Liquified Natural Gas (LNG) market is projected to grow at a CAGR of 5.9% by 2033: Visiongain
As per the report by Visiongain, the Global Liquified Natural Gas (LNG) Market was valued at US$275.0 billion in 2022 and is projected to grow at a CAGR of 5.9% during the forecast period 2023-2033.
Visiongain has published a new report entitled Liquified Natural Gas (LNG) 2023-2033. It includes profiles of Liquified Natural Gas (LNG) and Forecasts Market Segment by (Value (US$ Billion), Volume (BCM)) Market Segment by Transport Fuel (Heavy-Duty Vehicles, Passenger Vehicles, Marine Transport, Other Transport Fuel) Market Segment by End-Use (Domestic Use, Industrial Use, Commercial Use, Transportation Use, Utilities and Power Use, Other End-Use) plus COVID-19 Impact Analysis and Recovery Pattern Analysis (“V”-shaped, “W”-shaped, “U”-shaped, “L”-shaped), Profiles of Leading Companies, Region and Country.
Fuel Flexibility is Aided by LNG Infrastructure
The development of liquefied natural gas (LNG) infrastructure can provide opportunities for the LNG market and increase fuel flexibility. LNG is a versatile and clean-burning fuel that can be used in various applications, including power generation, industrial processes, and transportation.
The infrastructure required for the production, transport, and storage of LNG includes liquefaction plants, LNG carriers, regasification terminals, and storage tanks. The development of this infrastructure can provide access to LNG for a wider range of customers, including those in remote areas or without access to pipelines.
In the transportation sector, LNG can be used as a fuel for ships and trucks, providing a cleaner alternative to traditional diesel fuels. LNG-powered ships can reduce emissions of sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter (PM), as well as greenhouse gases (GHG) such as carbon dioxide (CO2).
The fuel flexibility provided by LNG infrastructure can also help to improve energy security by diversifying the sources and types of fuel available. LNG can be sourced from multiple regions and is not subject to the same geopolitical risks as oil. This can help to reduce the dependence on oil and mitigate the impact of oil price volatility.
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How has COVID-19 had a significant negative impact on the Liquified Natural Gas (LNG) Market?
The COVID-19 pandemic has had a significant impact on the global LNG market, leading to a decline in demand, delays in new projects, and a drop-in price. However, the market is expected to recover in the coming years, driven by the growing demand for cleaner energy sources, particularly in developing countries.
In terms of demand, the pandemic has had a significant impact on LNG importers, particularly in Asia. China, the world’s largest LNG importer, saw a decline in demand due to reduced economic activity and the shutdown of manufacturing plants. India, another major importer, also saw a decline in demand due to the closure of businesses and transportation systems.
The pandemic has also affected LNG pricing. In the first half of 2020, LNG prices fell to record lows, driven by the drop in demand and the oversupply of LNG. However, prices have since rebounded due to the recovery of demand and supply disruptions caused by weather events and maintenance work at production facilities.
Despite the challenges posed by the pandemic, the LNG market is expected to recover in the coming years. The International Energy Agency (IEA) predicts that LNG demand will rebound in 2021 and continue to grow in the coming years. Developing countries in Asia and Africa are expected to increase their demand for LNG as they seek to meet their growing energy needs.
How will this Report Benefit you?
Visiongain’s 340-page report provides 165 tables and 209 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the global liquified natural gas (LNG) market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Liquified Natural Gas (LNG). Get financial analysis of the overall market and different segments including market value, market volume, transport fuel, and end-use, and capture higher market share. We believe that there are strong opportunities in this fast-growing liquified natural gas (LNG) market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.
What are the Current Market Drivers?
High Demand for Small-Scale Liquefied Natural Gas (LNG)
The increasing demand for energy sources that are both economical and efficient in terms of energy use is one of the main factors fueling the market’s expansion. Additionally, the product’s widespread acceptance in the transportation sector is accelerating market expansion. The requirement for liquefied natural gas (LNG) has increased due to the rising energy demand, leading to an increase in LNG production (LNG). As a result of government initiatives to boost rural electrification and the abundance of distant places without electricity, demand for liquefied natural gas has surged (LNG). The market for small-scale liquefied natural gas (LNG) will continue to increase due to the quick industrialization and strong demand for natural gas as a transportation fuel. Additionally, the rise in market value will be fueled by the drop in natural gas prices and the swings in crude oil prices brought on by overproduction.
Increase in Clean Energy Demand
The liquefied natural gas market is anticipated to expand over the course of the forecast period due to key factors including rising end-user demand for clean energy in sectors such as transportation fuel, power generation, mining, and industrial, as well as government initiatives to strengthen gas pipeline infrastructure. The global nominal natural gas liquefaction capacity has grown, according to a report by the International Gas Union.
In both Europe and the USA, where power generation had been stagnating between 2010 and 2019 before dipping by 3% in 2022, the economic recovery spurred power generation. This higher power production in Europe and the USA was exceptionally supported by a rising coal-fired generation, in a context of soaring gas prices, and by a strong growth in renewable power generation (despite a lower wind generation in the EU, which was more than offset by an improved nuclear availability).
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Where are the Market Opportunities?
Technology and Government Policy Integration
The integration of technology and government policy can certainly create opportunities for the LNG market. Here are a few examples:
Increased use of technology in the LNG industry can improve efficiency and reduce costs. For example, the use of digital monitoring systems can help to optimize LNG plant operations, reduce downtime, and increase overall production. Government policies that incentivize the adoption of such technologies can spur innovation and investment in the industry.
Government policies that promote the use of LNG as a cleaner alternative to other fossil fuels can create new markets for LNG producers. For example, policies that incentivize the use of LNG in transportation (such as in trucks and ships) can increase demand for the fuel.
Government policies that support the development of LNG infrastructure can create new opportunities for LNG producers. For example, policies that promote the construction of LNG import and export terminals can create new markets for LNG producers and help to connect supply and demand.
Improved Economics Aiding the Growth of the LNG Market
Liquefied natural gas (LNG) is becoming increasingly competitive in the energy market as the economics of producing, transporting, and consuming it continue to improve. Some of the key factors driving this trend include:
Cost reductions in liquefaction: The process of converting natural gas into LNG has become more efficient, resulting in lower costs for producers. This is partly due to advancements in technology and engineering, which have made liquefaction plants more energy-efficient and streamlined.
Increasing economies of scale: As the global demand for LNG grows, producers are building larger liquefaction facilities to meet this demand. This results in lower costs per unit of LNG produced, as the fixed costs associated with building and operating these facilities are spread over a larger output.
Advances in shipping: LNG can now be transported more efficiently and cost-effectively than ever before. This is due to the development of specialized LNG carriers, which can carry larger volumes of LNG and have improved energy efficiency. Additionally, new shipping routes are being developed to connect LNG producers with new markets, further reducing transportation costs.
Growing demand for natural gas: Natural gas is increasingly being recognized as a cleaner and more environmentally-friendly alternative to coal and other fossil fuels. As a result, demand for natural gas, and LNG in particular, is expected to continue to grow in the coming years.
The major players operating in the liquified natural gas (LNG) market are BG Group plc, BP Plc, Chesapeake Energy Corporation, Chevron Corporation, ConocoPhillips Company, Eni S.p.A., Equinor ASA, ExxonMobil Corporation, Gazprom PJSC, INPEX Corporation, Petronas Dagangan Berhad, Qatargas, Royal Dutch Shell Plc., TotalEnergies SE, Woodside Energy Group Ltd. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.
- 20 Feb 2023, Shell has acquired the largest producer of renewable natural gas (RNG) in Europe, its portfolio of operating plants, associated feedstock supply and infrastructure, its pipeline of growth projects, and its in-house expertise in the design, construction, and operation of innovative and differentiated RNG plant technology by purchasing shares in Nature Energy
- 08 March 2023, PETRONAS has launched the LNG bunkering business with long-term partner TIGER GAS under the PETRONAS Marine brand. This follows the completion of its first ship-to-ship LNG bunkering operation for the latter’s Tiger Maanshan, the world’s largest dual-fuel deck cargo ship, of approximately 500 tonnes of LNG. As a result, TIGER GAS becomes the first Chinese customer of PETRONAS LNG bunkering services.
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To find more Visiongain research reports on the gas sector, click on the following links:
- Liquefied Natural Gas (LNG) Storage Tank Market Report 2021-2031
- Liquefied Natural Gas (LNG) Bunkering Market Report 2021-2031
- Floating LNG Power Vessel Market Report 2021-2031
- Small Scale Liquefied Natural Gas (SSLNG) Market Report 2023-2033
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