Liquefied Natural Gas (LNG) is natural gas (predominantly methane, CH4) that has been converted to liquid form for ease of storage or transport. It takes up about 1/600th the volume of natural gas in the gaseous state. LNG is odorless, colorless, non-toxic and non-corrosive.
The global Liquefied Natural Gas Market is estimated to be valued at US$ 8.8 Bn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the LNG market is the increasing demand from the power generation and transportation sectors. In the power sector, LNG is increasingly being used in gas-fired power plants as a cleaner alternative to coal and oil. This is driving the demand for LNG globally. In the transportation sector, LNG is gaining traction as a marine and heavy-duty vehicle fuel. Countries are promoting use of LNG trucks and ships to reduce emissions. This shift towards greener fuels is a major trend in the LNG market. Infrastructure build-out for LNG refueling stations for vehicles and supply chains for marine bunkering are helping drive the adoption of LNG in transportation.
SWOT Analysis
- Strength: The global liquefied natural gas market has strong growth prospects due to growing demand for cleaner energy sources. Countries are shifting from coal to natural gas as it causes lesser pollution.
- Weakness: Setting up liquefaction facilities is a capital intensive project which requires huge investments. Transporting LNG over long distances in specialized tankers is also an expensive affair.
- Opportunity: Many countries are aiming to import LNG to substitute liquid fuels and coal for power generation and transportation. The rising demand from Asia Pacific and European nations presents tremendous opportunities.
- Threats: Fluctuations in crude oil prices can impact the demand for LNG. Political instability or conflicts in major gas producing regions also pose threats to the supply security.
Key Takeaways
The global liquefied natural gas market is expected to witness high growth, exhibiting CAGR of 9.0% over the forecast period, due to increasing adoption of cleaner fuels for power generation and transportation. The market size for 2023 is US$ 8.8 Bn
Regional analysis:
Asia Pacific dominates the global liquefied natural gas market owing to strong demand from countries like China, Japan and India. These countries import significant volumes of LNG to meet their rising energy needs. Europe is another major regional market for LNG driven by need to substitute coal and oil with natural gas.
Key players: The key players operating in the Liquefied Natural Gas market are Asahi Kasei Corporation, Ascend Performance Materials, BASF SE, Invista, Lanxess Ag, PetroChina Liaoyang Petrochemical, Radici Group, Rhodia, Shandong Haili Chemical Industry Company Ltd., and Shandong Hongye Chemical Company, Ltd.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
