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Small scale LNG market global forecast to 2021

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LNG Industry,


In terms of volume, the small scale LNG market is projected to reach 299 million tpy by 2021, at a CAGR of 2.7% from 2016 – 2021. Increasing demand for LNG from the remote locations for use in electric power generation plants and global commoditisation of LNG are some of the major factors driving the demand for LNG from small scale regasification terminals.

Furthermore, the development of downstream infrastructure and logistics, remote regasification terminals, trucking stations, and LNG bunkering are some other factors fueling the growth of the small scale LNG market. The LNG systems and supply infrastructures of LNG are more expensive than those required for conventional fuels due to the utilisation of complex technologies and equipment in them. This factor is expected to hamper the growth of the small scale LNG market during the forecast period.

Moreover, continuously changing regulatory environment for the small scale LNG production also poses a challenge to the growth of the small scale LNG market.

"The electric power generation end user segment of the small scale LNG market is projected to grow at the highest CAGR during the forecast period."

The electric power generation end user segment of the small scale LNG market is projected to grow at the highest CAGR during the forecast period, 2016 – 2021. The growth of electric power generation end user segment of the small scale LNG market can be attributed to need for maintaining local air quality, existence of proper LNG infrastructure, implementation of strategic energy reserve policies by various regulatory authorities, and availability of residual fuels.

Power plants that supply power in emergency situations are not preferred for conversion to small scale LNG plants due to high expenditure involved in the storing of small scale LNG as compared to diesel.

"The Asia-Pacific small scale LNG market is projected to grow at the highest CAGR during the forecast period."

In terms of volume, the Asia-Pacific small scale LNG market is projected to grow at the highest CAGR during the forecast period. The Asia-Pacific region has emerged as an important consumer of small scale LNG due to increasing demand for small scale LNG for use in heavy-duty vehicles and electric power generation, among others.

The demand for small scale LNG in the Asia-Pacific region is increasing due to the adequate and easy availability of LNG in the region, increasing adoption of LNG for electricity generation, and low trade prices for LNG.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27102017/small-scale-lng-market-global-forecast-to-2021/

 

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