Small-Scale LNG Market

Global Small-Scale LNG Market:

The global small-scale LNG market size reached US$ 35.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 64.8 Billion by 2032, exhibiting a growth rate (CAGR) of 6.6% during 2024-2032. The growing application in transportation and power generation, surging energy demand, and rising investments in floating LNG represent some of the key factors driving the market.

Small-Scale LNG Market Analysis:

• Major Market Drivers: The rising demand for efficient and cost-effective energy sources among the masses worldwide represents one of the key factors supporting the growth of the market. Besides this, the increasing utilization of small-scale LNG in the transportation sector as an alternative to diesel fuel is offering a positive market outlook.
• Key Market Trends: The growing adoption of small-scale LNG in the power generation sector, as it is inexpensive and efficient, is propelling the growth of the market. Moreover, the increasing awareness among individuals about environmental pollution coupled with the growing demand for small-scale LNG in marine bunkering is strengthening the market growth.
• Competitive Landscape: Some of the prominent small-scale LNG market companies include Dresser-Rand Group Inc. (Siemens), Engie SA, Excelerate Energy. L. P., PJSC Gazprom, General Electric (GE) Company, Honeywell International Inc., IHI Corporation, Linde Aktiengesellschaft, Novatek, Plum Energy LLC, Royal Dutch Shell PLC, Sofregaz SAS, and Wärtsilä Oyj Abp, among many others.
• Geographical Trends: According to the small-scale LNG market dynamics, Asia Pacific exhibits a clear dominance in the market. Many countries in the region are implementing stricter environmental regulations and policies to reduce greenhouse gas emissions. Small-scale LNG is seen as a cleaner alternative to other fossil fuels, aligning with these environmental goals.
• Challenges and Opportunities: High infrastructure costs for small-scale LNG, and regulatory and environmental compliances are hampering the market growth. However, rapid industrialization and urbanization in emerging markets increase the demand for flexible and cleaner energy sources like small-scale LNG.
   

Small-Scale LNG Market Trends:

Rising Environmental Regulations

The growing environmental regulations and the push for cleaner energy sources have spurred demand for LNG, which has lower carbon emissions compared to coal and oil. For instance, according to an article published by the National Grid Group, LNG emits 40% less CO₂ than coal and 30% less than oil, making it the cleanest fossil fuel. Small-scale LNG solutions cater to regions and industries looking to reduce their environmental footprint. These factors are expected to propel the small-scale LNG market in the coming years.

Increasing Adoption in the Maritime Industry

The maritime industry is increasingly adopting LNG as a fuel due to its lower sulfur content and compliance with stricter emission regulations, such as those imposed by the International Maritime Organization (IMO). For instance, in May 2022, Mitsui O.S.K. Lines, a Japanese shipping firm, collaborated with Nihon Shipyard Co., Ltd. and Shin Kurushima Dockyard Co., Ltd. to build and assemble four LNG-powered marine carriers. This has spurred demand for small-scale LNG solutions for bunkering and fueling ships. These factors are further positively influencing the small-scale LNG market forecast.

Infrastructure Development

Growth in small-scale LNG infrastructure, such as storage and bunkering facilities, is facilitating wider adoption and making small-scale LNG more accessible to end-users. For instance, in July 2024, DESFA launched its new LNG storage and gasification in Aspro Skydras to supply the local natural gas network in Greece. The Aspros LNG station provides reliable and sustainable energy options in the region of Central and Western Macedonia, thereby boosting the small-scale LNG market revenue.

Global Small-Scale LNG Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global small-scale LNG market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on terminal type, mode of supply, storage tank type, and application.

Breakup by Terminal Type: 

• Liquefaction Terminal
• Regasification Terminal
   

Liquefaction terminal represented the largest segment

The report has provided a detailed breakup and analysis of the small-scale LNG market based on the terminal type. This includes liquefaction terminal and regasification terminal. According to the report, liquefaction terminal represented the largest segment.

According to the small-scale LNG market outlook, the increasing need for liquefaction of gas before transporting it from one place to another is bolstering the market growth. Liquefaction terminals are essential for converting natural gas into its liquid form. This is a fundamental step for small-scale LNG operations, enabling the gas to be transported and stored efficiently. Moreover, with growing interest in small-scale LNG applications, such as in remote power generation, marine fuels, and industrial uses, there is a rising need for liquefaction terminals to support these activities.

Breakup by Mode of Supply: 

• Truck
• Trans-Shipment and Bunkering
• Pipeline and Rail
• Others
   

Truck accounted for the largest market share

A detailed breakup and analysis of the small-scale LNG market based on the mode of supply has also been provided in the report. This includes truck, trans-shipment and bunkering, pipeline and rail, and others. According to the report, truck accounted for the largest market share. 

According to the small-scale LNG market overview, small-scale LNG is transported by trucks directly to a satellite plant that re-gasifies and injects natural gas into the local network. Trucks offer significant flexibility for LNG transportation. They can reach diverse and remote locations, including areas where pipelines or large-scale LNG infrastructure are not feasible. This mobility is crucial for meeting the demand in off-grid and rural areas. Moreover, these are increasingly used to supply LNG for various applications, including industrial processes, power generation, and as a fuel for transportation. This broad range of uses drives significant demand for LNG transport via trucks. For instance, in December 2023, Tata Motors, a commercial vehicle maker, launched its LNG-powered Tata Prima line of trucks.

Breakup by Storage Tank Type: 

• Pressurized
• Atmospheric Tank
• Floating Storage Unit (FSU)
   

Atmospheric tank represented the largest segment

A detailed breakup and analysis of the small-scale LNG market based on the storage tank type has also been provided in the report. This includes pressurized, atmospheric tank, and floating storage unit (FSU). According to the report, atmospheric tank accounted for the largest market share.

Atmospheric tanks are designed for the storage of LNG at relatively low pressures compared to cryogenic tanks. They are used to store LNG in its liquid state at atmospheric pressure, making them suitable for small to medium-scale applications. Moreover, these tanks serve as intermediate storage solutions between the liquefaction plant and distribution points. They help in managing the supply chain and ensuring a steady supply of LNG for various end-users.

Breakup by Application:

• Electrical Power Generation
• Industrial Feedstock
• Transportation
• Others
   

Transportation accounted for the largest market share

A detailed breakup and analysis of the small-scale LNG market based on the application has also been provided in the report. This includes electrical power generation, industrial feedstock, transportation, and others. According to the report, transportation accounted for the largest market share.

The rising utilization of small-scale LNG in transportation for reduced fuel consumption and maintenance cost. Governments and international bodies are imposing stricter emission regulations for the transportation sector, which is further driving the demand for LNG in the sector. LNG is often more affordable than diesel, especially in regions with abundant natural gas resources. This price advantage helps reduce operational costs for transportation fleets, including trucks and ships. Moreover, advances in LNG engine technology have made LNG-powered vehicles and vessels more efficient and practical. Modern LNG engines offer performance comparable to traditional fuels with improved reliability and lower emissions.

Breakup by Region: 

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific accounts for the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); Middle East and Africa. According to the report, Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others) was the largest market for small-scale LNG.

According to the small-scale LNG market statistics, some of the factors driving the Asia Pacific small-scale LNG market included the rising utilization of small-scale LNG in heavy-duty vehicles and trucks. Besides this, the increasing demand for small-scale LNG in the power generation industry and for industrial purposes due to the surge in industrialization in the region is positively influencing the market. For instance, in December 2023, Indian LNG importer Petronet LNG Limited (PLL) signed an agreement with Gopalpur Ports to set up its maiden LNG terminal on the east coast of India.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include: 

• Dresser-Rand Group Inc. (Siemens)
• Engie SA
• Excelerate Energy. L. P.
• PJSC Gazprom
• General Electric (GE) Company
• Honeywell International Inc.
• IHI Corporation
• Linde Aktiengesellschaft
• Novatek
• Plum Energy LLC
• Royal Dutch Shell PLC
• Sofregaz SAS
• Wärtsilä Oyj Abp
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Small-Scale LNG Market Recent Developments:

• July 2024: DESFA launched its new LNG storage and gasification in Aspro Skydras for supplying the local natural gas network in Greece. The Aspros LNG station provides reliable and sustainable energy options in the region of Central and Western Macedonia.
• April 2024: Mitsui O.S.K. Lines, Ltd. (MOL) launched commercial operations on the floating storage and regasification unit (FSRU) Jawa Satu for the Jawa 1 power plant in Indonesia, which uses liquefied natural gas (LNG).
• March 2024: Meralco PowerGen Corporation (MGen), Aboitiz Power Corp. (AP), and San Miguel Global Power Holdings Corp. (SMGP) launched the Philippines' first and largest integrated LNG facility in Batangas to improve energy security and steer the country toward a cleaner, more sustainable future.

Small-Scale LNG Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the small-scale LNG market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global small-scale LNG market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the small-scale LNG industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.