Liquefied Natural Gas Market (LNG Market) size was reached USD 121.0 billion in 2022 and is slated to register a double digit CAGR of 6.1% over the period 2023-2030 and is projected to reach USD 194.3 billion in 2030.
LNG Trends and Drivers
Major factors driving LNG market includes the increasing demand for natural gas across various end-use industries along with the rising need for clean source of energy across the globe. Rapid growth in pipeline infrastructures, fluctuations in the oil prices and favourable government regulations is paving the way for LNG market in near future. Moreover, expansion in oil and gas industry along with the increased industrial activities is supporting the growth of natural gas for power generation and transportation fuel, will boost the market growth. Growing preference for clean energy over conventional and polluting energy sources like coal and oil. Increase in energy consumption will create more demand for liquified natural gas across several countries like China, will further bolster the global LNG market. For instance, natural gas consumption is increased by 21% approx. 4,037.5 billion cubic meters in 2021 as compared to 2020.
Based on Application, Power Generation segment is expected to hold largest market share.
Power generation and transportation application is expected to grow because of reduction in the prices and fuel switching cost is low is enhancing the market growth. Factors such as increasing population, rapid urbanization and increasing concern regarding the minimizing environmental degradation is driving the Power Generation segment. Increased usage of LNG fuel across various sectors like industrial, power generation and mining will boost the demand across the globe. In addition, increasing demand for natural gas as it helps to reduce the emission of harmful greenhouse gas emission. Increasing preference towards cleaner energy sources for power generation, will further propel the market growth. On the other hand, transportation segment is expected to grow at the fastest rate during the forecast period owing to the increasing demand for LNG in automotive sector across the Europe region.
Based on Region, Asia-Pacific region is projected to grow at fastest rate in the LNG market.
Asia-Pacific LNG market is driven by the increasing demand of LNG across the nations such as South Asia, China and ASEAN. Moreover, China is the largest LNG importer across the Asia-Pacific region. Rapid infrastructural development along with the economic expansion will increase the energy demand, results in the boosting the market growth in upcoming years. For instance, China expected to witness higher LNG imports reaching 126 bcm from 2018 to 2035 whereas Japan projected to reach almost 32 bcm during 2018 to 2035.
Top Market Players
Some of the major companies operating in the LNG market are 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.
• In 2021, ExxonMobil signed an partnership agreement of 25:75 with QatarEnergy for expansion of LNG production from 77 Mn tons to 110 Mn tons by 2026. Companies planned to expand north field east project.
• In 2022, Equinor signed an long term agreement with Cheniere to add new volumes in their product portfolio to expand its LNG and pipeline business. Through this partnership, the company planned to cater the increasing demand for energy worldwide.
• In 2021, Fluxys LNG joined hands with FID to build 6 MTPA of extra regasification capacity at the Zeebrugge LNG terminal.
• In 2021, Ghana planned to open first liquefied natural gas-to-power plant in sub-Saharan Africa.
Segmentation by Application
o Power Generation
o Mining & Industrial
Segmentation by Region
• Asia Pacific
o Rest of APAC
• North America
o United States of America
o United Kingdom
o Rest of Europe
o South Africa
o Saudi Arabia
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