Gas-fired power plants provide flexibility to complement renewable energy. But a power plant is worthless without a gas supply. The LNG regasification unit market enables gas-fired generation in regions without pipeline access. FSRUs can be located near coastal power plants, feeding gas directly to the turbines.

Direct Supply to Power Plants

An FSRU can be connected directly to a gas-fired power plant via a dedicated pipeline, bypassing the wider gas distribution network. The floating gas terminal market has developed "dedicated" FSRU-power plant configurations. The FSRU provides fuel security for the power plant, and the power plant provides a guaranteed off-taker for the FSRU. This vertical integration reduces counterparty risk and can lower financing costs.

The Fast-Start Power Plant Integration

Some gas-fired power plants are designed for fast start (quick response to grid fluctuations). The FSRU supplying such a plant must be able to ramp gas flow quickly. The LNG regasification unit market has developed vaporizers with fast response and buffer storage (gas holders) to smooth demand fluctuations. The control system of the FSRU is integrated with the power plant control system, enabling coordinated operation. A sudden power plant trip (loss of demand) requires the FSRU to reduce gas flow immediately or flare excess gas.

Combined Cycle vs. Open Cycle

Combined cycle gas turbine (CCGT) plants are more efficient (using waste heat for steam generation) but have slower start-up. Open cycle (simple cycle) plants are less efficient but can start rapidly. The floating gas terminal market supplies FSRUs for both configurations. CCGT plants require steady, continuous gas flow; simple cycle plants require rapid ramping. The FSRU's regasification capacity must be sized for the power plant's peak demand, which may occur only for short periods.

Floating Storage as a Buffer for Renewable Intermittency

As solar and wind penetration increases, gas-fired plants are used more for peaking (covering shortfalls) rather than baseload. An FSRU's storage tanks provide a buffer: LNG can be delivered by carrier infrequently (e.g., weekly) and stored until needed. The LNG regasification unit market has optimized storage capacity for peaking plants: larger storage (to cover long periods between deliveries) but moderate regasification capacity (peak demand may be high but infrequent). The FSRU effectively decouples LNG delivery timing from power plant demand.

Pressure and Flow Matching

A gas turbine requires gas at a specific pressure (typically 20-40 bar). The FSRU's vaporizers output gas at lower pressure. The floating gas terminal market installs gas compressors (or uses the power plant's own compressors) to boost pressure to the required level. Flow matching is also critical: the FSRU must deliver gas at the rate the turbine consumes it. Rapid changes in turbine load (due to grid fluctuations) require equally rapid changes in FSRU output. Advanced controls are essential.

The Emergence of Small-Scale FSRUs

Not every gas-fired power plant is large. Small-scale power plants (tens of MW) and industrial cogeneration plants (combined heat and power, CHP) require smaller FSRUs. The LNG regasification unit market has developed "mini-FSRUs" with reduced storage and regasification capacity. These are often converted from small LNG carriers or built on barges. Mini-FSRUs can be deployed at river locations accessible to small LNG carriers. They open new markets for distributed gas-fired generation.

FSRUs for Industrial Heat

Many industrial processes (chemicals, refining, steel, ceramics) require high-temperature heat, often provided by natural gas. An FSRU can supply gas directly to an industrial facility (or an industrial cluster) via a dedicated pipeline. The floating gas terminal market includes FSRUs for industrial applications, often with lower regasification capacity than power plant FSRUs. Industrial off-takers provide stable, predictable demand, which is attractive to FSRU operators. However, industrial sites are often located inland, requiring longer pipelines.

Seasonal Storage and Peak Shaving

Natural gas demand is seasonal (higher in winter). An FSRU's storage tanks can be used for seasonal storage: fill the tanks during summer (when LNG prices may be lower and carriers available) and regasify during winter peak demand. The LNG regasification unit market has developed seasonal storage FSRUs with very large tanks (as a fraction of regasification capacity). The FSRU may only regasify for a few months per year, remaining idle (or providing minimal gas) the rest of the year. This peak-shaving application is economic in markets with high seasonal price variation.

The Hydrogen-Ready Power Plant Interface

Gas-fired power plants are being designed as "hydrogen-ready," able to burn blends of natural gas and hydrogen (up to a certain percentage). The floating gas terminal market is responding: new FSRUs are being designed with materials compatible with hydrogen embrittlement and with controls that can handle variable gas composition. The FSRU of the future may regasify liquid hydrogen (LH2) or ammonia (NH3) instead of LNG. This transition is likely many years away but influences current design decisions.

Power Plant Economics with FSRU Supply

The economics of a gas-fired power plant depend on the cost of delivered gas. An FSRU-supplied plant has higher capital cost (the FSRU) but may have lower gas cost (access to global LNG market) than a pipeline-supplied plant (which may be subject to regional pricing). The floating gas terminal market has developed economic models that compare the levelized cost of electricity (LCOE) for FSRU-supplied vs. pipeline-supplied plants. In regions with high pipeline gas prices, FSRU supply can be cheaper despite the additional capital cost. The LNG regasification unit market is the enabler of flexible, low-cost gas for power generation. And the floating gas terminal market continues to refine the interface between floating LNG import and stationary gas consumption.

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