APAC Small Scale LNG Market Research Report Information By Type (Liquefaction Terminal, Regasification Terminal), By Application (Heavy Duty vehicles , Marine Transport, Industrial & Power , Others) and By Country( China, India, Japan, Malaysia, South Korea, Rest of Asia-Pacific)- Forecast to 2032

APAC Small Scale LNG Market Overview

APAC Small Scale LNG Market Size was valued at USD 13,601.5 million in 2022. The APAC Small Scale LNG Market industry is projected to grow from USD 14,281.9 million in 2023 to USD 30,678.0 million by 2032, exhibiting a compound annual growth rate (CAGR) of 8.87% during the forecast period (2023 - 2032). One of the primary reasons driving the market's growth is the growing demand for energy efficient and cost-effective energy sources. Furthermore, the transportation industry's broad acceptance of the product is boosting the market growth. The rising demand for energy has increased the need for liquefied natural gas (LNG), resulting in increased LNG output (LNG). Also, numerous remote areas faces electricity problem, and government measures to improve rural electrification have increased demand for liquefied natural gas (LNG). Moreover, the integration of new technology and the increasing investments and the implementation of favourable government policies promoting the adoption of liquefied natural gas (LNG) extends profitable opportunities to the market players in the forecast period.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

APAC Small Scale LNG Market Trends

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  Increasing Demand From Heavy Duty Vehicles

  
  

Liquified Natural Gas is gaining significant popularity as a viable alternative fuel for various types of heavy-duty vehicles such as trucks and buses. The use of LNG in vehicles is contributing substantially towards reducing the environmental impact when compared with other types of fuels such as coal and diesel. This fuel also offers economic benefits to the consumers due to the stability in its prices when compared to fluctuating oil prices. This factor is one of the key contributors in the escalating demand of LNG as a transportation fuel.

The increasing emphasis on decarbonizing the transportation sector is anticipated to play a crucial role in flourishing the market of LNG in Asia pacific region. The intercity road transport represents around 65% of the 1600 crore logistics market of India, with around 2.5 lakhs trucks sold every year in the country. Thus, decarbonizing this section of the transportation industry will be very vital for the country to achieve its Net Zero ambition. Also, various companies are shifting towards using LNG vehicles in their fleet, for instance, companies such as Nestle, Dalmia Cements and Ultratech have started using LNG trucks in their fleets for meeting their ESG (Environmental, social and governance) targets. Moreover, with the increasing advancements in automobile industry, the focus on developing LNG based vehicles is also propelling, for instance, in September 2022, Blue Energy Motors launched India’s first Liquefied Natural Gas (LNG) fueled green truck at its plant in Pune. Thus, the growing availability of LNG based vehicles in the market will lead to an increasing demand for LNG from the automobile industry.

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  High Demand For Liquefied Natural Gas (Lng) From Transportation And Power Sectors

  
  

The market of small scale liquified natural gas is expected to experience considerable growth in the coming years. It is a clean burning fuel when compared with oil and coal, emitting very few pollutants. The increasing problem of air pollution and its harmful and negative impacts on environment and humans is driving the need for fuels such as LNG for enhancing the quality of air and mitigating the climate changes. The abundance of natural gas reserves in various parts of Asia Pacific is encouraging its adoption in energy and transportation industries. The energy security offered by LNG by reducing the dependency on imported coal and oil has encouraged various Asia Pacific countries to shift towards LNG usage. Another important aspect that is contributing towards the accelerating demand of LNG is its cost effectiveness. Its transportation cost is less as compared to the transportation cost of natural gas that is transported via pipelines. Also, the technological advanced happened in LNG industry has improved its efficiency along with reducing the cost which is further making LNG more competitive in the market. LNG is playing a crucial role in the transition towards low carbon energy future by limiting the emission of carbon dioxide.

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  Integration Of Technologies And Government Policies

  
  

The market of small scale LNG is witnessing significant technological advancements which are revolutionizing this industry in various aspects, further leading to the creation of new opportunities for the growth of the industry. Limiting carbon emissions is a key focus in the LNG industry, and cryogenic carbon capture is emerging as a promising solution. This innovation involves capturing and liquefying the carbon dioxide from flue gas, which can be stored or repurposed. The advantages offered by this innovation include significant reduction in greenhouse gas emissions, additional revenue stream through the sale of captured carbon dioxide and enhanced operational efficiency. Also, innovations in liquefaction technologies have played an important role in increasing the efficiency of LNG production along with reducing energy consumption and emissions. The introduction of high-efficiency compressors and modular designs have made the liquefaction plants more flexible and cost-effective, making the smaller-scale operations more efficient. Advancements in shipping of LNG are also playing a crucial role in making the supply chain of LNG more effective and efficient. One of the significant factors contributing to the evolution of LNG shipping is the development of advanced propulsion systems. Traditional vessels use steam turbines or dual-fuel engines, but these technologies have limitations in terms of emissions and efficiency. New technologies, such as fuel cells and gas turbines have led to revolutionary transformation owing to the benefits offered by them. Gas turbines offer advantages in terms of efficiency and environmental impact as these turbines can achieve high power outputs and can offer greater flexibility in terms of fuel options. Furthermore, fuel cell technology has the potential to revolutionize LNG shipping by providing an efficient and emission-free propulsion. These cells generate electricity through an electrochemical process, which helps in reducing greenhouse gas emissions to almost zero.

APAC Small Scale LNG Market Segment Insights:

APAC Small Scale LNG by Type Insights

The APAC Small Scale LNG Market segmentation, based on type has been segmented as Liquefaction Terminal, Regasification Terminal. Among these, the Liquefaction Terminal segment is projected to dominate the APAC Small Scale LNG market revenue through the projected period. Liquefied natural gas is developed by cooling to a liquid state which makes it easier to store and transport. This process involves the removal of impurities such as dust, acid gases, helium, water, and heavy hydrocarbons. The liquefaction process involves several steps, including pretreatment, acid gas removal and dehydration, removal of heavy hydrocarbons, and separation and liquefaction

APAC Small Scale LNG by Application Insights

Based on Application, the APAC Small Scale LNG Market is segmented as Heavy Duty vehicles , Marine Transport, Industrial & Power , Others. Out of which the Heavy Duty Vehicles segment dominated base year market and is also projected to dominate the APAC Small Scale LNG market revenue through the projected period. LNG (Liquefied Natural Gas) in heavy-duty vehicles, such as trucks and buses, offers several advantages over traditional diesel fuel, including lower emissions, improved air quality, and enhanced fuel efficiency. LNG trucks can navigate various routes and deliver LNG to remote or challenging locations that may not have access to pipelines. This flexibility makes trucking an attractive option for small-scale LNG distribution. For small-scale LNG operations, investing in pipelines or dedicated infrastructure can be expensive.

APAC Small Scale LNG Country Insights

Based on Country, the APAC Small Scale LNG market is segmented into China, India, Japan, Malaysia, South Korea, Rest of Asia-Pacific. The China  APAC Small Scale LNG market held the maximum market share and is also expected to account for a significant revenue share during the forecast period. Small-scale LNG (SSLNG) has gained attention in recent years as demand for natural gas continues to grow in the country. SSLNG has many unique advantages, including lower initial investment costs, shorter construction times, and better management and operational flexibility.

APAC Small Scale LNG Key Market Players & Competitive Insights

Key market players are emphasizing significantly on R&D for increasing their product offerings, which will further help the APAC Small Scale LNG Market to grow considerably. Market players are adopting several business development strategies such as acquisitions, mergers, collaborations, and partnerships to enhance their market presence and acquire a larger customer base. To survive in the competitive market, industry players must provide cost effective products.

The APAC Small Scale LNG market is very competitive with market players trying to develop unique and innovative products and solutions, which could render the competitors’ offerings obsolete. The competitive environment is likely to grow further owing to rising technological advancements. Some of the key players operating in the APAC Small Scale LNG Market are Petronet LNG Limited , Shell Energy India, Singapore LNG Corporation Pte Ltd. , Nikkiso, Kunlun Energy Company Limited , Chart Industries, Linde plc, Honeywell UOP, Air Products and Chemicals, Inc., Wartsila. To increase their reach and client base, key firms are concentrating on acquisitions and product innovation.

Petronet LNG Limited:Petronet LNG Limited is one of the fastest growing Public Limited Company in the Indian energy sector. It has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat with present nominal capacity of 17.5 MMTPA and the same is under expansion to 22.5 MMTPA in two phases. The terminal is meeting around 40% of the total gas demand of the country. It has another terminal at Kochi, Kerala having a nominal capacity of 5 MMTPA. It is mainly involved in receiving, storage and regasification of LNG

Shell Energy India:Shell Energy India is a Shell subsidiary that serves Indian customers through a complete value chain and integration, including competitive delivery of its LNG portfolio, regasification at the Hazira facility, and downstream customer sales. Shell Energy India offers flexible deal structures, risk management capabilities and reliable Gas and LNG supplies. Shell Energy India (SEI) owns and operates a 5 mtpa LNG receiving, storage and regasification terminal at Hazira, Gujarat. It is connected to 3 gas pipeline grids

The investment in small scale LNG market in Asia Pacific region is accelerating substantially with the increasing awareness regarding the advantages offered by LNG. For instance, Shell Energy Invests INR 3,500 Crore to Develop EV Recharge Station and LNG Regasification Terminal in Gujarat.

Key Companies in the APAC Small Scale LNG Market includes.

• Petronet LNG Limited


• Shell Energy India


• Singapore LNG Corporation Pte Ltd.


• Nikkiso


• Kunlun Energy Company Limited


• Chart Industries


• Linde plc


• Honeywell UOP


• Air Products and Chemicals, Inc.


• Wartsila

APAC Small Scale LNG Industry Developments

February 2024:India's Petronet LNG signs long-term LNG deal with QatarEnergy for the supply of around 7.5 million metric tons per annum (MMTPA) of LNG to India, for the period between 2028 to 2048. This LNG SPA between PLL and QatarEnergy will ensure energy security of India and assure continued supplies of regasified LNG to major consuming sectors like fertilizers, city gas distribution, refineries and petchem, power and other industries.

May 2023:Air Products and Chemicals, Inc. has signed an agreement to supply its proprietary liquefied natural gas (LNG) process technology and equipment to Technip Energies for the Xi'An LNG Emergency Reserve & Peak Regulation Project with Shaanxi LNG Reserves & Logistics Company Ltd, in ShaanXi Province, China.

APAC Small Scale LNG Market Segmentation:

APAC Small Scale LNG Type Outlook

• Liquefaction Terminal


• Regasification Terminal

APAC Small Scale LNG Application Outlook

• Heavy Duty vehicles


• Marine Transport


• Industrial & Power


• Others

APAC Small Scale LNG Country Outlook

• China


• India


• Japan


• Malaysia


• South Korea


• Rest of Asia-Pacific