According to the recently published report “Global Small Scale LNG (SSLNG) Market - Forecast & Opportunities, 2012 - 2026”, the global market for small scale LNG is projected to surpass $ 50 billion by 2026. Liquefied Natural Gas (LNG) is natural gas, predominantly methane (CH4), that is converted to liquid form through a process called liquefaction. When liquefied, the volume of natural gas shrinks by 600 times, thereby allowing ease of storage or transport through ships and trucks. Increasing natural gas exploration & production activities, favorable government policies supporting the adoption of LNG and growing energy demand in remote areas are some of the major factors anticipated to boost the global small scale LNG market during forecast period.
Continuous fall in LNG production cost, shifting focus towards cleaner energy sources to reduce the harmful effects of carbon emissions coupled with reduction in natural gas flaring are expected to positively influence the global small scale LNG market over the next five years. Asia-Pacific dominated the global small scale LNG market in 2016, and the region is anticipated to maintain its dominance during the forecast period as well owing to continuing economic growth, high power deficits, new technological advancements and implementation of stringent emission norms, particularly in China.
By 2020, an average investment of USD230 billion will be required for upstream sector for exploration & production of gas across the world, which is projected to further increase to USD330 billion during 2020 – 2030 due to rising natural gas consumption. Increasing production and consumption of natural gas, growing demand for gas from power sector and expanding reach of City Gas Distribution (CGD) infrastructure across the world are anticipated to drive consumption in the global small scale LNG market in the coming years.
“Growing interest in the usage of natural gas and LNG not only reduces sulphur or particulate content, but it also aids in minimizing global warming. In addition, with sharp increase in marine trade as well as road transportation, increase in air pollution has become a cause of concern, especially over the last couple of decades. International Maritime Organization (IMO) is expected to cap global SOx emission down to 0.5% by either 2020 or 2025. All these factors are expected to boost LNG adoption in the coming years.”, said Mr. Karan Chechi, Research Director. This new study has evaluated the global small scale LNG market and provides the statistics and information on market structure, industry behavior and trends. The report includes market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes emerging trends along with essential drivers, challenges, and opportunities available in the global small scale LNG market.
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Source: ASDReports - Market Research
Date: Oct 10, 2017