Global Liquefied Natural Gas Market Is Estimated To Witness High Growth Owing To Growing Demand For Small-Scale Liquefied Natural Gas And Rising Industrialization

 

Liquefied Natural Gas Market

Overview:

LNG is a clear, odorless, and non-toxic liquid produced by cooling natural gas to about minus 259 degrees Fahrenheit. This process, called liquefaction, allows large quantities of the fossil fuel to be transported to markets that cannot easily be reached with traditional natural gas pipelines. LNG is stored in double-walled cryogenic tanks that are sealed and maintained at or slightly above atmospheric pressure. The material used for the tanks is mainly 9% nickel steel or other materials suitable for use in a cryogenic environment. Liquefied Natural Gas, also known as LNG is natural gas that has been cooled to a liquid state in order to be transported over long distances when pipeline transport is impractical. In its liquid form, it takes up around 600 times less space than when it is in its gaseous state allowing it to be shipped over long distances using specially designed ships or road tankers. When it reaches its destination, it is re-gasified and then distributed through natural gas networks in the same way as gas from conventional pipelines.

Market Dynamics:

Rising investments are estimated to augment growth of the global liquefied natural gas market during the forecast period. For instance, in April 2022, Petronet LNG declared the development of a floating LNG terminal, in Odisha, India by 2025. Petronet is estimated to invest USD 73 million in order to increase the capacity of the of the Dahej LNG import terminal from the current 17.5 million metric tons to 22.5 million metric tons per year. Moreover, increasing supply chain disruptions are anticipated to restrain growth of the global liquefied natural gas market during the forecast period.

Key Takeaways:

The Global Liquefied Natural Gas Market is expected to witness high growth, exhibiting CAGR of 9.0 % over the forecast period, due to increasing business expansion by key players. For instance, Sempra announced that their 70%-owned subsidiary Sempra Infrastructure Partners LP has reached a positive final investment decision for the construction, operations and development of the Port Arthur LNG Phase 1 project, in Jefferson County, Texas, in March 2023.

 

Asia-Pacific is anticipated to witness significant growth in the global liquefied natural gas market during the forecast period, due to growing demand for clean energy sources and increasing expansion of various industry verticals.

Impact of COVID-19:

The outbreak had a significant impact on the small-scale liquefied natural gas (LNG) market, as several disruptions were caused owing to the lower energy use, waning interest and inventory network. Due to COVID-19 the global economy was ruptured and many businesses had come to a standstill. Oil and gas, assembly, maritime, and auto industries use limited scope L.N.G, were facing challenges during the pandemic. Their productions activities were halted. This had a negative impact on the growth of the global liquefied natural gas market during the pandemic. However, in the post-pandemic era the market is estimated to witness growth.

Key players operating in the Global Liquefied Natural Gas Market are  Gasum AS, Fluor Corporation, Shell PLC, TechnipFMC PLC, HANJIN HEAVY INDUSTRIES & CONSTRUCTION HOLDINGS CO., LTD., Mitsui O.S.K.Lines, Hyunsdai Heavy Industries Co., Ltd., Teekay Corporation, Samsung Heavy Industries Co., Ltd., HYUNDAI SAMHO HEAVY INDUSTRIES CO.,LTD., Dynagas., Japan Marine United Corporation, China State Shipbuilding Corporation Limited, and Hudong-Zhonghua Shipbuilding (Group) Co., Ltd.