Global Liquefied Natural Gas (LNG) Market Size, Manufacturers, Supply Chain, Sales Channel and Clients, 2021-2027

LNG Market 

What is LNG?

LNG Market Trends

Increased demand for natural gas (NG) from downstream industries are some of the significant factors driving the LNG Market. Furthermore, the rising industrialization and urbanisation, as well as an increasing number of power-related projects such as petrochemicals and city gas distribution (CGD), are likely to contribute significantly to the LNG market expansion. 

Trends Influencing the Growth of LNG Market

When coal-fired power plants operate in a flexible peaking mode, their thermal efficiency declines and maintenance costs rise, making them unsuitable for providing flexible electricity. Furthermore, the fundamental benefit of renewable energy: clean energy, is negated by increasing carbon emissions from coal-fired plants. When energy demand is high, such as during cold or hot weather, or when pipeline delivery capacity is constricted or insufficient to fulfil increasing demand for natural gas by other consumers, some power stations create and store LNG onsite to generate electricity. Natural gas is piped into power plants, liquefied in small-scale liquefaction plants, and stored in cryogenic tanks. LNG is regasified and burned by power plants as needed. Thus the growing use of LNG for Power Generation is expected to drive the growth of the LNG markets.

During the forecast period, the LNG market is likely to be driven by an increase in the number of investments in the sector. The rise of the LNG industry is fueled by a considerable increase in the number of investments made in the field by various organisations, which has resulted in significant increases in gas production and transportation infrastructure, lowering gas costs. Lower wholesale gas costs in end-use markets means that the economics of using gas are becoming more beneficial when compared to alternatives like oil. Gas availability has also expanded as a result of recent investments in terminals and pipelines to connect gas to users. 

As the need for natural gas rises, global LNG consumption is likely to rise.  This trend is expected to drive the growth of the LNG market. Liquefying natural gas is a technique to transmit natural gas from producing regions to markets, such as to and from the United States and other countries, when natural gas pipelines are not viable or do not exist. The Asian countries account for the majority of worldwide LNG imports.