Global Micro LNG Liquefaction Market: Introduction
- LNG (liquefied natural gas) is natural gas in its liquid form. When natural gas is cooled to −162°C (or −259°F) through a process known as liquefaction, it transforms into a clear, odorless liquid. This liquid takes up 600 times less space than natural gas and it offers ease in terms of storage and transport.
- However, small- and micro-scale LNG are gradually emerging as solutions to provide small volumes of gas to demand points that are located far away from supply infrastructure
- Mini/micro LNG facilities currently consist of LNG liquefaction plants supplying LNG satellite stations with annual LNG volumes of up to 0.2 MTPA. As an indication, these LNG quantities correspond to the yearly LNG demand for a power plant of up to 100 MW approximately.
Key Drivers and Restraints of Global Micro LNG Liquefaction Market
- A micro LNG liquefaction plant with the capacity of less than 0.2 MTPA can be constructed within 1–2 years, unlike large-scale LNG plants, which can take up to 10 years. Factors such as the ability to enjoy profits in a shorter time span and growing consumption of LNG as a primary source of energy are expected to drive the global micro LNG liquefaction market during the forecast period.
- In the last few years, the world has gradually shifted from heavier distillates toward cleaner burning fuel sources. This has made the role of natural gas in the global energy landscape more significant. According to Royal Dutch Shell PLC, by 2035, the demand for natural gas is expected to reach more than 4,500 BM^3/y, up from 3,600 Bm^3/y in 2018. This provides immense growth opportunities to the global micro LNG liquefaction market.
- However, reduction in prices of natural gas and high initial investments are major factors restraining the global micro LNG liquefaction market
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Truck Segment to Witness Attractive Opportunities
- The global micro LNG liquefaction market can be segmented in terms of mode of supply, application, and region
- In terms of mode of supply, the global market can be classified into truck and barge. The truck segment is expected to expand at the maximum CAGR during the forecast period.
- Based on application, the global micro LNG liquefaction market can be segmented into transportation, industrial feedstock, and others
North America to Hold a Major Share of Global Micro LNG Liquefaction Market
- Based on region, the global micro LNG liquefaction market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- North America dominated the global micro LNG liquefaction market in 2018 and the trend is estimated to continue during the forecast period. According to the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA), as of January 2018, there were more than 110 LNG facilities operating in the U.S., offering a variety of services including liquefaction, storage, transportation, and regasification.
- According to PHMSA, there are 160 LNG facilities built or approved in the U.S., with a majority of them being small- and micro-scale projects. PHMSA also reports that the volume of LNG storage capacity in the U.S. has rose to 55.7 million barrels in 2018 from 45.4 million barrels in 2010.
- The micro LNG liquefaction market in Asia Pacific is expected to expand at a significant CAGR during the forecast period. China, Japan, and Australia are major contributors, in terms of revenue, to the market in Asia Pacific.
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Key Players Operating in Global Micro LNG Liquefaction Market
The global micro LNG liquefaction market is highly concentrated, with the top manufacturers accounting for approximately 40%–45% of the market share. A few of the key players operating in the global micro LNG liquefaction market are:
- Snam S.p.A.
- Baker Hughes, a GE Company
Global Micro LNG Liquefaction Market: Major Developments
- In March 2018, a high-pressure micro-scale LNG plant was commissioned in the Northwest region of British Columbia, Canada. The plant produces 30,000 gal/d of LNG. The liquid is then trucked approximately 1,400 kilometers (870 mi) away into the Yukon Territory, where it is used as a substitute for diesel in various industrial applications.
- In May 2018, Snam S.p.A. and Baker Hughes, a GE Company signed an agreement to develop micro-liquefaction infrastructure to boost sustainable mobility in heavy-duty trucks and promote sustainability in maritime transportation
Global Micro LNG Liquefaction Market: Research Scope
Global Micro LNG Liquefaction Market, by Mode of Supply
Global Micro LNG Liquefaction Market, by Application
- Industrial Feedstock
Global Micro LNG Liquefaction Market, by Region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
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