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Liquefied natural gas (LNG) is a colorless and non-toxic and liquid form of natural gas. It is from cooling the natural gas. The cooling process makes the LNG easier and safer to store and ship. This liquid natural gas is turned into a gas at the regasification plant. It is further piped to homes, businesses, and industries. Liquid natural gas is emerging as a cost-competitive and cleaner fuel for shipping heavy-duty road transport. The global liquefied natural gas market is estimated and forecasted in terms of revenue (USD million) generated by the market. The growth of the liquefied natural gas market is attributed to growing industrialization and globalization. Moreover, liquefied natural gas is a carbon-emitting fossil fuel that burns cleaner than coal and heating oil which further boosts the market. However, the increasing prices and shortage of liquefied natural gas, and limited pipeline infrastructure in developing and underdeveloped countries are the factors that hinder the growth of the liquefied natural gas market.
Rising demand for a clean source of energy by end-users such as power generation, transportation fuel, etc., and increasing support from the government and their initiatives to strengthen gas pipeline infrastructure are expected to fuel the market during the forecast period. For instance, Global nominal natural gas liquefaction capacity increased from 336.7 million tons per year in 2017 to 378.67 million tons per year in 2022 according to the International Gas Union report. Increasing population growth results in demand for infrastructural development activities, especially in countries such as India, China, and Brazil. This increasing growth also demands fuel for power generation which drives the market. Governments worldwide are also focusing on the development of sustainable energy generation sources which results in demand for LNG.
LNG has comparatively lower cost and lower emissions from production and combustion which provide a lucrative opportunity during the forecast period. Lower wholesale gas prices, for instance, mean LNG is increasingly favorable when compared with alternatives such as oil. Rising investments in terminals and pipelines to connect gas to customers have also given the market key player a great opportunity to invest in the market. For instance, In October 2019, Mitsui & Co. Ltd. and Sempra Energy signed an agreement that aimed at the future expansion of the Energia Costa Azul (ECA) LNG Project in Baja California, Mexico, and will contribute to growing the market of LNG. Various key players are also adopting new strategies such as a partnership. Business expansion, partnership, acquisition, and agreement to stay competitive in the market. For instance, In September 2019, Virtual Private Storefront was launched by Freeport LNG & Redwood Markets, Inc. to sell liquefied natural gas inside the redwood marketplace which will strengthen the LNG business of the company.
A highly fluctuating market due to a larger dependency on oil prices is the major restrain of Liquefied Natural Gas Market. Moreover, these spot prices of gas are set via oil linkage in an emerging market. The lack of universal directives about the applications of LNG is also hampering the market of LNG as every country has different directives about the applications of LNG. Key players find it difficult to cope with these country-wise regulations and directives so this is discouraging investment in the market, thereby hampering the market growth during the forecast period.
LNG has become one of the most demanding gas worldwide due to the uneconomical nature of transporting NG to remote locations. But there are cost challenges between LNG exporters and importers related to supply chains. Moreover, LNG fuel has a low environmental impact but has disadvantages to be used as ship fuel such as separate engines are needed to be installed that can use LNG fuel which requires capital investment and re-liquefaction equipment. Total cost increases by 15%-30% as compared to conventional fuel vessels.
The report provides an in-depth analysis of the Global Liquefied Natural Gas Market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. Increasing focus on projects concerning distributed power & utility and rising demand for electric power through clean energy sources are attributed to the market growth.
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Global liquefied natural gas market based on process type into liquefaction terminal and regasification terminal. Liquefaction and regasification are the two main processes used for the manufacturing of liquefied natural gas. Regasification is a process of converting liquefied natural gas into natural gas at atmospheric temperature. The regasification process helps in the convenient transportation and storage of liquefied natural gas. At the liquefaction terminal, the gas is converted into liquid form. Based on application, the global liquefied natural gas market is categorized into power generation, transportation, and mining & industrial. The power generation segment is anticipated to gain the highest CAGR during the forecast period. Liquefied natural gas is an important feedstock for the power generating industries and increasing demand & investments in the power generation sector are projected to robust the growth of the liquefied natural gas market over the projected period. By geography, the global liquefied natural gas market is studied across the countries of key regions such as North America, Europe, Asia Pacific, Latin America, and the middle East & Africa. The Asia Pacific is expected to dominate the liquefied natural gas market during the forecast period. The growth of the Asian market is driven by factors such as growing industrialization, infrastructure development, and strong economic growth.
| Market Sizing for Year: | 2019-2028 |
| Base Year: | 2021 |
| Forecast Period: | 2022-2028 |
| Value: | USD
million |
| Market Segment studied: | LNG Infrastructure Process Type End User |
| Market Players and its Competitors: | Anadarko Petroleum Corporation Chevron Corporation NIOC PETRONAS ROSNEFT WOODSIDE Cheniere Energy, Inc Gazprom INPEX NOVATEK Exxon Mobil Corporation Royal Dutch Shell British Petroleum Petro China Equinor ASA Gazprom Canadian Natural ConocoPhillips Company ENI China National Petroleum Corporation |
FREQUENTLY ASKED QUESTIONS
What are the drivers for Liquefied Natural Gas Market?
The key driving factors of the market are increasing industrialization and globalization.
Which is the leading end-users segment for Liquefied Natural Gas market?
Among the end-users, the commercial sector dominates the LNG market during the forecast period due to a rise in awareness and preference for cleaner sources of energy for power generation.
Which region is gaining a majority of market share during the forecast period (2022-2028)?
Asia Pacific is expected to dominate the LNG market during the forecast period (2022-2028).
