Small-Scale LNG Market Overview
The Small-Scale LNG Market size is projected to grow at a CAGR of 2.5% during the forecast period 2022-2027 and reach US$2.9 billion by 2027. LNG (liquefied natural gas) can be categorized into liquefaction and regasification terminals and it is mostly supplied from these terminals to various end-users through pipelines, transshipment & bunkering, rails or trucks. They are primarily used in a wide range of industries including automotive, marine, construction, power generation and others. The expansion of small-scale LNG is primarily driven by its usage in the marine industry. Surging developments associated with LNG-fueled marine ships and rails are expected to drive the growth of the Small-Scale LNG Market size in the upcoming years. In 2020, the surge in the COVID-19 pandemic negatively impacted the marine sector as a result of the country-wide shutdown of manufacturing sites, shortage of labor and the decline of the supply and demand chain all across the world. These factors temporarily affected the growth of the small-scale LNG industry as it is primarily used as a marine fuel to power LNG ships and carriers. However, a steady recovery in production activities from the marine sector has been witnessed across many countries around the world since 2021, which in turn, is driving the demand for Small-scale LNG.
Small-Scale
LNG Market Report Coverage
The
"Small-Scale LNG Market Report – Forecast (2022-2027)” by IndustryARC,
covers an in-depth analysis of the following segments in the Small-Scale LNG Market.
By Type: Liquefaction and Regasification.
By Mode of Supply: Pipeline, Transshipment and Bunkering, Truck and Rail.
By End-use
Industry: Transportation [Automotive (Passenger Cars, Light Commercial Vehicle and Heavy Commercial
Vehicles), Aerospace (Commercial, Military and Others), Marine (Passenger Ships
& Cruises and Heavy Load Carriers) and Railways], Construction (Residential,
Commercial and Industrial), Power Generation, Mining, Food Industry and Others.
By Geography: North
America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Denmark, Belgium and the Rest of Europe), Asia-Pacific (China,
Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan,
Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile
and the Rest of South America) and the Rest of the World [the Middle East (Saudi Arabia, the UAE,
Israel and the Rest of Middle East) and Africa (South Africa, Nigeria and the Rest of
Africa)].
Key Takeaways
- Truck segment held a significant share in the Small-Scale LNG Market in 2021, owing to the range of benefits that it offers over other modes of supply available for LNG.
- Transportation industry held the largest share in the Small-Scale LNG Market in 2021, owing to the increasing demand for small-scale LNG from the automotive and marine sectors across the world.
- Asia-Pacific dominated the Small-Scale LNG Market in 2021, owing to its increasing demand from the transportation sector in the region. LNG is a cleaner and more efficient source of fuel that is relatively economical, which makes it ideal for use as a transportation fuel.
- A detailed analysis of strengths, weaknesses, opportunities and threats would be provided in the Small-Scale LNG Market Report.
Small-Scale LNG Market Segment Analysis – by Mode of Supply
The truck
segment held a significant Small-Scale LNG Market share of over 20% in 2021, owing to the range of benefits that it
offers over other types of modes of supply available for LNG. For instance, the
transportation and supply of LNG (liquefied natural gas) through trucks offer a range of
benefits such as reduced refueling time, more efficient scheduling and reduced
downtime as compared to transshipment & bunkering, rail and other modes of
supply. The
supply of LNG through trucks can cover large and variable areas and it is the
most ideal and feasible solution in areas that do not have access to ports for
transshipment & bunkering or railways and pipelines. For instance, in January
2021, Shell Energy launched its small-scale LNG supply infrastructure, a truck
loading unit at its LNG terminal in Hazira, India. The main motive of this
launch was to expand the supply of LNG via trucks across India in order to
enhance consumer access to cleaner energy. All of the above-mentioned benefits
of truck supply are driving its demand over other modes of supply for LNG,
which in turn, is expected to boost the market growth
during the forecast period.
Small-Scale LNG Market Segment Analysis – by End-use Industry
The transportation industry held the largest Small-Scale LNG Market share of over 25% in 2021, owing to the increasing demand for LNG-powered vehicles and ships across the world. LNG-powered vehicles operate on lower operational costs and are eco-friendly in nature as they do not emit harmful emissions as compared to petrol or diesel-powered vehicles, which in turn, is driving its demand in the automotive and marine sector. According to the Natural & Bio Gas Vehicle Association (NGVA Europe), more than 3,189 LNG-powered buses and over 6,802 LNG trucks were registered across Europe in 2020. It further states that around 688 new LNG-powered trucks were registered in Poland in 2021. Moreover, Denmark-based Celsius Tankers had placed orders for the construction of four liquefied natural gas (LNG)-powered marine carriers with Samsung Heavy Industries (SHI), based in South Korea. The new ships are scheduled for delivery between 2023 and 2024. Thus, such surging demand for LNG-powered vehicles and ships is expected to increase the demand for Small-scale LNG as a primary source of automotive or marine fuel to operate such vehicles and ships. This is expected to expand the Small-Scale LNG Market size during the forecast period.
Small-Scale LNG Market Segment Analysis – by Geography
Asia-Pacific held a dominant Small-Scale LNG Market share of over 46% in the year 2021. The consumption of small-scale LNG is particularly high in this region due to its increasing demand from the transportation sector in the region. In January 2022, China State Shipbuilding Corporation Hudong-Zhonghua and China Shipbuilding Trading signed a contract worth U$1.1 billion with Japan-based Mitsui O.S.K. CNOOC Gas & Power Group for the development of six large LNG-powered marine carriers. Also, more than 116.5 thousand LNG-powered trucks were registered in China in 2020. In 2021, NYK (Nippon Yusen Kabushiki Kaisha) Group, headquartered in Japan, invested around U$1.8 billion to build 12 LNG-fueled pure car & truck carriers, owing to the increasing cost of fuel and consumer preference for LNG-powered vehicles. They are scheduled to be delivered by 2024. This is expected to accelerate market growth during the forecast period.
Small-Scale LNG Market Drivers
Surging developments associated with LNG-fueled marine ships and carriers:
Small-scale
LNG (liquefied natural gas) is primarily used in the marine sector as a primary
source of marine fuel required for operating LNG-powered ships and carriers. In May
2022, Mitsui O.S.K. Lines, a Japanese shipping company, signed an agreement with
Nihon Shipyard Co., Ltd. and Shin
Kurushima Dockyard Co., Ltd. for the construction of four LNG-fueled marine
carriers. These ships are scheduled to be built and delivered by 2025.
Moreover, the MOL (Mitsui O.S.K. Lines) Group announced its plan to launch
about 90 LNG-fueled marine vessels by 2030 as a part of its strategy for the adoption
of cleaner alternative fuels. Hence,
such increasing developments associated with LNG-fueled marine ships and
carriers are expected to increase the demand for Small-scale LNG for operating such
LNG-powered ships and carriers. This is anticipated to drive the growth of the
market in the upcoming years.
Increasing developments related to LNG-fueled rails:
Small-scale liquefied natural gas (LNG) is
mainly utilized in the railway industry to operate LNG-powered trains. In 2021, Operail, a
railway company, launched its first LNG-fueled rail in Estonia, Europe. In
September 2019, Sinara Group signed a contract with Gazpromtrans
for the construction of 24 LNG-powered rails. The development of the new
LNG-fueled rails commenced in 2019 and is scheduled for delivery by 2024. Furthermore,
in February 2022, the Railway Ministry of Bangladesh announced its
plans to convert Bangladesh’s diesel fuel-based railway locomotives into
bio-fuels-powered railways including LNG, CNG and LPG, with the aid of UK-based
manufacturing firm G-volution Ltd. Thus, such increasing
developments associated with LNG-fueled rails are expected to increase the
demand for small-scale LNG to operate such rails. This is expected to propel
the growth of the Small-Scale LNG Market in the upcoming years.
Small-Scale LNG Market Challenge
Limitations associated with the use of LNG:
The use of LNG in the transportation sector
has numerous limitations which include the requirement of extremely low
temperatures (around -162°C). Thus, it requires special materials for its
storage as most materials become brittle and lose strength. Moreover, the use
of LNG requires more storage space of up to 150% as compared to fuel oil
storage space along with a strict separation of gas and air. Also, the use
of LNG is often associated with the dangers of leaks and the risk of
asphyxiation as LNG is an odorless and colorless gas, which makes it very
difficult to detect it in cases of leaks. In addition to this, LNG-powered
vehicles, ships, carriers or locomotives are relatively more expensive than
their petrol- or diesel-powered counterparts. Thus, such limiting factors associated
with the use of LNG may confine the growth of the Small-scale
LNG industry during the forecast period.
Small-Scale LNG Industry Outlook
Technology launches, acquisitions and increased R&D activities are
key strategies adopted by players in the Small-Scale LNG Market. The top 10 companies in the Small-Scale LNG Market are:
- Shell PLC
- Linde Group
- PJSC Gazprom
- Engie SA
- Wartsila Oyj ABP
- Honeywell International Inc.
- Skangas AS
- IHI Corporation
- Excelerate Energy L.P
- Prometheus Energy
Recent Developments
- In March 2022, Avenir LNG Limited acquired HIGAS Srl, an Italy-based company that owns and operates Small-scale LNG terminals. The main motive of this acquisition was to strengthen the company’s position in the European market.
- In January 2021, Shell Energy launched its Small-scale LNG supply infrastructure, a truck loading unit at its LNG terminal in Hazira, India. The main objective of this launch was to expand the supply of LNG via trucks across India in order to enhance consumer access to cleaner energy.
- In August 2020, Novatek launched its Small-scale LNG plant in the Chelyabinsk region. The plant has an overall capacity of 40 thousand tons per annum. The LNG produced would be primarily used in passenger, cargo transport and mining equipment in the Chelyabinsk region along with its neighboring areas.
Relevant Reports
Report Code: EPR 0011
Industrial Gases Market – Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: CMR 0291
For more Chemicals and Materials Market reports, please click here
LIST OF TABLES
1.Global Small-Scale LNG Market By Type Market 2023-2030 ($M)1.1 Liquefaction Terminal Market 2023-2030 ($M) - Global Industry Research
1.2 Regasification Terminal Market 2023-2030 ($M) - Global Industry Research
2.Global Small-Scale LNG Market By Type Market 2023-2030 (Volume/Units)
2.1 Liquefaction Terminal Market 2023-2030 (Volume/Units) - Global Industry Research
2.2 Regasification Terminal Market 2023-2030 (Volume/Units) - Global Industry Research
3.North America Small-Scale LNG Market By Type Market 2023-2030 ($M)
3.1 Liquefaction Terminal Market 2023-2030 ($M) - Regional Industry Research
3.2 Regasification Terminal Market 2023-2030 ($M) - Regional Industry Research
4.South America Small-Scale LNG Market By Type Market 2023-2030 ($M)
4.1 Liquefaction Terminal Market 2023-2030 ($M) - Regional Industry Research
4.2 Regasification Terminal Market 2023-2030 ($M) - Regional Industry Research
5.Europe Small-Scale LNG Market By Type Market 2023-2030 ($M)
5.1 Liquefaction Terminal Market 2023-2030 ($M) - Regional Industry Research
5.2 Regasification Terminal Market 2023-2030 ($M) - Regional Industry Research
6.APAC Small-Scale LNG Market By Type Market 2023-2030 ($M)
6.1 Liquefaction Terminal Market 2023-2030 ($M) - Regional Industry Research
6.2 Regasification Terminal Market 2023-2030 ($M) - Regional Industry Research
7.MENA Small-Scale LNG Market By Type Market 2023-2030 ($M)
7.1 Liquefaction Terminal Market 2023-2030 ($M) - Regional Industry Research
7.2 Regasification Terminal Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Small-scale Lng Market Revenue, 2023-2030 ($M)2.Canada Small-scale Lng Market Revenue, 2023-2030 ($M)
3.Mexico Small-scale Lng Market Revenue, 2023-2030 ($M)
4.Brazil Small-scale Lng Market Revenue, 2023-2030 ($M)
5.Argentina Small-scale Lng Market Revenue, 2023-2030 ($M)
6.Peru Small-scale Lng Market Revenue, 2023-2030 ($M)
7.Colombia Small-scale Lng Market Revenue, 2023-2030 ($M)
8.Chile Small-scale Lng Market Revenue, 2023-2030 ($M)
9.Rest of South America Small-scale Lng Market Revenue, 2023-2030 ($M)
10.UK Small-scale Lng Market Revenue, 2023-2030 ($M)
11.Germany Small-scale Lng Market Revenue, 2023-2030 ($M)
12.France Small-scale Lng Market Revenue, 2023-2030 ($M)
13.Italy Small-scale Lng Market Revenue, 2023-2030 ($M)
14.Spain Small-scale Lng Market Revenue, 2023-2030 ($M)
15.Rest of Europe Small-scale Lng Market Revenue, 2023-2030 ($M)
16.China Small-scale Lng Market Revenue, 2023-2030 ($M)
17.India Small-scale Lng Market Revenue, 2023-2030 ($M)
18.Japan Small-scale Lng Market Revenue, 2023-2030 ($M)
19.South Korea Small-scale Lng Market Revenue, 2023-2030 ($M)
20.South Africa Small-scale Lng Market Revenue, 2023-2030 ($M)
21.North America Small-scale Lng By Application
22.South America Small-scale Lng By Application
23.Europe Small-scale Lng By Application
24.APAC Small-scale Lng By Application
25.MENA Small-scale Lng By Application
26.The Linde Group, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Wartsila Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Honeywell International Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.General Electric, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Engie, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Gazprom, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Skangas, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Sofregaz, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Dresser-Rand, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Prometheus Energy, Sales /Revenue, 2015-2018 ($Mn/$Bn)