Liquefied Natural Gas Market Size, Share & Trends Report

Liquefied Natural Gas Market Size, Share & Trends Analysis Report By Application (Transportation Fuel, Power Generation), By Region (North America, Europe, APAC, Central & South America, MEA), And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-1-68038-553-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 130

Report Overview

The global liquefied natural gas market demand was 356.06 million tons in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2020 to 2027. Rapid growth in pipeline infrastructures with favorable government regulations, rising demand for natural gas (NG) from downstream industries, and fluctuation in oil prices are some of the major factors fueling the industry growth. Growing focus on the expansion of adequate support for infrastructure across the developing as well as developed nations is estimated to propel the liquefied natural gas (LNG) demand over the forecast period. However, inadequate pipeline infrastructure in remote locations is likely to hinder the market growth. Growing industrialization and urbanization, along with a growing number of power-related projects, such as petrochemicals and city gas distribution (CGD), are expected to subsidize expressively towards the market growth in the upcoming years.

The U.S. liquefied natural gas market demand

New infrastructure and production projects are expected to come online within growth trends that are obviously below earlier LNG prospects, supporting the prospects of low prices and overcapacity. This casts a tracker over future finances, which will be needed in the long-term basis to guarantee the renewal of production and security of supply throughout the region.

The United States NG industry has vividly transformed over the last 10 years with half prices as production grew by nearly 50%. The significant driver to the current energy resurgence is the largely surprisingly success on extraction unconventional gas, most especially in the Utica and Marcellus shale plays in Appalachia with an ability of Eastern part of Canada to receive more imports from the United States and throughput at the Cove Point liquefied natural gas export facility located at Maryland. Hence, for the U.S. to sustainably build a new liquefied natural gas export industry, producers will need to produce gas at low prices not only by financing additional capital to explore and drill more wells but also by pursuing new technologies and leveraging operational efficiencies, which will drive the LNG market.

Some of the major drivers of future supply growth for LNG are the United States shale and large conventional projects across Russia and the Middle East, which are also under pressure from the recent decline in oil prices, and ambiguity surrounding demand trends over the medium and short term. The surge in investment in liquefied natural gas projects throughout 2018 and 2019 brought export capacity in North America, Russia, and Africa. Slower growth in worldwide gas demand in the upcoming years is expected to result in capacity outperforming LNG imports in the future and mitigating the risk of a tight liquefied natural gas market for the time being.

As the traditional market has somewhat challenged the liquefied natural gas suppliers who are energetically following 2nd tier market, those with limited or intermittent year-round demand and fewer robust balance sheets. With an upsurge in trading within Southeast Asia, the Caribbean, and the Middle East, these regions are expanding their market for liquefied natural gas and providing chances for small-scale expansions on the supplier side.

For 2020, 1stquarter has demonstrated to be challenging for LNG and natural gas producers as last year, the low price of gas has prevailed through the fourth quarter. The rise in liquefied natural gas exports in the areas of the Northern Hemisphere led to a drop in worldwide gas prices. The bearish attitude continued during February and March as markets across the globe started to declare country lockdowns in order to control the spreading of the virus.

Application Insights

Based on the application type, the market is segregated as a transportation fuel, power generation, and others. The power generation application segment accounted for the largest volume share of 47.1% in 2019. The growth of the transportation fuel segment is ascribed to the growing use of liquefied natural gas as fuel in vehicles across European countries and China. The liquefied natural gas fuel vehicle system carries NG to the engine at a required supply pressure while maximizing the fuel density of the fueling and tanks stations. These aspects are expected to fuel demand during the projected period.

Global liquefied natural gas market share

As liquefied natural gas continues to play a vibrant role in the power generation, mining, and industrial sectors with NG usage as a vital feedstock for generating power across various industries, an enormous impact on switching fuel to liquefied natural gas fuel is expected to affect the emissions produced by the transportation sector.

Growing demand for NG is highly useful for the environment owing to the reduced amount of harmful environmental impacts. Increased usage of this fuel in the mining, industrial and power generation sectors has displayed a significant change over the historic period. A decline in the prices, as well as low fuel switching costs, are enhancing the industry growth in the transportation and power generation application.

India, Brazil, Japan, and China are likely to witness peak demand owing to rapidly growing investments in LNG infrastructure development and increasing awareness regarding the excellent benefits of eco-friendly products across diverse end-use industries. Favorable regulations in these markets have also attracted incredible investments from foreign companies and other investors.

Regional Insights

The Asia Pacific region accounted for the largest revenue share of 41.3% in 2019. Australia is one of the global exporters of liquefied natural gas, with major projects in Queensland and Western Australia. Moreover, at times, these projects have faced planning pressure and significant cost, making them a challenge for the operators and developers owing to the drastic decrease in LNG prices.

Increasing demand from nuclear plants in Eastern Asia is likely to impact the energy mix of South Korea and Japan. India is expected to remain an attractive location for the exporters and manufacturers owing to the upsurge in the infrastructure development. Approximately over 30% of new LNG supply capacity is under construction and is expected to come online by 2025.

The European Union has increased its dependence on gas imports and with producers in the U.S., is pursuing an overseas market for LNG and pipeline infrastructure. Russia is one of the major exporters and a dominant player of the LNG market as one of its companies is capable of exporting fuel from its remote locations to other countries using pipeline infrastructure and other means of transportation.

In 2019, globally LNG import grew over 12% during the first nine months. Where China’s LNG import increased by 14-16% in 2019. Numerous other countries such as Mexico, Egypt, and China are moving forward with significant restructurings by inviting more private partnerships in the supply, marketing, transportation chain, and familiarizing with 3rd-party access to LNG infrastructure.

India is projected to register the highest growth rate in the Asia Pacific in the coming years. Energy mix gas accounts for only 4-5% of prime energy consumption across the country, letting ample space for development. Robust economic growth across the country is also leading towards higher consumption of gas-based power facilities with an enhanced application scope for the market. These factors are hence expected to boost the demand for liquefied natural gas across the market.

Key Companies & Market Share Insights

The global LNG industry is characterized by intense competition owing to the presence of major industries across the regions as the companies are fairly concentrated and highly competitive. Application developments are expected to be the key parameter for being competitive in this market. The industry is also anticipated to witness frequent mergers and acquisitions as an attempt to diversify the product portfolio and gain market share. Some of the prominent players in the liquefied natural gas market include:

  • Total

  • Chevron Corporation

  • Exxon Mobil Corporation

  • Petronet LNG Limited

  • China National Petroleum Corporation

  • Petroliam Nasional Berhad (PETRONAS)

  • Snam SPA

  • PetroChina Company Limited

  • Royal Dutch Shell

  • BP

  • Equinor ASA

  • Gazprom

  • China Petroleum & Chemical Corporation

  • Eni SpA

  • ConocoPhillips Company

Liquefied Natural Gas Market Report Scope

Report Attribute

Details

Market size value in 2020

13.7 billion

Revenue forecast in 2027

17.9 billion

Growth Rate

CAGR of 4.8% from 2020 to 2027

Market demand in 2020

376.20 million tons

Volume forecast in 2027

560.19 million tons

Growth Rate

CAGR of 5.8% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in million tons, revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue and volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, region

Regional scope

North America; Europe; Asia Pacific; Central and South America; Middle East & Africa

Country scope

The U.S.; Canada; Mexico; The U.K.; Germany; France; China; India; Japan; UAE; Qatar; Brazil; Argentina

Key companies profiled

Total; Chevron Corporation; Exxon Mobil Corporation; Petronet LNG Limited; China National Petroleum Corporation; Petroliam Nasional Berhad (PETRONAS); Snam SPA; PetroChina Company Limited; Royal Dutch Shell; BP; Equinor ASA; Gazprom; China Petroleum & Chemical Corporation; Eni SpA; ConocoPhillips Company

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Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global liquefied natural gas market report on the basis of application and region:

  • Application Outlook (Volume, Million Tons; Revenue, USD Million, 2016 - 2027)

    • Transportation Fuel

    • Power Generation

    • Others

  • Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • The U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central and South America

      • Brazil

      • Argentina

    • The Middle East & Africa

      • UAE

      • Qatar

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