As global LNG supply becomes increasingly concentrated in a small number of countries, floating LNG is emerging as a strategic way to open new production centres and reduce exposure to disruption.
Seven FLNG projects sanctioned since 2023 are adding 18 mmtpa of new capacity across six countries, while Wood Mackenzie estimates that an extended disruption to Gulf LNG supply could leave global availability around 70 mmtpa below pre-conflict levels through to 2035.
By 2030, around half of global LNG production capacity is expected to sit in just two countries, increasing the value of alternative export routes and geographically diversified supply.
“Seven projects sanctioned in three years, backed by infrastructure investors, IOCs and LNG traders, is not a technology bet,” said Fraser Carson, Principal Research Analyst, Global LNG at Wood Mackenzie. “The cost gap with onshore has closed and floating LNG now competes on merit in the locations that matter.”
FLNG currently represents less than 10% of new global liquefaction supply, but its importance lies in opening resources that would otherwise have limited routes to market. All proposed new LNG capacity in South America and West Africa currently relies on floating concepts.
Economics are also becoming more competitive. Delfin LNG FLNG 1, sanctioned in June 2026, is expected to deliver 4.4 mmtpa of capacity at an estimated cost of around $932 per tonne, broadly in line with recent US onshore LNG projects.
Recent FLNG developments show breakeven costs of approximately $2.3 to $4.6 per MMBtu, while fleet utilisation averaged 88% in 2024 and 2025, compared with around 85% for onshore facilities.
Redeployment provides another advantage. Moving an existing FLNG unit can require substantially less capital than constructing a new vessel. Golar LNG’s Hilli, for example, is being redeployed at an estimated cost of around $350 million, compared with $1.5–2 billion for a newbuild unit.
However, Wood Mackenzie identifies commercial ownership as a potential constraint. Of 15 operational and under-construction FLNG units, 12 are project-owned, while only three operate under a lease-and-operate model, all supplied by Golar LNG.
With more than 80 mmtpa of FLNG projects currently in the pre-FID pipeline and significant undeveloped gas resources suitable for floating production, Wood Mackenzie sees considerable scope for new entrants as demand for flexible LNG infrastructure grows.
