Introduction to Liquefied Natural Gas (LNG) Infrastructure
Liquefied Natural Gas or LNG is referred to the liquid form of natural gas which has a predominant chemical composition of methane (CH4) and some mixture of ethane (C2H6). LNG is formed by cooling the natural gas. This is done for ease and safety of non-pressurized storage and transport of the natural gas. Liquid natural gas or LNG is colorless, odorless, non-toxic and non-corrosive in nature. A typical life cycle of the LNG includes pre-treatment of natural gas which is done to remove the impurities present, such as H2S, CO2, H2O and others. It is followed by the liquefaction process, which cools down the gas to its liquid form. This liquid form is then stored and transported further for delivery to end-users.
The development of basic physical and organizational structures for the production, operation, extraction and transportation of LNG is referred to the LNG infrastructure.
Market Size and Forecast
The global liquefied natural gas or LNG infrastructure market is thriving on the back of growing demand for clean fuel energy around the world coupled with the rising production of LNG and the need for the distribution of LNG as an energy source to end users around the globe. According to the International Energy Agency (IEA), total production of natural gas around the world increased from 126194778 Tera Joule (TJ) in the year 2010 to 147137783 Tera Joule (TJ) in the year 2017.
The global LNG infrastructure market is anticipated to record a CAGR of around 5.5% throughout the forecast period, i.e. 2020-2028. The market is segmented by terminal type into liquefaction and regasification, out of which, regasification terminal segment is anticipated to hold the largest market share on the back of increasing regasification capacity around the world along with the addition of several new regasification capacities, which are under construction, to meet the growing demand of LNG across end users. Moreover, development of several floating regasification projects around the globe are also anticipated to contribute towards the growth of the segment in the global LNG infrastructure market. According to the International Gas Union (IGU), global regasification capacity including the floating regasification terminals increased to 824 MTPA by February 2019. CLICK TO DOWNLOAD SAMPLE REPORT
Growth Drivers
Growing Trade of LNG As An Energy Source
According to the International Energy Agency (IEA) imports of natural gas around the world increased from 38382048 TJ in the year 2010 to 45875233 TJ in the year 2017.
The trade for natural gas around the world has expanded rapidly over the years owing to the demand for natural gas from several nations around the globe along with the presence of several natural gas resources in countries globally. Demand for natural gas in several nations has raised the need for investments from LNG infrastructure companies to provide rapid and flexible import solutions, for instance floating storage and regasification units. Transformation in the demand for natural gas from local to regional and global markets, coupled with increasing competition and diversity among the suppliers and customers, and the investment decisions taken by companies during the previous decade is contributing towards the increasing trade for LNG around the globe, which is anticipated to drive the growth of the global LNG infrastructure market in the upcoming years.
Growing Number of LNG Projects Under Construction and Planned Start Up
According to other statistics by the IEA, as of Q3 2018, more than seventeen new LNG projects are planned and are under construction around the world.
Several LNG producing companies around the world are increasingly investing on numerous new LNG projects which are under construction and are planned to come up in the near future. The increasing investments can be attributed to the lower initial investment costs and shorter installation periods required for the setting up floating storage and regasification units (FSRUs). As such, to meet the rising demand for LNG as an energy source, companies are increasingly investing to develop new plants for the production of LNG. Such a factor is anticipated to drive the growth of the global LNG infrastructure market.
Restraints
Rising Demand for Alternative Source of Energy
Several nations around the globe are opting for alternative energy sources, such as nuclear energy as well as renewable energy sources, such as solar, wind and others. Additionally, high cost of equipment is also anticipated to hamper the growth of the global LNG infrastructure market throughout the forecast period.
Market Segmentation
Our in-depth analysis of the global LNG infrastructure market includes the following segments:
By Terminal Type
- Liquefaction
- Regasification
By Application
- Heavy-duty Vehicles
- Electric Power Generation
- Marine Transport
- Others
By Region
On the basis of regional analysis, the global LNG infrastructure market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia Pacific is anticipated to hold the largest market share on the back of rising demand for LNG as an energy source from nations such as China, Japan, Korea, India and others, for the ambition of the nations to improve the air quality as well as to promote a clean and green environment.
The global LNG infrastructure market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
- Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis.
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis
Top Featured Companies Dominating the Market
- Occidental Petroleum Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Inpex Corporation
- Gazprom
- Rosneft
- Novatek
- Cheniere Energy, Inc.
- Woodside Petroleum Ltd.
- Petroliam Nasional Berhad (PETRONAS)
- National Iranian Oil Company
- Chevron Corporation
