Small Scale LNG Market

Global Small Scale LNG Market Size (2024-2032):

The size of the global small scale LNG market was worth USD 8.51 billion in 2023. The global market is anticipated to grow at a CAGR of 8% from 2024 to 2032 and be worth USD 17.01 billion by 2032 from USD 9.19 billion in 2024.

Market Scenario

Small-scale liquefied natural gas (LNG) is liquefied natural gas that is made in limited-capacity industrial units. After being cooled to very low temperatures, the gas changes into an odorless, colorless liquid that can be turned back into gas for many different purposes. Small-scale LNG is better for the environment than oil, diesel, and other fuels and is often used to power factories and homes that are not connected to the power grid. Besides, it is used in industrial, commercial, and residential sectors as a heating source, fuel for transportation, and industrial feedstock. 

In recent years, a huge shift has shifted away from traditional fuel sources and towards liquefied natural gas. This is because LNG burns completely and releases less carbon than other fuels. Other than that, more and more people prefer greener and cleaner fuel sources, and liquefied natural gas is being used as a ship fuel instead of heavy fuel, marine gas oil, and diesel oil. This is heavily driving the market growth rate. As a result, the market is expected to grow over the forecast period. 

Market Drivers

Increasing demand for energy-efficient and cost-effective energy is one of the key factors driving the market’s growth rate. Also, the product’s widespread adoption in the transportation business is driving the market demand. As a result, increasing energy demand has boosted the demand for liquefied natural gas leading to a rise in LNG production. In addition, numerous outlying regions lack electricity, and government efforts to enhance rural electrification have boosted demand for the liquefied natural gas market. 

In addition, the decrease in natural gas costs and fluctuations in crude oil prices due to abundant crude oil output are also surging the small-scale LNG market demand. Furthermore, the increasing prevalence of natural gas as a transportation fuel increases the market's demand. Rapid industrialization is also another factor propelling the market growth rate. 

Market Restraints

The small-scale liquefied natural gas market will have challenges in its expansion as a result of the high cost of the supply chain. 

Global demand for small-scale liquefied natural gas is also anticipated to be hampered by diminishing natural resources. 

The high operating cost per kg will impact the small-scale liquefied natural gas market compared to mid-size LNG and large-size LNG. So, this will slow down the growth rate of the small-scale liquefied natural gas market. 

Market Opportunities

During the forecast period, the incorporation of new technology, the increase in investments, and the implementation of government policies that encourage liquefied natural gas will give market players chances to make money. In addition, the future growth of the small-scale liquefied natural gas market will also be helped by how easy it is to set up small-scale reserve sites.

SMALL SCALE LNG MARKET REPORT COVERAGE

Market Segmentation:

Global Small-Scale LNG Market Analysis By Type

• Liquefaction
• Regasification

Based on type, it is expected that the liquefaction segment will have the largest market share over the next few years. This segment is growing because more LNG is being exported, which needs to be cooled down before it can be moved from one port to another. Also, the growing need for LNG is driving the number of liquefaction terminals to pop up worldwide. Therefore, demand is likely to be driven by all the above factors during the forecast period. 

Global Small-Scale LNG Market Analysis By Application

• Heavy duty vehicles
• Industrial & Power 
• Marine Transport 
• Others

In terms of application, the heavy-duty truck segment is anticipated to hold the greatest market share in 2020. This segment’s rise is attributable to the rising usage of LNG as a fuel in heavy-duty vehicles, particularly in China and Europe. Globally, LNG is the most viable alternative for long-haul LNG-powered trucks. The density of LNG in heavy-duty vehicles can vary significantly throughout a variety of saturation pressures and storage temperatures. The LNG vehicle fuel system supplies natural gas to the engine at the needed supply pressure while optimizing fuel density in car tanks and fueling facilities. It is anticipated that these factors will drive demand during the forecast period. 

Market Regional Analysis:

• North America - U.S, Canada
• Europe - Norway, Germany, Sweden
• Asia Pacific - China, India, Japan
• Latin America - Brazil, Mexico, Argentina
• Middle East and Africa - Middle East, Africa

The Asia-Pacific region is the leading sector in the small-scale liquefied natural gas market. This is because the number of customers is growing, business-savvy businesses are growing, and the demand for small-scale LNG in transportation within the region is also growing. On the other hand, North America is anticipated to experience lucrative growth throughout the forecast period due to the rising consumption of small-scale LNG, the biggest number of natural gas manufacturing units, and the high availability of gas terminals in the region.

Impact Of COVID-19 on Small Scale Lng Market:

The COVID-19 outbreak had a substantial outbreak on the small-scale liquefied natural gas market due to disruptions in the inventory network, decreased energy consumption, and dwindling interest in more recent discoveries. Yet, as the demand for large-scale LNG plants to generate returns for investors increases, working groups increasingly support small-scale LNG initiatives. COVID-19 has had the opposite effect on the world economy, as many responsibilities have ceased. The oil and gas industry, the maritime sector, the automobile industry, the assembly industry, and the military are among the key businesses that utilize a restricted scope of LNG. As a result of a decline in the appeal of power post-COVID-19, organizations face certain difficulties in the force age sector. In addition, businesses such as development and assembly have halted their operations which have had a global influence on the small-scale LNG industry.

Market Key Players:

1. The Linde Group (Germany)
2. Wartsila Corporation (Finland)
3. Honeywell International Inc (US)
4. General Electric (US)
5. Engie (France)
6. Gazprom (Russia)
7. Gasum Ltd (Norway)
8. IHI Corporation (Japan)
9. Excelerate Energy LP (US)
10. Cryostar (US)
11. Novatek (Russia)
12. Teekay Corporation (Bermuda)
13. OSK Lines (Japan)
14. Hyundai Heavy Industries Co. Ltd (South Korea)

Market Key Developments:

• In August 2020, Wipro Limited reported that Uniper Global Commodities SE and its 100% LNG-for-trucks subsidiary Liqvis GmbH implemented a blockchain-based small-scale liquefied natural gas trading/fulfilment platform.