Floating Storage and Regasification Unit (FSRU) Market Size & Outlook, 2025-2033

Floating Storage and Regasification Unit (fsru) Market Size

The global floating storage and regasification unit (FSRU) market size was valued at USD 903.34 million in 2024 and is projected to grow from USD 974.25 million in 2025 to reach USD 1783.33 million by 2033, growing at a CAGR of 7.85% during the forecast period (2025–2033).

The global floating storage and regasification unit (FSRU) market is driven by several key factors. The rising need for energy security and diversification is prompting countries to adopt FSRUs to reduce reliance on pipeline gas, especially amid geopolitical tensions like the Russia-Ukraine conflict. Additionally, FSRUs offer faster deployment and lower capital investment compared to traditional onshore LNG terminals, making them highly attractive for countries with urgent energy needs.

Furthermore, the demand for flexible and mobile LNG infrastructure is growing, particularly in island nations and developing regions where permanent terminals are less feasible. Moreover, supportive government policies and increasing public-private partnerships in the LNG sector are boosting FSRU adoption. These combined drivers are positioning FSRUs as a strategic, scalable, and cost-effective solution for expanding global LNG access and ensuring supply reliability in volatile energy markets.

Floating Storage and Regasification Unit (fsru) Market Trends

Technological Advancements in Vessel Design

Technological innovation in vessel design is reshaping the FSRU market, enabling enhanced performance, energy efficiency, and adaptability. Modern FSRUs are being equipped with advanced thermal insulation, dual-fuel engines, improved boil-off gas handling, and modular regasification systems to optimize LNG operations and reduce emissions. These enhancements also allow vessels to operate efficiently in harsher marine environments and support faster deployment timelines.

• For instance, in June 2025, Wärtsilä Gas Solutions was contracted to supply a high-efficiency regasification module for the Höegh Gandria, converting it into the FSRU Höegh Evi. This cutting-edge module enhances thermal performance and modularity, improving turn-key installation and lowering operational emissions—an important step toward greener FSRU operations.

As global LNG demand rises, such advancements are critical in driving sustainable and cost-effective FSRU deployments.

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Floating Storage and Regasification Unit (fsru) Market Growth Factor

Growing Global Lng Trade

The expanding global liquefied natural gas (LNG) trade is a significant driver for the global market. FSRUs offer a flexible, cost-effective solution for countries looking to import LNG without the long lead times or higher costs of onshore terminals. Their mobility and scalability make them especially attractive for emerging economies and regions undergoing energy diversification.

• According to the International Gas Union (2024), global LNG trade reached 405 million tonnes in 2023, up from 397 million tonnes in 2022. The IGU report also notes that this represents a 2.1% growth year-on-year. Shell further anticipates that the global LNG demand will rise by ~60% by 2040, reaching 630–718 million tonnes/year, supported by Asia’s demand, industrial growth, and the energy transition.

This expanding LNG market is expected to stimulate greater adoption of FSRUs globally.

Market Restraint

Regulatory and Environmental Challenges

One of the key restraints in the global market is the complex regulatory and environmental landscape. FSRU deployment involves compliance with international maritime laws, port regulations, and stringent environmental assessments. These include impact evaluations on marine ecosystems, emissions standards, and coastal land-use approvals.

Navigating such multifaceted regulations often leads to project delays, increased administrative costs, and potential cancellations. Additionally, public opposition in ecologically sensitive regions further complicates approvals. For example, FSRU projects in parts of Southeast Asia and Europe have faced delays due to environmental lobbying. These regulatory hurdles can significantly hinder the timely execution and scalability of FSRU infrastructure projects.

Market Opportunity

Hybrid Vessel Innovations

Hybrid vessel innovations represent a transformative opportunity in the FSRU market by merging regasification, storage, and power or hydrogen production into a single floating platform. These integrated solutions offer flexibility, faster deployment, and reduced infrastructure dependency, which is ideal for regions with limited shore-based energy networks.

• For instance, in April 2025, Wärtsilä Gas Solutions and Höegh Evi unveiled the world’s first floating ammonia-to-hydrogen cracker, a modular system designed for integration into hybrid FSRUs or standalone hydrogen terminals. It can deliver up to 210,000 tonnes/year of hydrogen from ammonia cargoes, enabling offshore conversion and direct feed into industrial or energy grids, accelerating Europe’s decarbonization efforts.

Such technological leaps address the dual goals of clean energy transition and energy accessibility. As global energy strategies shift toward multi-fuel flexibility, hybrid vessels are poised to redefine LNG infrastructure and boost market expansion.

Regional Analysis

Asia Pacific represents a high-growth region for the FSRU market due to rising energy consumption, constrained land availability for infrastructure, and a growing shift from coal to cleaner fuels like LNG. FSRUs provide a fast-track solution to bridge energy supply gaps in remote or rapidly urbanizing coastal regions. Increased private and public sector investments, along with government incentives to expand LNG accessibility, are supporting FSRU adoption. The region's strategic focus on energy import diversification and infrastructure scalability makes FSRUs a compelling alternative to fixed terminals.

• China's floating storage and regasification unit (FSRU) market is expanding to support its growing LNG imports amid efforts to decarbonize. In 2023, CNOOC launched a new FSRU project in Jiangsu to meet peak winter demand. The country is leveraging FSRUs to enhance energy security and bypass pipeline constraints. With LNG demand expected to grow by 50% by 2030, FSRUs offer a flexible, faster FSRU to onshore terminals.
• India's floating storage and regasification unit (FSRU) market is gaining traction due to limited onshore regasification capacity and rising LNG demand. H-Energy’s Jaigarh FSRU terminal in Maharashtra became operational in 2022, marking the country's first. India plans additional FSRU projects in Andhra Pradesh and West Bengal to improve access to imported gas for power, fertilizer, and industrial use. FSRUs support India’s strategy to increase the gas share in its energy mix to 15% by 2030.

North America Floating Storage and Regasification Unit (fsru) Market Trends

The FSRU market in North America is driven by the rising export volumes of LNG and the region’s strategic shift towards maritime infrastructure to support LNG trade. With growing LNG surplus and evolving energy trade routes, floating regasification units offer a flexible, cost-effective alternative to onshore terminals. Technological advancements and favorable investment environments further support market expansion. Moreover, growing demand from neighboring energy-deficient regions encourages domestic firms to invest in FSRU projects for regional supply diversification and enhanced gas export capabilities.

• The United States' floating storage and regasification unit (FSRU) market is driven by its LNG export boom and energy diplomacy. U.S.-based Excelerate Energy operates FSRUs globally and is a key player in the sector. While domestic FSRU deployment is limited, U.S. LNG producers are actively supplying FSRU-based terminals in Europe and Asia. The 2022 geopolitical tensions led to U.S. LNG feeding European FSRUs in Germany, the Netherlands, and Poland, boosting demand for FSRU infrastructure.
• Canada’s floating storage and regasification unit (FSRU) market is emerging as the nation seeks to diversify its LNG export capabilities, especially on the East Coast. The proposed Bear Head LNG project in Nova Scotia included FSRU options to enable flexible regasification. While Canada primarily focuses on liquefaction terminals, rising global FSRU demand is pushing Canadian firms to explore FSRUs for export and import support. Regulatory approvals and infrastructure development remain key to future deployment.

Europe Market Trends

Europe is witnessing accelerated FSRU deployment due to an urgent need to diversify energy sources and reduce dependency on pipeline gas imports. Floating regasification units offer the flexibility to quickly ramp up LNG import capacity without the delays of constructing onshore terminals. The region's stringent energy security policies and decarbonization goals are fostering rapid investment in LNG infrastructure. Additionally, FSRUs are seen as a transitional solution to meet fluctuating demand, supporting the integration of intermittent renewable energy while maintaining grid reliability across multiple European ports.

• Germany’s floating storage and regasification unit (FSRU) market has expanded rapidly in response to the energy crisis triggered by reduced Russian gas imports. The country deployed five FSRUs by early 2024, including the “Höegh Esperanza” at Wilhelmshaven. These units offer a quick solution to diversify LNG sources. Government-backed projects aim to make FSRUs a permanent part of Germany’s energy transition strategy.
• The UK’s floating storage and regasification unit (FSRU) market is emerging as a strategic asset to bolster energy resilience amid fluctuating global gas supplies. In 2022, the UK leased the “Exemplar” FSRU, moored at the Isle of Grain, to increase LNG import capacity. As demand for flexible energy infrastructure grows, the UK is considering further FSRU investments to complement its onshore terminals.

Type Insights

The mooring type segment holds a significant share in the FSRU market due to its stability and long-term operational suitability. These units are anchored at a fixed location, typically near shorelines or ports, providing a reliable and consistent LNG supply. Mooring-type FSRUs are ideal for regions with continuous demand and limited infrastructure, allowing countries to establish energy import facilities quickly without the need for extensive onshore terminal development.

Storage Capacity Insights

FSRUs with storage capacities of less than 150,000 m³ are favored for smaller-scale applications and regions with limited LNG demand. These units are particularly suitable for island nations, remote industrial zones, and niche markets seeking cost-effective LNG solutions. Their compact design enables faster deployment, reduced capital expenditure, and easier docking at shallow or smaller ports, making them an attractive option for emerging economies entering the LNG import space.

Construction Type Insights

The new build segment is gaining traction as countries seek customized, technologically advanced FSRUs with enhanced efficiency and environmental compliance. These vessels are designed from the ground up to meet specific capacity and regasification needs, ensuring optimal performance. Unlike converted units, new builds offer greater operational lifespan, reduced maintenance, and the ability to integrate hybrid systems, including power generation and automation, aligning with evolving energy infrastructure goals worldwide.

Application Insights

Power generation is a key application area for FSRUs, especially in regions facing electricity shortages or seasonal demand spikes. FSRUs supply LNG to gas-fired power plants, enabling cleaner energy production compared to coal or oil. Their quick deployment and flexible operations make them ideal for meeting temporary or peak load power requirements. Countries in Asia, the Middle East, and Africa are increasingly adopting FSRUs to support national grids and improve energy reliability.

End-User Insights

In the marine segment, FSRUs serve as floating LNG storage and bunkering stations, addressing the growing demand for cleaner marine fuels under IMO 2020 regulations. These units enable efficient LNG transfer to vessels, reducing emissions from maritime transport. Ports integrating FSRUs for marine fueling benefit from lower infrastructure costs and increased flexibility. As LNG gains momentum as a marine fuel, FSRUs play a pivotal role in supporting greener shipping operations.

Company Market Share

Companies in the FSRU market are focusing on expanding their global footprint through strategic partnerships, long-term lease agreements, and investment in advanced vessel technology. They are enhancing regasification efficiency, increasing storage capacities, and offering flexible deployment models to attract new clients. Additionally, firms are exploring hybrid FSRU solutions and targeting emerging markets with limited LNG infrastructure to strengthen their position and capitalize on the growing demand for cleaner energy solutions.

Excelerate Energy

Excelerate Energy, founded in 2003 by George B. Kaiser, pioneered the commercial FSRU market and now operates one of the world’s largest fleets. It provides LNG regasification via long‑term charters across regions, including Argentina, Brazil, Bangladesh, Pakistan, UAE, Finland, and Germany, with ten vessels delivering over 7 billion cf/d through 16 terminals. Excelerate is expanding: a new 170,000 m³ FSRU is under construction for delivery in mid‑2026, reinforcing its position as a leader in flexible LNG solutions.

• In September 2024, Excelerate Energy and PetroVietnam Technical Services Corporation (PTSC) signed a strategic partnership agreement to jointly study Floating Storage Regasification Unit (FSRU) based technical solutions for LNG imports into Vietnam. This partnership aims to explore the feasibility of using FSRUs to import and regasify LNG, addressing Vietnam's growing energy demand and supporting its transition to cleaner energy.

List of key players in Floating Storage and Regasification Unit (FSRU) Market

1. Höegh LNG
2. Excelerate Energy
3. Golar LNG
4. BW LNG
5. Samsung Heavy Industries
6. Daewoo Shipbuilding & Marine Engineering (DSME)
7. Mitsui O.S.K. Lines (MOL)
8. Hyundai Heavy Industries
9. Maran Gas Maritime
10. Kawasaki Heavy Industries

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Recent Developments

• June 2025- Poland’s Gaz‑System secured a PLN 2.2 billion (€515–593 million) loan in June 2025 to build a 250 km onshore pipeline connecting the planned 6.1 bcm/year FSRU terminal in the Bay of Gdańsk. A contractor consortium was also selected in April 2025 for the jetty and offshore pipeline, with commissioning expected in Q1 2028.
• May 2025- New Fortress Energy has chartered the 125,000 m³ FSRU Energos Freeze to Energía 2000 S.A., marking a three-year agreement. The unit will be stationed at the Pepillo Salcedo terminal in Manzanillo and is slated to start operations in September 2025, supporting power generation and industrial gas demand in the region
• May 2025- Germany’s Deutsche Energy Terminal (DET) commissioned its third floating LNG import terminal, Wilhelmshaven 2. The 277 m FSRU Excelsior docked at an offshore jetty 1.5 km from shore and began regasification, initially feeding 1.9 bcm/year, ramping up to 4.6 bcm/year—enough to heat 3.7 million homes.