Fairplay: FLNG Projects Face Financing Challenges

“Despite all the positivity about floating LNG (FLNG) vessels being able to monetise stranded gas resources, financing remains a challenge, said tanker consultancy Poten & Partners. This is largely because FLNG is a relatively new concept. “Poten said: ‘Ideally, commercial banks would like to see an FLNG operating track record before they consider providing funding via a project finance structure because they have little appetite for new technology risk. Even if they embraced it, banks would charge a hefty premium.'”