Liquefied Natural Gas Market Size, Share & Trends Analysis Report By Application (Transportation Fuel, Power Generation), By Region (North America, Europe, APAC, Central & South America, MEA), and Segment Forecasts, 2019 – 2029

Natural gas that has been refrigerated to a liquid condition at approx. -260° Fahrenheit for packaging and shipping is known as liquefied natural gas (LNG).

Covid-19 Impact & Market Status

COVID-19 began in Wuhan, China, in December 2019 and has swiftly expanded throughout the world since then. China, Italy, Iran, Spain, the Republic of Korea, France, Germany, and the United States have the largest number of significant cases and estimated deaths as of March 2020.  The COVID-19 epidemic has disrupted economies and enterprises in a number of nations due to lockdowns, travel bans, and corporate closures. The worldwide food and beverage industry is one of the key businesses experiencing significant disruptions as a result of the outbreak, including supply chain problems, technology event cancellations, and office closures. China is the world's industrial powerhouse, with and the primary raw material providers. Due to factory closures, supply chain obstacles, and the general market breakdown caused by COVID-19, the growth of the bacon market is being hampered.

At a compound annual growth rate of 7.91 %, the size of the worldwide Liquefied Natural Gas market is projected to reach USD 14.13 billion  in 2029.

The outbreak of COVID-19 has a significant impact on the global liquefied natural gas market. Leading authorities in many nations enforced countrywide lockdowns and severe regulations, resulting in a drop in Liquefied Natural Gas demand and sales in the first half of 2020. The coronavirus pandemic had a significant impact on power generation facilities. During the shutdown, transportation services came to a halt, resulting in zero natural gas shipments. The demand for LNG in end-use industries is projected to strengthen the global market in the future once the operation resumes.

COVID-19 has had a direct impact on this market, as well as an indirect impact from other industries, which we've been watching. In the final study, the impact of COVID-19 on this industry will be studied. Experts evaluated the pre- and post-COVID-19 consequences in a report on the global LNG as a Bunker Fuel market. The paper outlines the benefits and drawbacks of financial and market growth experienced throughout the crisis. Despite a severe economic downturn, the market for LNG as a Bunker Fuel has adopted new development techniques and talents in order to recover. To stay afloat on both regional and global platforms, the sector has begun seeking for new sources of capital and business models.

From 2021 to 2025, the Floating Liquefied Natural Gas Market industry will be shaped by post-pandemic changes in social, economic, trade, and political factors, as well as planned environmental regulatory reforms. The Floating Liquefied Natural Gas Market recorded mixed results for various applications and geographies during C0VID 19. The study identifies the pandemic's segment-specific ramifications and presents various case scenarios for the Floating Liquefied Natural Gas Market's growth prospects through 2028.

LNG as a shipping fuel is driving demand

The International Maritime Organization (IMO) has set a sulphur content cap of 0.50 percent m/m on ships' fuel oil, which is approximately 85 percent lower than the present cap. The cap will take effect on January 1, 2020. As a result of the tight rules enacted in response to climate change consulting, transport boats are being pushed to use LNG instead of oil. At the start of March 2018, there were more than 120 LNG-burning vessels in operation, with more than two-thirds of them based in Europe. Due to strict IMO requirements, the number of LNG-based vessels is likely to double in the near future, fuelling demand for LNG as a fuel.

To Dominate the Market, Develop a Transportation Application

The usage of LNG for transportation has increased significantly in recent years, and this trend is likely to continue in the forecast period. In China, there has been a considerable increase in LNG-powered heavy-duty trucks, with the goal of lowering greenhouse gas emissions. LNG trucks increased from 35,000 in 2012 to 235,000 in 2018, while LNG buses increased from 14,000 in 2012 to 122,000 in 2018. The EU has also been working to expand its LNG-based heavy-duty transportation infrastructure, which has grown by more than 250 percent between 2016 and 2018. As a result of the tight rules enacted in response to climate change, maritime boats are being pushed to use LNG in-place oil. At the start of March 2018, there were more than 120 LNG-burning vessels in operation, with more than two-thirds of them based in Europe.

LNG Has a Chance in the Power Market

In terms of electricity generation, coal-fired power plants have been the dominant player, but some economies are now turning to cleaner fuels like natural gas, solar, and wind. Countries such as Brazil, Pakistan, and Bangladesh, among others, have recently adopted or are in the process of constructing LNG-fired power plants that are scheduled to be operational over the forecast period. Bangladesh is building one of the world's largest LNG-based combined cycle power plants, with a capacity of 500-600 MW. Brazil began construction of two LNG-fired power plants with a combined capacity of 1.24 GW in 2016. The number of LNG-fired power plants is likely to rise dramatically as technology improves and liquefaction becomes more affordable.

The market will be dominated by Asia-Pacific

The Asia-Pacific region's LNG imports have exceeded expectations, with China acquiring three times the amount projected in 2018. The usage of LNG for power generation and transportation has increased dramatically in the region, with the goal of lowering greenhouse gas emissions. China's gas demand climbed from roughly 240 BCM in 2017 to around 280 BCM in 2018, with the industrial and transportation sectors driving much of the demand. China has led the LNG-based transportation sector with its massive fleet of LNG-powered buses and trucks. In 2018, China erected 2,552 LNG fuel stations and used 6.7 million metric tonnes of LNG in transportation. As a result of increased investment in LNG infrastructure development in the region, as well as a growing need for cleaner and cheaper energy generation and transportation, this region is predicted to rise during the projection period.

Natural gas can be transferred to areas where natural gas pipelines do not reach and used as a transportation fuel using this 19th-century liquefaction technology.

Planned LNG refers to the addition of regasification and liquefaction capacity at LNG terminals. The physical transformation of a gas into a liquid is known as liquefaction.

Production, liquefaction, and storage of LNG gas may now be done offshore, thanks to technological advancements. In comparison to floating regasification, which has quickly established itself on the market, floating liquefaction is a relatively young technology. However, one of the key impediments to the expected LNG market expansion is the LNG project's delay.

The majority of LNG plants were scheduled to begin operations in 2020, but the breakout of COVID-19 has caused a delay. Demand from a variety of end users, on the other hand, is expanding the LNG consumer base and creating profitable potential for the industry. The COVID-19 virus outbreak has had a detrimental influence on LNG consumption in Asia-Pacific in 2019. Furthermore, as the virus spreads, China's demand for LNG is expected to fall in 2020, and other nations' demand is expected to follow suit.

As liquefied natural gas continues to play a vital role in the power generation, mining, and industrial sectors, with NG serving as a vital feedstock for generating power across a wide range of industries, switching to liquefied natural gas fuel is expected to have a significant impact on the transportation sector's emissions.

The projected LNG market research will include detailed information on the leading players in the industry. Chevron Corporation, Royal Dutch Shell plc, Exxon Mobil Corporation, LNG Croatia LLC, Energy Transfer LP, Cheniere Energy, Inc., Freeport LNG, PETROBRAS, Sempra Energy, ConocoPhillips Company, Equinor ASA, Korea Gas Corporation, Venure Global LNG, and Gasum are some of the major players in the market. Tokyo Gas Co Ltd, Hitachi, Petronet LNG Ltd, Samsung, C&T Corporation, CTCI Resources Engineering Inc., and others are all part of the market's value chain. To stay competitive in the industry, prominent companies are employing a variety of methods such as partnership, company expansion, acquisition, partnership, collaboration, and agreement.

Latest Innovations in the LNG as Fuel Market: a Snapshot

• Since its introduction in the late 1960s, the market structure and trends for Asian liquefied natural gas (LNG) have changed considerably. While traditional markets such as Japan and Korea have maintained their position as the region's largest consumers, their domestic markets have changed as a result of liberalization policies, resulting in various stages of market opening. 
• Meanwhile, the advent of fast-growing LNG importers like the People's Republic of China has resulted in significant market expansion, which has been accompanied by increased supply diversification. Price formation has become more diversified in indexation as a result of this shift in contractual structure, with more cross-influences between regional markets.
• The transformation from local, bilateral trading flows to regional (and, increasingly, worldwide) markets for LNG is accelerating. While average LNG consumption in Asia-Pacific is anticipated to be concentrated, the trend of consuming regions diversifying will stay.
• While the Russian Federation continues to add additional liquefaction trains, Qatar is preparing to enhance its export capacity in order to maintain its advantage. Recent final investment choices in Canada, as well as offshore Mauritania and Senegal, add to the future supplier diversification.

Liquefied Natural Gas Market Scope

Key Segments of the LNG as Fuel Market

• By Technology

• Liquefaction
• Regasification
• By End-Use Industry
• Residential
• Commercial
• Industrial
• By Region
• North America
• U.S.
• Canada
• Mexico
• Europe
• Russia
• Croatia
• Cyprus
• Turkey
• Rest of Europe
• Asia-Pacific
• China
• Japan
• India
• Australia
• Indonesia
• Malaysia
• Thailand
• Bangladesh
• Philippines
• Vietnam
• Rest of Asia-Pacific
• LAMEA
• Brazil
• Argentina
• Bahrain
• Nigeria
• Jamaica
• Ghana
• Mozambique
• Mauritania
• Kuwait
• El Salvador
• Qatar
• Rest of LAMEA