Global Small Scale LNG Market Overview
The small-scale LNG (ssLNG) terminals directly use liquefied natural gas in its liquid form, instead of a conventional model of regasification before its introduction in the gas transmission grid. Technological advancements, development of supply infrastructure of LNG as vehicular fuel, and other varied applications of LNG have provided a boost for market growth.
The global Small Scale LNG market was worth $XX billion in 2017 and is forecasted to reach $XX billion by 2025, growing at a CAGR of XX% during the forecast period (2018-2025).
Global Small Scale LNG Market – Market Dynamics
The better energy cost benefits associated with small-scale LNG usage, power generation in remote areas, an increase in government support through tax benefits and financial initiatives would drive the growth of the global small-scale LNG market. Moreover, the implementation of International Maritime Organization's global sulfur limit in marine fuels at 0.5% m/m worldwide from January 1, 2020, is further expected to compel ship operators to invest heavily into the adoption of LNG fuel. The environmental benefits offered by small-scale LNG terminals including a reduction in carbon gas emissions have also propelled market growth.
The lack of receiving terminal infrastructure in developing regions, high capital expenditure costs, uncertainty over LNG fuel prices, and an expensive supply chain is likely to act as barriers to market growth. The production process is not cost-effective, as the use of sophisticated technology processing techniques and high-end equipment involves substantial initial expenditure.
The rise in the application of LNG as a transport fuel and power generation grids will continue to present newer opportunities for expansion to key companies.
Global Small Scale LNG Market – Segment Analysis
The global small-scale market is segmented by terminal type into liquefaction terminals and regasification terminals, with the liquefaction terminal segment is expected to grow at a higher rate in the forecast period driven by the demand of small-scale LNG supply in remote locations, in off-shore areas such as ships and islands, thereby reducing hurdles and streamlining the export process in a globally competitive market. Companies are also focussed on expanding their existing liquefaction facilities. For instance, in June 2018, Sempra LNG&M announced their plans to extend liquefaction facilities to the existing Energía Costa Azul (ECA) liquefaction terminal in Mexico. The regasification terminals are used for conversion of LNG gas from the liquid to gaseous state, most widely used during importation of small-scale LNG supply.
Based on the mode of transportation, the market is categorized into trucks and tankers, shipping & bunkering and others including pipelines and railways. The most widely used modes of transport include trucks and tankers for long-haul distances, truck-to-ship bunkering, and LNG filling in remote locations accessible by road. The shipping and bunkering mode of transportation is also expected to witness an increase in demand owing to transmission of small scale LNG fuel to marine ships in off-shore locations and remote islands.
By application, the market is segmented into marine fuel, heavy-duty vehicles fuel, Industrial power generation and others. Bunkering and transportation of marine fuel form the bulk part of a market share regarding application owing to the implementation of stringent regulations aimed at reducing fuel emissions and use of small scale LNG as fuel which has lower sulfur content. For instance, in June 2018, Total and Pavillion Energy signed an agreement to jointly develop a LNG bunker supply chain for marine vessels in the port of Singapore. The industrial power segment will also expect faster growth rate driven by the need for remote island-based countries in Southeast Asia and the Mediterranean Sea.
Global Small Scale LNG Market – Geographical Analysis
The global small scale LNG market is categorized by geography into North America, Europe, Asia-Pacific, South America, and Rest of the World (RoW).
Europe is the leading region by market share owing to widespread use of small scale LNG as an alternative to crude oil, enactment of federal regulations, especially pertaining to sulfur content in marine fuel and continued investment into the development of small scale LNG supply by key market players such as Royal Dutch Shell PLC, Engie SA, Gasum Oy, and Gazprom. Increased demand for power generation in off-grid remote locations such as islands in the Mediterranean Sea have also increased the supply of small scale LNG.
The region of Asia-Pacific is expected to witness faster growth rate during the forecast period with environmentally-driven increases in Chinese demand and better maintenance measures of nuclear power plants in South Korea significantly contributing to the rise in demand. Additionally, Japan’s need to secure stable, inexpensive and clean alternative energy resources has driven the application of LNG in the country, making Japan the world’s biggest LNG consumer. The occurrence of seasonal uplift in spot shipping market originating from strong winter demand in Asia is also expected to boost overall market revenues.
Global Small Scale LNG Market – Competitive Analysis
The global small scale LNG market is dominated by key players such as Honeywell International Inc., The Linde Group, Engie SA, Dresser-Rand Group Inc., and Gazprom. The developing countries present opportunities for expansion to companies looking to enter the market and increase their global footprint. For instance, in 2017, USA-based Okra Energy acquired Cryogas, a Peruvian company specializing in the transportation and storage of liquefied natural gas (LNG), as well as the installation of satellite regasification plants. The company has also announced the installation of the small-scale liquefied natural gas facility in Peru, catering to the increasing demand for affordable and clean-burning fuel in remote and developing areas of the country.
The market players of global small scale LNG market include –
1. Dresser-Rand Group Inc.
2. Engie SA
3. ENI SpA
4. Gasum Oy
6. Honeywell International Inc
7. Royal Dutch Shell PLC
8. Sofegraz S.A.
9. The Linde Group
10. Wärtsilä Oy
• The liquefaction terminals segment will grow at a faster rate, owing to the increase in the demand of small scale LNG supply in remote locations and off-shore areas.
• The small scale LNG market in Europe continues to grow supported by the implementation of environmental regulations and the presence of an improved regasification and liquefaction infrastructure in the region.
• The competitive scenario of the market is intense with key players such as The Linde Group, Engie SA, Dresser-Rand Group Inc., Honeywell International Inc., and Gazprom looking to strengthen market position through expansion of areas of operations and acquisitions.
Scope of the Report
The report covers the factors impacting the market, Porter 5 Forces, Market Share Analysis, Price trend analysis, Product Benchmarking, and company profiles. Small Scale LNG Market is segmented into terminal type as liquefaction terminals and regasification terminals. Based on the mode of transportation, the market is segmented into trucks and tankers, shipping and bunkering, and others. Based on application, the market is categorized into marine fuel, heavy-duty vehicles fuel, industrial power generation, and others. Geographically, the market is segmented into - North America, South America, Europe, Asia Pacific and Rest of the World.
Why Purchase the Report?
• Visualize the composition of the Small Scale LNG market across each indication, regarding type and treatment options, highlighting the vital commercial assets and players.
• Identify commercial opportunities in Small Scale LNG market by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of the Small Scale LNG market - level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the principal products of all major market players
• Equipment Suppliers/ Buyers
• Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals
• Emerging Companies
Chapter 1. Methodology and Scope
1.1 Research methodology
1.2 Scope of the Report
Chapter 2. Global Small Scale LNG Market– Trends
2.1 Key Trends & Developments
Chapter 3. Global Small Scale LNG Market – Industry Analysis
3.1. Industry Impact Factors (Drivers & Restraints)
3.1.1. Market Drivers
3.1.2. Market Restraints
3.2. Competitive Intensity- Porter 5 Forces
3.2.1. Buyers Power
3.2.2. Suppliers Power
3.2.3. Industry Competition
3.2.4. Threat of new entrants
3.2.5. Threat of Substitutes
Chapter 4. Global Small Scale LNG Market- Product Analysis
4.1. By Terminal Type
4.1.1. Liquefaction terminals
4.1.2. Regasification terminals
4.2. By Mode of Transportation
4.2.1. Trucks and Tankers
4.2.2. Shipping and Bunkering
4.2.3. Others (Pipelines, Rail)
4.3. By Application
4.3.1. Marine fuel
4.3.2. Heavy-Duty Vehicles fuel
4.3.3. Industrial power generation
Chapter 5. Global Small-Scale Market- Geographical Analysis
5.1. North America
5.2. South America
5.2.3. Rest of South America
5.3.2. United Kingdom
5.3.4. Rest of Europe
5.4. Asia Pacific
Chapter 6. Global Small-Scale LNG Market- Competitive Landscape
6.1 Competitive Scenario
6.2 Key Strategies adopted by Manufacturers
6.3 Product Benchmarking
Chapter 7. Global Small Scale LNG Market- Company Profiles
7.1. Dresser-Rand Group Inc.
7.2. Engie SA
7.3. ENI SpA
7.4. Gasum Oy
7.6. Honeywell International Inc
7.7. Royal Dutch Shell PLC
7.8. Sofegraz S.A.
7.9. The Linde Group
7.10. Wärtsilä Oy