Global demand for LNG has increased significantly, but its use as a fuel has still not gained momentum. LNG as a fuel is expected to gain momentum in the near future, owing to tough emission regulations on the operations of marine vessels. Power plants have started using LNG as a fuel, but on a low scale, though it is an opportunity for the market, the growth in this segment is not likely to compete with the transportation sector.
LNG as a Fuel for Shipping Driving the Demand
The International Maritime Organization (IMO) has put a cap of 0.50% m/m on sulfur content, reducing it by around 85% from the current cap on ships’ fuel oil, effective from 1st January 2020. The strict regulations in response to climate change have put pressure on shipping vessels to choose LNG in place oil. At the beginning of March 2018, there were more than 120 vessels burning LNG, with more than two-third operating in Europe. The number of the LNG-based vessels is expected to double due to tough IMO regulations in the near future, driving the demand for LNG as a fuel.
Power Market an Opportunity for LNG
Coal-fired power plants have been the biggest players in terms of power generation, and now several economies are shifting to cleaner fuel, such as natural gas, solar, and wind for power generation. Recently, countries, such as Brazil, Pakistan, and Bangladesh, etc., have either introduced LNG-fired power plants or they are in the construction stage and are expected to be operational during the forecast period. Bangladesh is developing one of the world’s largest LNG-based combined cycle power plant of 500-600 MW. In 2016, Brazil started constructing two LNG-fired power plants of a total capacity of 1.24 GW. As the technology improves and liquefaction becomes cheaper the number of LNG-fired power plants is expected to grow significantly.
Europe and North America are Expected to Experience the Fastest Growth
The maritime industry of Europe and North America is expected to move toward cleaner LNG fuel faster than rest of the regions, and hence, the two regions are expected to continue to be the leaders in the use of LNG as marine fuel. The growth in developing countries, such as China and India, is expected to drive the marine trade in the Asia-Pacific region. But this region lacks the infrastructure required for LNG fuel transportation, which in turn is expected to hinder the growth of the LNG market during the forecast period.
Key Developments in the Market
- November 2017: Total acquired Engie’s upstream LNG business for USD 1.49 billion. The acquisition participation interest in liquefaction plants and long-term LNG sales and purchase agreements.
Major Players: Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell, Total, BP, Petro China, China, Petroleum & Chemical Corporation, Conoco Philips, Eni SpA, Accenture PLC, among others.
Reasons to Purchase this Report
- Current and future LNG as a fuel market outlook in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Regions that are expected to witness the fastest growth during the forecast period
- Identify the latest developments and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in excel)
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1. Executive Summary
2. Research Methodology
3. Market Overview
3.2 Market Size and Demand Forecast until 2023
3.3 Recent Trends and Developments
4. Market Dynamics
5. Supply Chain Analysis
6. Industry Attractiveness - Porter’s Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitutes
6.5 Intensity of Competitive Rivalry
7. Market Segmentation and Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.1 By Application
7.1.1 Power Generation
8. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
8.1 North America
8.3 South America
8.4 Middle East & Africa
9. Key Company Analysis* (Overview, Products & Services, Financials**, Recent Development, and Analyst View)
9.1 Chevron Corporation
9.2 Exxon Mobil Corporation
9.3 Royal Dutch Shell
9.6 Petro China
9.7 China Petroleum & Chemical Corporation
9.8 Conoco Philips
9.9 Eni SpA
9.10 Accenture PLC
10. Competitive Landscape
10.1 Mergers and Acquisitions
10.2 Joint Ventures, Collaborations, and Agreements
10.3 Strategies Adopted by Leading Players
*List not Exhaustive
**Subject to availability on public domain