LNG Liquefaction Terminals Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 6.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
LNG Liquefaction Terminals Market Analysis
The global LNG liquefaction terminals market is expected to grow at a CAGR of more than 6% in the forecast period (2022-2027). During the Covid-19 pandemic, due to lockdown and cross-border restrictions, there were limitations on the movement of the workforce and the supply of goods & raw materials across the globe. Furthermore, the lockdown resulted in lower demand for LNG from its end user, as all facilities were shut down during the pandemic. Factors such as a significant rise in demand for natural gas are expected to drive the LNG liquefaction terminals market. However, the volatility in natural gas prices is expected to restrain the market during the forecast period.
- Significant demand for the rising demand for LNG in bunkering, road transportation, and off-grid power is expected to drive the LNG liquefaction terminals market.
- The rising investment in small-scale and mid-scale LNG liquefaction terminals is expected to present a significant opportunity for the LNG liquefaction terminals market during the forecast period. These small-scale and mid-scale LNG liquefaction terminals require significantly lower capital investment than mega LNG projects, resulting in higher investment in small-scale and mid-scale LNG liquefaction terminals.
- Middle-East and Africa dominates the liquefaction terminals market. Due to rising demand for the LGN worldwide, the investment in LNG liquefaction terminals has increased in the region.
LNG Liquefaction Terminals Market Trends
This section covers the major market trends shaping the LNG Liquefaction Terminals Market according to our research experts:
Rising the Demand for LNG in Bunkering, Road Transportation, and Off-grid Power.
- In the last decade, there has been a significant rise in industrialization and urbanization, which has resulted in a surge in carbon and greenhouse gases worldwide. Thus, to reduce carbon and greenhouse gas emissions, governments are promoting the utilization of natural gas in power generation and fuel in vehicles.
- Thus, governments are developing various supportive policies to increase the adoption of CNG and LNG-based vehicles, including providing subsidies and tax exemptions to automobile manufacturers and consumers.
- Resulting in increased natural gas consumption in the last decade across the globe. For instance, in 2012, the natural gas consumption was around 3,319.4 billion cubic meters which increased by more than 21% in 2021 to about 4,037.5 billion cubic meters.
- According to International Energy Agency, the Asia-Pacific region is expected to increase its total LNG imports from 69% in 2019 to 77% by 2025. China alone is anticipated to account for 22% of total LNG demand in 2025, contributing almost 40% of growth in total imports over the forecast period. India also leads LNG growth, accounting for about 20% of total trade, and sees its imports increase by 50% between 2019 and 2025 to support strong growth in demand.
- The United States is a significant locus of LNG activity. Stringent emission regulations in the marine sector also stimulate LNG as a bunker fuel in the United States and Europe. One of the biggest drivers in Europe and America is diesel replacement, for which natural gas is well suited. The European Union has the significant initiative of Sulfur Emission Control Areas (SECAs), and the United States has a parallel program.
- These initiatives are anticipated to boost the demand for LNG Liquefaction Terminals across the globe during the forecast period.
Middle East and Africa is Expected to Dominate the Market
- The Middle East and Africa include countries such as Qatar, Algeria, Nigeria, Egypt, Oman, Yemen, United Arab Emirates, and Angola. Qatar, Algeria, and Nigeria have the highest LNG liquefication facilities worldwide. Global liquefaction capacity reached 459.9 MTPA in 2021. Qatar, Algeria, and Nigeria had a total installed capacity of about 128.2 MTPA in 2021.
- Qatar continued to be the largest exporter of LNG until 2019. However, in 2021, Qatar's export volume dropped to the second position with a decrease export volume to 77 million tons accounting for 21% of the market share, compared to 77.1 million tons in 2020. Qatar utilizes its natural gas produced for electricity generation. In 2021, around 95% of the electricity generated in Qatar came from fossil fuels. Furthermore, the country utilizes its natural gas as LNG in ships or vessels operating on ocean water.
- Furthermore, Algeria is one of the major natural gas producers. In 2021, according to BP Statistical Review, natural gas production in Algeria surpassed 100 billion cubic meters, an increase of roughly 24% compared to 2020. The country is a net exporter of natural gas, whose export volume increased by around 10.4% to 16.1 bcm in 2021. The domestic natural gas demand is well covered by its gas infrastructure network, supplying all its domestic needs through its existing network.
- Similarly, Nigeria is one of the world's biggest exporters of LNG. Since the first train at Nigeria LNG was commissioned in 1999, the country has built a massive LNG export complex with a capacity of 22.5 million tons per annum (mtpa). In 2021, it held a 6% market share of the global LNG export market and was the world's sixth largest exporter of the commodity.
- According to the International Gas Union, Qatar and Nigeria have l approved liquefaction capacity of about 32 MTPA and 8 MTPA, which is expected to be operational in a couple of years. These developments are expected to drive the LNG liquefaction terminals market in the region.
LNG Liquefaction Terminals Industry Overview
The global LNG liquefaction terminals market is fragmented. Some of the key players in the market include McDermott, LNG ALLIANCE PTE LTD, Qatargas Operating Company Limited, Bechtel Corporation, and China National Offshore Oil Corporation.
LNG Liquefaction Terminals Market Leaders
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McDermott
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LNG ALLIANCE PTE LTD
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Qatargas Operating Company Limited
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Bechtel Corporation
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China National Offshore Oil Corporation
*Disclaimer: Major Players sorted in no particular order
LNG Liquefaction Terminals Market News
- In May 2022, New Fortress Energy plans to expand its portfolio of Fast LNG liquefaction terminals in the United States Gulf of Mexico. These Fast LNG liquefaction terminals are platform-and-jackup mounted plants designed for rapid buildout. The company would install its first two Fast LNG units in West Delta Lease Block 38, located about 16 nm off Grand Isle, Louisiana.
- In March 2022, the United States increased its LNG liquefaction terminal capacity. The country has six LNG liquefaction terminals, which collectively export about 82 million metric tons of LNG per year. This was 6 million metric tons higher LNG export over 2021. This can be ascribed to completing an additional liquefaction train at the Sabine Pass LNG terminal.
LNG Liquefaction Terminals Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 CAPEX Forecast for LNG Liquefaction Terminals in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Geography
5.1.1 North America
5.1.2 Europe
5.1.3 Asia-Pacific
5.1.4 South America
5.1.5 Middel Eanst and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 McDermott International Ltd
6.3.2 LNG ALLIANCE PTE LTD
6.3.3 Qatargas Operating Company Limited
6.3.4 Bechtel Corporation
6.3.5 China National Offshore Oil Corporation
6.3.6 TotalEnergies SE
6.3.7 Exxon Mobil Corporation
6.3.8 Shell PLC
6.3.9 Chevron Corporation
6.3.10 Petronet LNG Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
LNG Liquefaction Terminals Industry Segmentation
The Scope of the global LNG liquefaction terminals market includes:-
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middel Eanst and Africa |
LNG Liquefaction Terminals Market Research FAQs
What is the current Global LNG Liquefaction Terminals Market size?
The Global LNG Liquefaction Terminals Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in Global LNG Liquefaction Terminals Market?
McDermott, LNG ALLIANCE PTE LTD, Qatargas Operating Company Limited, Bechtel Corporation and China National Offshore Oil Corporation are the major companies operating in the Global LNG Liquefaction Terminals Market.
Which is the fastest growing region in Global LNG Liquefaction Terminals Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global LNG Liquefaction Terminals Market?
In 2024, the Asia-Pacific accounts for the largest market share in Global LNG Liquefaction Terminals Market.
What years does this Global LNG Liquefaction Terminals Market cover?
The report covers the Global LNG Liquefaction Terminals Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Global LNG Liquefaction Terminals Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Global LNG Liquefaction Terminals Industry Report
Statistics for the 2024 Global LNG Liquefaction Terminals market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global LNG Liquefaction Terminals analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
