LNG is a relatively cheap and clean energy source and the energy demand in developing countries is driving the conversion, assembly and operations of FSRUs. FSRU is a more cost-effective way to meet low demand or to "grow into" LNG than traditional land based terminal. It is quicker (25 months from FID) to develop than land based facilities. This can be beneficial where a short to medium term opportunity exists.
- Reduced challenges with permitting; it is utilizing the cleanest fossil fuel and sited offshore or near shore. Thus, avoids "not in my backyard syndrome" (NIMBYS) resistance from the local communities.
- Less risk of delays related to land acquisitions or right-of-way issues.
- Low cost / fast start-up, industry estimates suggest FSRU terminal up to ~50%-75% less expensive than land based.
- Rapid access to high value gas markets.
- For suppliers - it can support LNG trading strategies for a low cost option to access new emerging markets.
- Reduced financing requirements; the storage tanks are already "built in" to the converted LNG carrier (LNGC), which are the most expensive regas terminal components.
- Possible flexibility as LNGC and/or as an FSRU (permanently moored offshore) at other location.
- More suitable to less stable environments; it can mitigate security concerns.
- Can be relocated if demand is not sustainable over the long-term.