Storing large volumes of liquid is expensive on land. The floating storage market provides an alternative: using ship-shaped vessels as storage units. This includes FSOs (Floating Storage and Offloading) for oil, and FSRUs (Floating Storage and Regasification Units) for LNG. Floating storage is particularly useful for offshore production (in conjunction with an FPSO) or for import terminals where onshore storage is constrained. As the global energy market evolves, the floating storage market is growing.
The broader FSRU market is a specialized segment. The floating storage market for "FSOs" (for oil) is mature, used in many offshore fields. The floating storage market for "FSUs" (Floating Storage Units) is a general term. The floating storage market for "FSRUs" is the focus here. The floating storage market for "LNG carriers" also perform storage while in transit.
The floating storage market for "converted" vessels (from oil tankers or LNG carriers) is the most common. The floating storage market for "new build" vessels is more expensive but offers longer life. The floating storage market for "stationary" storage (moored) vs. "dynamic" (in transit) is a distinction. The floating storage market for "offshore" (away from the coast) vs. "quayside" (at a jetty) is also segmented.
The floating storage market for "capacity" is measured in cubic meters (for LNG) or barrels (for oil). The floating storage market for "large" FSRUs (over 170,000 cbm) is for major importers. The floating storage market for "medium" FSRUs (50,000-150,000 cbm) is for smaller markets. The floating storage market for "small" FSRUs (under 50,000 cbm) is for niche applications.
The floating storage market for "regasification" (FSRUs) adds processing capability. The floating storage market for "pure storage" (FSOs) does not. The floating storage market for "floating" advantage is that vessels can be moved to where storage is needed most. The floating storage market for "charter" rates (daily hire) fluctuates with supply and demand.
Looking ahead, the floating storage market will see the use of "FLNG" (Floating Liquefied Natural Gas) vessels, which combine production, storage, and offloading. The floating storage market for "green" ammonia (for hydrogen transport) is a new segment. The floating storage market for "floating" carbon capture (storing captured CO2) is a long-term possibility. As the energy industry innovates, the floating storage market will evolve to carry new commodities.
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