The global liquefied natural gas market demand was 370.06 million in 2020 and is expected to grow at USD 550.6 million by 2027 at a compound annual growth rate (CAGR) of 5.9% from 2021 to 2027. Rapid growth in pipeline infrastructures with favorable government regulations, rising demand for natural gas (NG) from downstream industries, and fluctuation in oil prices are some of the major factors fueling the industry growth. Growing focus on the expansion of adequate support for infrastructure across the developing as well as developed nations is estimated to propel the liquefied natural gas (LNG) demand over the forecast period. However, inadequate pipeline infrastructure in remote locations is likely to hinder the market growth. Growing industrialization and urbanization, along with a growing number of power-related projects, such as petrochemicals and city gas distribution (CGD), are expected to subsidize expressively towards the market growth in the upcoming years.
New infrastructure and production projects are expected to come online within growth trends that are obviously below earlier LNG prospects, supporting the prospects of low prices and overcapacity. This casts a tracker over future finances, which will be needed in the long-term basis to guarantee the renewal of production and security of supply throughout the region.
Based on the application type, the market is segregated as a transportation fuel, power generation, and others. The power generation application segment accounted for the largest volume share of 47.1% in 2020. The growth of the transportation fuel segment is ascribed to the growing use of liquefied natural gas as fuel in vehicles across European countries and China. The liquefied natural gas fuel vehicle system carries NG to the engine at a required supply pressure while maximizing the fuel density of the fueling and tanks stations. These aspects are expected to fuel demand during the projected period.
As liquefied natural gas continues to play a vibrant role in the power generation, mining, and industrial sectors with NG usage as a vital feedstock for generating power across various industries, an enormous impact on switching fuel to liquefied natural gas fuel is expected to affect the emissions produced by the transportation sector.
The Asia Pacific region accounted for the largest revenue share of 41.3% in 2020. Australia is one of the global exporters of liquefied natural gas, with major projects in Queensland and Western Australia. Moreover, at times, these projects have faced planning pressure and significant cost, making them a challenge for the operators and developers owing to the drastic decrease in LNG prices.
Increasing demand from nuclear plants in Eastern Asia is likely to impact the energy mix of South Korea and Japan. India is expected to remain an attractive location for the exporters and manufacturers owing to the upsurge in the infrastructure development. Approximately over 30% of new LNG supply capacity is under construction and is expected to come online by 2025.
The European Union has increased its dependence on gas imports and with producers in the U.S., is pursuing an overseas market for LNG and pipeline infrastructure. Russia is one of the major exporters and a dominant player of the LNG market as one of its companies is capable of exporting fuel from its remote locations to other countries using pipeline infrastructure and other means of transportation.
Key players are Total, Chevron Corporation, Exxon Mobil Corporation, Petronet LNG Limited, China National Petroleum Corporation, Petroliam NasionalBerhad (PETRONAS), Snam SPA, PetroChina Company Limited, Royal Dutch Shell, BP, Equinor ASA, Gazprom, China Petroleum & Chemical Corporation, EniSpA, ConocoPhillips Company.
Report : Liquefied Natural Gas Market - By Technology (Wind Turbine, Solar Photovoltaic, Reciprocating Engines, Others) By Applications (Transportation Fuel, Power Generation, Others) By Region (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa) - Industry Analysis, Opportunity and Forecast 2020 To 2027