Small-Scale LNG Market - Growth, Trends, and Forecast (2019 - 2024)

The market is segmented by Type (Liquefaction Terminal, and Regasification Terminal), by Mode of Supply (Truck, Transhipment and Bunkering, and Pipeline and Rail), by Application (Transportation, Industrial Feedstock, Power Generation, and Others) and Geography

Market Snapshot

Market Summary
Study Period:

2017-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

Europe

Key Players:

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Market Overview

The small-scale LNG 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 of less than 1 MTPA can be constructed within three years, compared to large-scale LNG plants, which can take up to 10 years. Factors, such as the ability to enjoy profits in a shorter time, coupled with the growing consumption of LNG as a primary energy fuel are expected to drive the small-scale LNG market in the coming years. However, factors such as lack of supporting infrastructure in the regions such as the Middle East & Africa and high CAPEX requirement along with long payback period of more than 12 years are expected to hinder the growth of the market studied.

  • Transportation application is expected to provide a significant boost to the small-scale LNG market owing to the increasing demand for LNG as a fuel source for ships and heavy duty trucks.
  • Owing to the high capital expenditure required for a small-scale LNG infrastructure, development of cost-efficient small-scale LNG infrastructure are expected to provide significant opportunities to the small-scale LNG technology providers and transporters in the future.
  • Europe dominated the market across the globe with the majority of the demand coming from countries such as Norway, Spain, and the United Kingdom.

Scope of the Report

The small-scale LNG market report include:

Type
Liquefaction Terminal
Regasification Terminal
Mode of Supply
Truck
Transhipment and Bunkering
Pipeline and Rail
Application
Transportation
Industrial Feedstock
Power Generation
Others
Geography
North America
United States
Canada
Rest of North America
Europe
United Kingdom
Norway
Spain
The Netherlands
France
Rest of Europe
Asia-Pacific
China
India
South Korea
Singapore
Rest of Asia-Pacific
South America
Peru
Panama
Brazil
Rest of South America
Middle East & Africa
Qatar
United Arab Emirates (UAE)
South Africa
Algeria
Rest of Middle East & Africa

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Key Market Trends

Rising Number of LNG-Fuelled Fleet Supplementing the Demand

  • A gradual shift to LNG for propulsion is being considered more advantageous when compared to the traditional method of fuelling ships with heavy fuel oil, marine gas oil, marine diesel oil, and others. Similarly, LNG-based propulsion reduces carbon footprint significantly and increases the ship’s operational efficiency.
  • 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 2018, the number of LNG-fuelled ships in operation increased to 121, while 51 ships are on order. The number of ships on order is expected to reach 126 by 2024, representing an increase of almost 147% compared to the 2018’s level.
  • 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.
  • Therefore, with the increasing demand from the maritime industry for LNG as fuel source along with different initiatives taken up by the governments across the world to promote LNG fueled ships are expected to drive the small-scale LNG market over the forecast period.
Small-Scale LNG Market - Key Market Trends

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Europe to Dominate the Market

  • Europe has always been a pioneer in the implementation of small-scale LNG projects across the globe. The majority of the LNG supply locations across the world are present in Europe. As of 2017, approximately 75% of the operational small-scale LNG infrastructures were in countries that have large scale regasification terminals, mainly in Western Europe.
  • Despite sustained low oil prices and market uncertainty, there has been a significant increase in small-scale LNG projects in the region. Stricter regulations on the marine sector and huge subsidies on the use of LNG are stimulating the use of small-scale LNG as a bunker fuel in Europe.
  • France, Italy, Spain and the UK have been driving the growth in small-scale LNG infrastructure, increasing the number of their operational facilities by 133% over 2016-2017. This trend in Western Europe is expected to continue in the coming years owing to the number of projects under construction or planning stage.
  • 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.
  • Therefore, factors such as increasing demand for LNG as a fuel source for ships as part of the IMO regulations to reduce the sulphur emissions by 2020 and increasing investments in the gas infrastructure across the region along with the upcoming small-scale LNG projects are expected to drive the small-scale LNG market over the forecast period, as the small-scale LNG facilities consume considerably less amount of time for construction in comparison with large-scale LNG facilities.
Small-Scale LNG Market - Regional

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Competitive Landscape

The global small-scale LNG market is moderately concentrated. Some of the major small-scale LNG technology providers include The Linde Group, Wartsila Oyj Abp, Baker Hughes A GE Company; small-scale LNG Marine Transporters include Anthony Veder Group N.V., IM Skaugen SE, and Evergas A/S; and small-scale LNG operators include Royal Dutch Shell PLC, Engie SA, Gazprom PAO, and Skangas AS.

Major Players

  1. The Linde Group
  2. Wartsila Oyj Abp
  3. Engie SA
  4. Royal Dutch Shell PLC

* Complete list of players covered available in the table of contents below

Small-Scale LNG Market - Market Concentration

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

    4. 1.4 Study Deliverables

    5. 1.5 Research Phases

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2024

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Liquefaction Terminal

      2. 5.1.2 Regasification Terminal

    2. 5.2 Mode of Supply

      1. 5.2.1 Truck

      2. 5.2.2 Transhipment and Bunkering

      3. 5.2.3 Pipeline and Rail

    3. 5.3 Application

      1. 5.3.1 Transportation

      2. 5.3.2 Industrial Feedstock

      3. 5.3.3 Power Generation

      4. 5.3.4 Others

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 United Kingdom

        2. 5.4.2.2 Norway

        3. 5.4.2.3 Spain

        4. 5.4.2.4 The Netherlands

        5. 5.4.2.5 France

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 India

        3. 5.4.3.3 South Korea

        4. 5.4.3.4 Singapore

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Peru

        2. 5.4.4.2 Panama

        3. 5.4.4.3 Brazil

        4. 5.4.4.4 Rest of South America

      5. 5.4.5 Middle East & Africa

        1. 5.4.5.1 Qatar

        2. 5.4.5.2 United Arab Emirates (UAE)

        3. 5.4.5.3 South Africa

        4. 5.4.5.4 Algeria

        5. 5.4.5.5 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Small-scale LNG Technology Providers

        1. 6.3.1.1 The Linde Group

        2. 6.3.1.2 Wartsila Oyj Abp

        3. 6.3.1.3 Baker Hughes A GE Company

        4. 6.3.1.4 Honeywell International Inc.

        5. 6.3.1.5 Chart Industries Inc.

        6. 6.3.1.6 Black & Veatch Corp

      2. 6.3.2 Small-scale LNG Marine Transporter

        1. 6.3.2.1 Anthony Veder Group N.V.

        2. 6.3.2.2 IM Skaugen SE

        3. 6.3.2.3 Evergas A/S

      3. 6.3.3 Small-scale LNG Operators

        1. 6.3.3.1 Royal Dutch Shell PLC

        2. 6.3.3.2 Engie SA

        3. 6.3.3.3 Gazprom PAO

        4. 6.3.3.4 Total SA

        5. 6.3.3.5 Skangas AS

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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