Small-Scale LNG Global Market Report 2024

The global small-scale lng market has grown strongly in recent years. It will grow from $17.35 billion in 2023 to $18.94 billion in 2024 at a compound annual growth rate (CAGR) of 9.1%. The historic growth in small-scale LNG can be attributed to the diversification of energy demands, stringent environmental regulations, the abundance of natural gas resources, adoption of energy solutions for remote areas, and the transitioning of transportation fuels.

The global small-scale lng market is expected to see strong growth in the next few years. It will grow to $25.99 billion in 2028 at a compound annual growth rate (CAGR) of 8.2%. The forecasted growth in small-scale LNG is expected to arise from factors such as public acceptance, flexibility, competitive pricing, shifts in global energy trade, diversification in industrial usage, and increasing energy demands. Major trends in this period encompass a focus on energy transition, heightened environmental awareness, availability of natural gas, solutions for energy needs in remote areas, and transformations within the transportation industry.

The growth of the small-scale LNG market is anticipated to be propelled by an increasing preference for greener and cleaner fuel options. Green fuels, derived from biomass through various biological and thermochemical processes, are gaining prominence due to environmental concerns and the depletion of natural resources. This shift towards cleaner fuel options is expected to boost the demand for small-scale LNG, known for emitting 40% less carbon dioxide (CO2) than coal and 30% less than oil, making it the cleanest among fossil fuels. Additionally, small-scale LNG does not produce soot, dust, or particulates. The International Energy Agency (IEA) reported in 2021 that the global demand for biofuels is projected to grow by 41 billion liters or 28% from 2021 to 2026, highlighting the increasing inclination towards greener and cleaner fuel options.

The growing demand for natural gas is poised to drive the expansion of the small-scale LNG market. Natural gas, primarily composed of methane, serves as a crucial energy source for heating, electricity generation, and vehicle fuel. Small-scale LNG is transforming local natural gas commerce by offering flexibility, environmental advantages, and enhanced energy security. According to the International Energy Agency (IEA) in July 2022, global demand for gas is expected to rise by 140 billion cubic meters (BCM) from 2021 to 2025, underscoring the significant role of natural gas in the energy landscape and its impact on the growth of the small-scale LNG market.

In response to the increasing demand for sustainable solutions, major companies in the small-scale LNG market are introducing innovative vessels, such as small-scale LNG bunkering vessels. These vessels are designed to provide liquefied natural gas (LNG) bunkering services on a smaller scale, particularly for refueling ships. For instance, in 2023, Axpo, a Switzerland-based renewable energy specialist, launched a small-scale LNG bunkering vessel. With a potential capacity of 7,500 cubic meters, the vessel is set to be constructed at the San Giorgio shipyard in Piombino, Italy. The vessel is expected to facilitate ship-to-ship and ship-to-truck services off the coast of Naples, enabling the transfer of LNG to onshore tanker trucks for distribution. This initiative aligns with the maritime industry's pursuit of cleaner and more sustainable energy sources, with the vessel possibly accommodating the transport of bio-LNG and ammonia in the future.

Major players in the small-scale LNG market are introducing new loading services, such as small-scale LNG carrier loading services, to address the escalating demand for LNG bunkering. This service involves offering facilities and infrastructure for loading liquefied natural gas (LNG) onto smaller vessels, catering to the rising market of LNG-powered carriers, including containerships, ferries, and cruise liners. An example of this initiative is evident in the actions of Elengy, a France-based company specializing in the LNG sector. In November 2023, Elengy launched a small-scale LNG loading service, specifically at the Fos Tonkin terminal. The terminal, now equipped for smaller vessels, provides 18 loading slots annually for small-scale LNG carriers with capacities of up to 40,000 cubic meters. This strategic move aligns with the broader goal of contributing to the decarbonization of maritime transport by meeting the growing demand for LNG bunkering.

In a significant development in July 2021, Kinder Morgan, a prominent US-based energy company, acquired Kinetrex for a notable sum of $310 million. This acquisition reflects Kinder Morgan's strategic intent to expand its portfolio in the small-scale LNG and renewable natural gas (RNG) sectors, capitalizing on the increasing demand for cleaner energy solutions. Kinetrex, the acquired company, is a US-based small-scale LNG producer, making the acquisition a strategic move to enhance Kinder Morgan's presence and capabilities in the evolving landscape of cleaner energy solutions.

Major companies operating in the small-scale lng market report are Linde PLC, Wärtsilä Oyj Abp, Honeywell International Inc., General Electric Company, Engie SA, SOFREGAZ SAS, Plum Energy LLC, Excelerate Energy Inc., Cryostar SAS, IHI Corporation, PAO NOVATEK, Gasum Ltd., Siemens Energy AG, Chart Industries Inc., Air Products & Chemicals Inc., PJSC Gazprom, Prometheus Energy s.r.o., TotalEnergies SE, Shell PLC, Black & Veatch Holding Company, Anthony Veder Group NV, Eni SpA, Baker Hughes Company, Evergas AS, Stabilis Solutions Inc., Chevron Corporation, Emerson Electric Co., ABB limited, Halliburton Company, Schlumberger NV

Asia-Pacific was the largest region in the small-scale LNG market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the small-scale lng market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the small-scale lng market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of small-scale LNG operations encompass liquefaction and regasification. Liquefaction terminals are responsible for receiving, storing, conditioning, and distributing LNG to consumers. These terminals convert natural gas into a liquid state, enabling its transportation through pipelines. Liquefaction terminals play a crucial role in the overall supply chain of liquefied natural gas (LNG). Small-scale LNG is distributed through various modes like truck, rail, transshipment, and bunkering, and consumed in industrial, transportation, utilities, and marine applications, including captive consumption through pipelines.

This report provides small-scale LNG market statistics, including small-scale LNG industry global market size, regional shares, competitors with a small-scale LNG market share, detailed small-scale LNG market segments, market trends and opportunities, and any further data you may need to thrive in the small-scale LNG industry. This small-scale LNG market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The small-scale LNG market consists of revenues earned by entities by providing small-scale LNG services that are used to manage small quantities of LNG used in sectors such as road, and maritime. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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