terrance Roberts, ABS, serves as the Global Business Development Manager, Global Offshore, FLNG, focusing on capturing opportunities in the fast-paced FLNG market by providing critical risk mitigation guidelines to potential project developers.