The global small-scale Liquefied Natural Gas (ssLNG) market is a niche and nascent industry. With increasing pressure on large-scale LNG plants to showcase returns to investors, the operating companies are increasingly backing smaller scale LNG initiatives. The small-scale LNG plant with a capacity less than 1 MTPA can be constructed within three years, compared to large-scale LNG plants, which can take up to 10 years and high capital expenditure (CAPEX). Factors, such as the ability to enjoy profits in a shorter time, coupled with growing consumption of LNG as a primary energy fuel, are supplementing the demand for the uptake of numerous small-scale LNG projects across the world. Moreover, International Maritime Organization (IMO) directive of tighter maritime emission regulation, including having a sulfur content of 0.5% or lower from January 1st, 2020, is expected to encourage the growth of small-scale LNG projects, during 2018-2023 (the forecast period).
Rising Number of LNG Fleet Supplementing the Demand
The regulatory environment encompassing the use of shipping fuel is expected to become more stringent as climate change initiatives build momentum. From January 2020, a new global emissions cap will reduce allowable emissions of sulfur in regions that are not emission control areas (ECAs) from 3.5% to 0.5%. These limits are pushing the maritime industry to implement measures to incorporate more significant use of LNG, which has a far lower sulfur content than diesel as bunker fuel. As of February 2018, the number of LNG-fuelled ships in operation increased to 119, while 125 ships are on order. Additionally, to promote LNG fueled vehicles, the governments in some nations are providing grants and other financial aids. For instance, NOx fund by the Norwegian government offers financial cover by the government for the cost of high investment faced by companies for investing in LNG fueled ships. Other countries, such as France, have also pledged to consider similar financial incentives, which is expected to increase the number of LNG fueled ships. To capture the increasing demand for LNG as a shipping fuel, the uptake of small-scale LNG projects is expected to witness a significant increase during the forecast period.
Europe to Register Constant Growth in Demand
Europe has always been a pioneer in the implementation of small-scale LNG projects across the globe. Stricter regulations on the marine sector and huge subsidies on the use of LNG are stimulating the use of ssLNG as a bunker fuel in Europe. Despite sustained low oil prices and market uncertainty, there has been a significant increase in small-scale LNG projects in the region. With LNG becoming increasingly cost competitive, the drive for cleaner fuel gathering pace and the desire for energy companies to expand and diversify their LNG businesses, investors in the European region are becoming aware of the potential for small-scale LNG projects.
Singapore to Offer Increased Demand
The Singapore Government has been working jointly with industry players to advance the nation as a regional hub for small-scale development. There has been a positive response for small-scale operations from the local harbor craft industry, and LNG-fuelled tugboats and bunker tankers delivering conventional fuels, which are expected to be operational from 2018. In 2017, Singapore LNG Corporation (SLNG) successfully performed its first small-scale LNG reload at its terminal on Jurong Island. Similar small-scale projects are expected to increase in the country to promote Singapore as a regional hub catering to the growing demand for LNG in the Asia-Pacific region.
Key Developments in the Market
- March 2018: Okra Energy awarded the power generation contract for Peru’s first small-scale natural gas liquefaction (ssLNG) facility.
- February 2018: ICE developed new small-scale LNG carrier concept.
- September 2017: Keppel signed Heads of Agreement with Pavilion Energy and PLN to explore LNG solutions for Indonesia.
Major Players: The Linde Group, Wartsila Oyj Abp, General Electric Company, Honeywell International Inc., Chart Industries Inc., Black & Veatch Corp., Anthony Veder Group N.V., IM Skaugen SE, Evergas A/S, Royal Dutch Shell PLC, Engie SA, Gazprom PAO, Total SA, Skangas AS, among others.
Reasons to Purchase this Report
- Current and future small scale LNG market outlook in the developed and emerging nations
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- Segment that is expected to dominate the market
- Countries 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
3.4 Government Rules and Regulations
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 Substitute Products and Services
6.5 Intensity of Competitive Rivalry
7. Market Segmentation and Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.1 By Type
7.1.1 Liquefaction Terminal
7.1.2 Regasification Terminal
7.2 By Mode of Supply
7.2.2 Transhipment and Bunkering
7.2.3 Pipeline and Rail
7.3 By Application
7.3.2 Industrial Feedstock
7.3.3 Power Generation
8. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
8.1 North America
8.1.1 United States
8.1.3 Rest of North America
8.2.1 United Kingdom
8.2.4 The Netherlands
8.2.6 Rest of Europe
8.3.3 South Korea
8.3.4 Rest of Asia-Pacific
8.4 South America
8.4.4 Rest of South America
8.5 Middle East & Africa
8.5.3 South Africa
8.5.6 Rest of Middle East & Africa
9. Key Company Analysis* (Overview, Products & Services, Financials**, Recent Development, and Analyst View)
9.1 Small-scale LNG Technology Providers
9.1.1 The Linde Group
9.1.2 Wartsila Oyj Abp
9.1.3 General Electric Company
9.1.4 Honeywell International Inc.
9.1.5 Chart Industries Inc.
9.1.6 Black & Veatch Corp
9.2 Small-scale LNG Marine Transporter
9.2.1 Anthony Veder Group N.V.
9.2.2 IM Skaugen SE
9.2.3 Evergas A/S
9.3 Small-scale LNG Promoters
9.3.1 Royal Dutch Shell PLC
9.3.2 Engie SA
9.3.3 Gazprom PAO
9.3.4 Total SA
9.3.5 Skangas AS
10. Competitive Landscape
10.1 Mergers and Acquisitions
10.2 Joint Ventures, Collaborations, and Agreements
10.3 Strategies Adopted by Leading Players
10.4 Future of the Market
11.1 Contact Us
(*List of companies is not exhaustive)
(**Subject to availability on public domain)