LNG is gradually emerging as one of the most preferred fuels globally and is being used by numerous end-user industries. One of the major advantages of utilizing LNG as a fuel is its clean burning nature which significantly lowers emissions as compared to other fossil fuels. However, one of the major constraints of utilizing natural gas as a fuel is its efficient transportation from supply to demand centers. Currently, there is a distinct mismatch in the global natural gas scenario, with major producers exporting a bulk of their production and major consumers being heavily reliant on imports. In such a scenario, there is a rising need for LNG infrastructure across the world since transporting natural gas in liquefied form is often cheaper and most cost effective than constructing pipelines. Although large scale LNG terminals have been preferably constructed across the world till date, the emergence of small demand centers for natural gas within small geographies is gradually shifting the focus towards miniaturizing LNG infrastructure.
The two primary forms of LNG infrastructure are liquefaction terminals and regasification terminals. By a thumb rule, exporters of natural gas in the form of LNG generally require liquefaction infrastructure while importers require regasification infrastructure. With technological advancements, divergence of such liquefaction and regasification terminals on the basis of type has also been observed. Both these terminals can currently be located in both onshore as well as offshore areas. The market for offshore LNG infrastructure is mostly comprised of small scale vessels such as FSRUs and FSLUs. With rapidly growing LNG consumption, the logistical constraints of transporting natural gas from regasification terminals located at ports to distant inland demand centers are increasing rapidly. In numerous cases, it is also highly infeasible to construct inland pipelines for transporting natural gas. In such cases, small scale LNG terminals are expected to be the most preferred form of infrastructure that would be installed in order to increase the volume of natural gas consumption.
For this report, only terminals with tank sizes lesser than 200,000 cubic meters and throughputs lower than 300,000 tons per annum have been considered. The demand for small scale LNG terminals to be expected globally within the forecast period have been taken as a function of various factors such as natural gas production and consumption, presence of stranded gas assets, demand from the industrial and power generation sectors, and growth and emergence of small scale inland demand. The weightage of these factors was analyzed on a regional as well as country level in order to arrive at the possible capacity additions that can be expected in the small scale LNG market within the forecast period. According to our analysis, a strong growth would be observed in the small scale LNG liquefaction terminals market over the forecast period. With the LNG bunkering and surface transportation industries driving capacity additions for small scale liquefaction terminals, year-on-year capacity additions are likely to increase steadily until 2022.
Regionally, Europe and Asia Pacific are likely to emerge as attractive markets for small scale LNG terminals within the forecast period. Countries such as China and Norway already have significantly developed small scale LNG infrastructure. Adoption of LNG as a fuel, especially by the heavy duty vehicles segment is expected to be a major driver for small scale LNG terminal construction across numerous geographies within the forecast period. Highly environment-conscious Europe and North America are expected to lead in the global market for small scale LNG terminals that are to be utilized for LNG bunkering in the future. Numerous attractive business models by market incumbents are expected to be introduced in the future. The small scale LNG market might witness numerous M&A activities in the future with technological expertise and project management competence being critical USPs for market incumbents. Other market niches such as converting fossil fuel users to LNG fuel and natural gas powered drilling are also likely to generate strong demand for small scale LNG infrastructure within the forecast period.
This research study analyzes the market for small-scale LNG terminals in terms of annual throughput. The small-scale LNG terminals market has been segmented on the basis of terminal technology, sub-type, and geography. For conducting the research, 2013 has been taken as the base year while all forecasts have been given for the 2014–2022 period. Market data for all the segments has been provided at the regional as well as country-specific level for the 2013–2022 period. The regional segment has been further divided into 14 sub-segments comprising nine unique countries which are major players in the global small-scale LNG market. The report provides a comprehensive competitive landscape and features companies engaged in the small-scale LNG terminals business. This report includes the key market dynamics affecting the overall small-scale LNG industry as well as the construction of such terminals globally. The report also provides a detailed industry analysis of the global small-scale LNG terminals market with the help of the Porter’s Five Forces model. The Porter’s Five Forces analysis aids in understanding the five major forces that affect the industry structure and profitability of the global small-scale LNG terminals market. The forces analyzed are the bargaining power of buyers, bargaining power of suppliers, threat from new entrants, threat from substitutes, and degree of competition.
The high-level analysis in the report provides detailed insights into the small-scale LNG terminals business globally. Major drivers, restraints, and opportunities of the small-scale LNG terminal market were analyzed in detail and are illustrated in the report with the help of supporting graphs and tables. There are currently numerous drivers for the small-scale LNG terminals industry. One of the most prominent drivers is the security of gas supply in small demand centers & accelerated development of smaller gas fields. Apart from this, slumping energy prices and a growing interest towards utilizing natural gas as a clean fuel are attracting higher investments in small-scale LNG terminals as compared to megaprojects. Market attractiveness analysis was carried out for the small-scale LNG terminals market on the basis of geography. Market attractiveness was estimated on the basis of common parameters that directly impact the market in different regions.
The small-scale LNG terminals market was further segmented on the basis of terminal type into regasification and liquefaction terminals. For this report, only the terminals with tank sizes lesser than 200,000 cubic meters and throughputs lower than 300,000 tons per annum have been considered. Both liquefaction and regasification terminals have also been further sub-segmented on the basis of type into onshore terminals and offshore terminals. The small-scale LNG terminals market was analyzed across five geographies: North America, Europe, Asia Pacific, South America, and Middle East & Africa. Regional data has been provided for each sub-segment of the small-scale LNG terminal market. Key market participants in the small-scale LNG terminal market include Skangass AS, Prometheus Energy, Linde AG, and Plum Energy. The report provides an overview of these companies, followed by their financial details, business strategy, and recent developments.
LNG Terminal Market: Type Analysis
- Liquefaction Terminals, by type
- Regasification Terminals, by type
LNG Terminal Market: Regional Analysis
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East Africa
- Rest of Middle East and Africa