April 2022 Monthly Floating Production Systems Report
Tensions in East Europe and Covid outbreak in China continue to rattle the energy sector. Oil prices remain above $100, despite efforts to lower prices by releasing crude from strategic reserves. Natural gas prices also remain at elevated level, driven by fears of interrupted gas supply in Europe due to Russian gas export constraints. High oil and gas prices have been generating record profits for E&P operators, bolstering appetite for investment in new offshore projects. The floating LNG sector has been especially strong over the past two months. Anticipated sanctions and other constraints on Russian pipeline gas supply to Europe has surged interest in floating LNG regasification terminals. As described in our April report, 13 FSRU terminals are now in the advanced planning stage in Europe. Meanwhile, contracting activity for oil/gas production floaters has been quite active. Three FPSO projects moved to contract stage over the past month – construction of a huge FPSO for use offshore Guyana, an FPSO for use in Indonesia and conversion of an FPSO to redeploy off Brazil. Conversion of two FSUs for an LNG export project in BC Canada also got final notice to proceed. All is discussed in WER's April floater report. Also in the data section of the report are details for 195 floater projects in the planning stage, 61 production or storage floaters now on order, 306 floating production units currently in service and 27 production floaters available for redeployment contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 April.