The global large scale LNG terminals market is expected to post a CAGR of nearly 3% during the period 2018 – 2022, according to the latest market research report by Technavio.
A key factor driving the growth of the market is the increasing global energy demand. As per the IEA, by 2040, the global energy demand is expected to increase by 30%. The global economy is growing at an average rate of 3.4% annually. Moreover, the population is expected to cross 9 billion by 2040. Because of the fast-paced development, in developing countries such as India and China, the need for energy is increasing.
This market research report on the global large scale LNG terminals market 2018 – 2022 also provides an analysis of the most important trends expected to impact the market outlook during the forecast period. Technavio classifies an emerging trend as a major factor that has the potential to significantly impact the market and contribute to its growth or decline.
In this report, Technavio highlights the commoditisation of LNG as one of the key emerging trends in the global large scale LNG terminals market:
Global large scale LNG terminals market: commoditisation of LNG
LNG has turned out to be a global commodity ever since the first LNG cargo was shipped from an LNG facility in Algeria in 1964. Supply surplus combined with increasing demand is essential for the growth of the global liquid commodity market. This is because, during stressed situations, the producers and consumers prefer long-term fixed agreements than trading openly. Factors such as increasing diversity of suppliers and buyers, rising installation of floating regasification plants and growing liquidity of tradable LNG have resulted in the commoditisation of LNG similar to oil. Thus, the global LNG market is gradually turning out to be more transparent, liquid and efficient.
“The global commercialisation of LNG has opened up new avenues for the stakeholders. The plunging process increases the usage of LNG, boosting coal-to-gas switching. As the supply surplus may act as a threat and overwhelm the existing contracts, the producers and importers of LNG consider active trading on a spot basis which results in reduced prices. As a result, players in the market are expanding their trading teams to manage excess cargo flows and navigate the open market,” says a senior analyst at Technavio for research on oil and gas.
Global large scale LNG terminals market: segmentation analysis
This market research report segments the global large scale LNG terminals market by application (regasification and liquefaction) and geographical regions (APAC, EMEA and the Americas).
The regasification segment held the largest market share in 2017, accounting for over 69% of the market. This application segment is expected to dominate the global market throughout the forecast period.
APAC led the market in 2017 with a market share of over 54%. This region is expected to dominate the market through 2022, however, there will be a decrease in its market share.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/05122018/global-large-scale-lng-terminals-market-2018-2022/
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