Liquefied Natural Gas Market

Analysts at GMI Research estimates that the Liquefied Natural Gas Market (LNG Market) was worth USD 121.0 billion in 2022, and forecast to touch USD 194.3 billion in 2030, growing at a CAGR of 6.1% from 2023-2030.

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Key Drivers

Growing demand for natural gas in power generation office and expansion in pipeline infrastructures along with strategic government norms are the major factors propelling the Liquified Natural Gas market size. In addition, rapid industrialization and rising urban populations and the fluctuations in oil prices are likely to bolster the market growth over the upcoming years. The existence of a well-developed gas infrastructure, expansion in oil & gas industry and increasing industrial activities have bolstered the demand for natural gas for power generation and transportation fuel, driving the market growth. With the increasing energy consumption, the demand for liquified natural gas from several countries, such as China has increased, which is projected to bolster the market growth. As per the LNG Market report, increasing inclination from the conventional and polluting energy sources such as coal and oil towards clean energy has driven the market growth. Various technological advancements such as a significant reduction in the cost of components of the value chain of LNG enhanced design innovations, have bolstered the market growth. The growing emphasis on developing sustainable energy generation sources, will augment the market growth. As per the Information Administration, natural gas outperformed coal as the most common electricity generation source in the U.S. in 2016, because of the degradation of coal resources and negative environmental impact.

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Application Segment Analysis

Power Generation application is estimated to hold a larger share over the upcoming years, owing to the accelerating population, rapid urbanization, and growing concern for minimizing environmental degradation. Increasing application of LNG fuel across the mining, industrial and power generation sectors is another major factor fueling the market growth. A significant reduction in the prices, and a lower fuel switching costs, are projected to improve the industry growth across the transportation and power generation industry. The increasing inclination towards cleaner energy sources for power generation will further expand the market growth. For instance, as per the Mexico’s National Energy Ministry (SENER), more than 60% of Mexico’s electric capacity additions will come from natural gas-fired power plants till 2020.

On the other hand, the transportation fuel is estimated to witness a faster CAGR over the upcoming years. The growing use of LND as a fuel in automotive across the European nations and China has bolstered the market growth. LNG is cheaper than diesel, thus, reducing the running costs over medium to long distances as compared to conventional fuels. The strong environmental benefits which include improving air quality by reducing greenhouse gas emissions, will further expand the LNG market share.

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Regional Analysis

Asia-Pacific is predicted to witness a higher CAGR during the forecast period because of the increasing gas exports aided by the surging demand from various nations like China, South Asia and ASEAN. For instance, China is predicted to witness highest LNG imports from 2018 to 2035, reaching 126 bcm whereas, Japan will witness a lower growth due to reduction in LNG almost 32 bcm during 2018 to 2035. Moreover, the ongoing infrastructural development and economic expansion has bolstered the energy demand, propelling the market growth. Strong economic expansion across the country has augmented the consumption of gas-based power facilities, which will pave the way for market.

North America is forecast to witness a higher CAGR over the forecast period. The presence of shale gas reserves in US and rising government emphasis on introducing clean energy sources in the U.S. energy mix will add to the market growth. As per IEA, the U.S. LNG export capacity has increased from less than 1 billion cubic feet per day (Bcf/d) in 2016 to approximately 9 Bcf/d at the end of 2019. In 2019, U.S. LNG exports were more than 1,819 Bcf to 38 countries, and LNG exports gauged for 39% of total U.S. natural gas exports.

Top Market Players

Various notable players operating in the market include Exxon Mobil Corporation, Chevron Corporation, Total, Royal Dutch Shell PLC, PetroChina Company Limited, China Petrochemical Corporation, Equinor ASA, Canadian Natural, Gazprom, and BP p.l.c., among others.

Key Developments:

• • In 2022, ExxonMobil signed an agreement with QatarEnergy to expand LNG production to 110 Million tons by 2026 from 77 Millions tons. The companies planned to expand North Field East project with 75:25 partnership of QatarEnergy ​and ExxonMobil respectively.
    In 2022, Equinor signed 15 years long term agreement with Cheniere to cater to the growing energy demand across the globe. Through this agreement, Equinor will add new volumes in their portfolio in order to expand its pipeline and LNG business.
  • In 2021, Fluxys LNG and FID decided to build 6 MTPA of extra regasification capacity at the Zeebrugge LNG terminal. 4.7 MTPA will be be completed by 2024 and the remainder by 2026.
    In 2021, Ghana has decided to open sub-Saharan Africa’s first liquefied natural gas-to-power plant as it shifts to position itself as a hub for cleaner and cheaper fuel in the region.
  • In 2020, the Nigeria Liquified Natural Gas (NLNG) entered into an engineering, procurement, and construction (EPC) project for Train 7, the country’s crucial gas expansion project. The EPC contract was the consortium of Saipem, Chiyoda, and Daewoo (SCD), evaluated at USD 4 billion. The expansion project is anticipated to strengthen Nigeria’s LNG output by 30% upon its adoption in the next five years. The project is scheduled for commissioning by 2024.
  • In 2020, ExxonMobil India LNG Limited signed a Letter of Cooperation with Indian Oil Corporation Limited and Chart Industries, Inc. to develop a system of transportation infrastructure to increase its gas access in India. Virtual pipeline systems will provide liquefied natural gas by road, rail, and waterways to areas not connected by physical pipelines.
  • In 2020, AES Corp. entered into a deal with PetroVietnam Gas to launch a USD 2.8 billion liquefied natural gas (LNG) import terminal and a power plant in Vietnam. Vietnam has developed numerous LNG-to-power plants, with the first to be operational by 2023.
  • In 2019, liquefied natural gas facility on the Gulf Coast of Louisiana owned by a subsidiary of San Diego’s Sempra Energy has successfully developed a second unit that will soon export natural gas to markets across the globe.
  • In 2019, Exxon Mobil Corporation signed a sales and purchase agreement with the Zhejiang Provincial Energy Group for the supply of liquefied natural gas. In this agreement, the Zhejiang Provincial Energy Group will be provided 1 million metric tons per annum of LNG over 20 years. The company planned to meet the energy demand of China by its technologies, products, investments, and partnerships.
  • In 2019, PetroChina Company Limited entered into a Memorandum of Understanding with JERA Co., Inc., for the LNG business. In this MoU, the companies planned to develop new demand for LNG, optimization of LNG, and to expand their business opportunities.

Segments covered in the Report:

The global liquefied natural gas (LNG) market has been segmented on the basis of application and region. Based on the application, the market is segmented into transportation, power generation, mining & industrial, and others.

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Key questions answered in this research report:

• • At what pace is the global liquefied natural gas (LNG) market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in the global liquefied natural gas (LNG) market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global liquefied natural gas (LNG) market?
  • Which application generated maximum revenues in 2022 and identify the most promising application during the forecast period?
  • What are the various application areas of the liquefied natural gas (LNG) market, and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global Liquefied Natural Gas (LNG) Market by Application  

• • Transportation
  • Power Generation
  • Mining & Industrial
  • Others

Global Liquefied Natural Gas (LNG) Market by Region

• • North America Liquefied Natural Gas (LNG) Market (Option 1: As a part of the free 25% customization)
    • By Application
    • US Market All-Up
    • Canada Market All-Up
  • Europe Liquefied Natural Gas (LNG) Market (Option 2: As a part of the free 25% Customization)
    • By Application
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Liquefied Natural Gas (LNG) Market (Option 3: As a part of the free 25% Customization)
    • By Application
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Liquefied Natural Gas (LNG) Market (Option 4: As a part of the free 25% Customization)
    • By Application
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Liquefied Natural Gas (LNG) Leading Market Players (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Exxon Mobil Corporation
  • Chevron Corporation
  • Total
  • Royal Dutch Shell PLC
  • PetroChina Company Limited
  • China Petrochemical Corporation
  • Equinor ASA
  • Canadian Natural
  • Gazprom
  • BP p.l.c.