BY THOMAS SHOMAKER
Japan is moving to the forefront of a new wave of LNG projects. Only this time, the plants float.
In early June, Mitsui O.S.K. Lines (MOL) announced a $300 million investment in Delfin FLNG 1, the first floating natural gas liquefaction facility planned off the U.S. coast. Located 74 kilometers off Louisiana, the vessel will have an annual production capacity of 4.4 million tons, making it one of the world’s largest floating LNG facilities. MOL will hold 23% of the project’s equity and contribute expertise gained from operating the world’s largest LNG carrier fleet.
Days later, JGC Corp said its French subsidiary would help build a new FLNG plant off Mozambique. JGC Global is also developing a standardized FLNG design intended to reduce the cost and construction time of the project-specific vessels that have so far dominated the industry.
The announcements reflect a broader shift. Japan, the world’s second-largest LNG importer, is increasingly deploying its capital, engineering expertise and shipping capabilities in FLNG projects overseas. The global market, worth nearly $30 billion in 2025, is projected to reach about $79 billion by 2034.
Asia-Pacific already accounts for around 35% of the market. But Japanese companies are now extending their reach beyond established regional partnerships to projects in Africa and the U.S. Gulf of Mexico.
For Japan, FLNG is more than a growth industry. Floating facilities can avoid congested ports, access otherwise stranded gas fields and, in some cases, be relocated when conditions change. That flexibility could provide an additional buffer against geopolitical disruption, extreme weather and other threats to conventional energy infrastructure.
The question is whether Japan can turn its early investments and technical advantages into a durable position in a rapidly expanding market – and whether efforts to standardize FLNG construction can finally bring down its stubbornly high costs.