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Small Scale LNG Market Trends

ID: MRFR//2012-HCR | 111 Pages | Author: Chitranshi Jaiswal| June 2024

Global Small-Scale LNG Market Overview 

The Small-Scale LNG Market is expected to reach a valuation of USD 206.23 Billion at a CAGR of 13.27% during the forecast period 2024-2032. High expansion activities by multinationals and well-established companies are expected to drive the global Small Scale LNG Market.

Small-scale liquefied natural gas (L.N.G.) is a flammable gas available in melted structures and handled in mechanical plants with low limits. The gas is cooled at very chilly temperatures and is changed over into an unscented and drab fluid that can be re-gasified for different applications. 

In contrast with oil and diesel, limited scope L.N.G. is greater climate agreeable and is broadly used intending to off-lattice power age necessities in distant modern and private buildings. Furthermore, it is generally utilized as a transportation fuel, as a mechanical feedstock, and for warming purposes in modern, business, and private areas. 

Small-Scale LNG Market Overview

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

Small-Scale LNG Market Trends 

  • Growth in LNG-fuelled marine ships and carriers with increased development in LNG-fuelled rails is an emerging trend aiding the market's growth.

The primary application of small-scale liquefied natural gas is within the marine industry, where it serves as the essential fuel source for LNG-powered vessels and carriers. A Japanese shipping company, Mitsui O.S.K. Lines, entered into a contractual arrangement in May 2022 with Nihon Shipyard Co., Ltd. and Shin Kurushima Dockyard Co., Ltd. regarding the development and assembly of four marine carriers powered by LNG. The construction and delivery of these vessels is slated to occur by 2025. Additionally, in advance of its strategy to implement healthier alternative fuels, the MOL (Mitsui O.S.K. Lines) Group declared its intention to introduce approximately ninety marine vessels powered by LNG by the year 2030. Therefore, it is anticipated that the growing advancements related to marine vessels and carriers propelled by LNG will lead to an increased need for small-scale LNG liquefaction in order to power these vessels and carriers. It is expected that this factor will propel the market's expansion in the coming years.

Apart from this, the primary application of small-scale liquefied natural gas (LNG) is to fuel trains that are powered by LNG. Operail, a railway company based in Estonia, Europe, introduced its inaugural LNG-powered rail service in 2021. Gazpromtrans and Sinara Group entered into a contract in September 2019 for the development of twenty-four rails propelled by LNG. The inception of the new LNG-powered rails' development took place in 2019, with an anticipated completion date of 2024. Additionally, the Railway Ministry of Bangladesh declared its intention in February 2022 to transform its diesel fuel-powered locomotives into locomotives propelled by biofuels such as LNG, CNG, and LPG. This endeavour would be executed in collaboration with G-volution Ltd., a manufacturing firm based in the United Kingdom. Accordingly, it is anticipated that the demand for small-scale LNG and mid-scale LNG plants to power LNG-powered railroads will increase in tandem with these burgeoning developments. It is anticipated that this will stimulate the expansion of the Small-Scale LNG Market in the upcoming years.

Small-Scale LNG Market Segment Insights:

The Small-Scale LNG Market is segmented based on mode of supply, and end-use. 

Mode of Supply Insights - 

Due to a variety of advantages it provides in comparison to alternative modalities of LNG supply, the truck segment held a substantial share of the small-scale LNG market in 2021, exceeding 20%. Trucks provide several advantages over transhipment and bunkering, rail, and other modes of supply when it comes to the transportation and distribution of LNG. These benefits include decreased refuelling time, improved scheduling efficiency, and decreased outages. For regions lacking access to railways, pipelines, or ports for transhipment and bunkering, truck-borne LNG distribution is the most practical and optimal alternative. It can traverse vast and fluctuating terrains. Shell Energy initiated its vehicle loading unit at its LNG terminal in Hazira, India, which constituted a component of its small-scale LNG supply infrastructure, in January 2021. By increasing consumer access to cleaner energy, the primary objective of this initiative was to increase the availability of LNG via transport throughout India. The truck supply market is experiencing robust growth over the forecast period due to the aforementioned advantages that propel its demand over alternative modalities of LNG supply.

End-Use Insights - 

As a result of the rising global demand for LNG-powered ships and vehicles, the transportation sector held the largest share of the small-scale LNG market in 2021, exceeding 25%. As compared to gasoline or diesel-powered vehicles, LNG-powered vehicles have reduced operating expenses and are environmentally friendly because they do not emit harmful emissions; this is driving demand for LNG in the automotive and marine industries. From 2023 to 2024, the delivery of the new vessels is planned. Small-scale LNG is anticipated to become more in demand as a primary source of marine or automotive fuel for the operation of vessels and ships propelled by LNG, as a result of the anticipated surge in demand for such products. Over the forecast period, this is anticipated to contribute to the growth of the small-scale LNG market.

Small-Scale LNG Market Regional Insights

The Small-Scale LNG Market is primarily studied across four regions, namely North America, Europe, Asia-Pacific and the Rest of the World. Out of these, the Asia-Pacific region dominates the total market share globally.

Asia-Pacific holds a 40% revenue share of the small-scale liquefied natural gas (LNG) market in 2022. Japan dominated demand at the national level and is anticipated to experience substantial growth throughout the period of forecast. The Asia-Pacific region can anticipate China to experience the most substantial development rate in the coming years. Energy mix gas comprises a negligible 4%-5% of the nation's primary energy consumption, thereby providing ample opportunity for expansion. The market's application scope has been broadened as a result of the utilization of gas-powered power plants being propelled by robust economic expansion nationwide.

North America is anticipated to experience the most rapid expansion throughout the period of forecast. The high demand for LNG is fueled by the abundance of shale gas deposits in the United States and the increased government emphasis on expanding renewable energy sources in the country's energy balance. Shale gas deposits can be found in provinces including Alberta, New Brunswick, British Columbia, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia, among others.

Small-Scale LNG Market Key Players & Competitive Insights 

Specifics regarding each competitor are presented in the competitive landscape of the small-scale liquefied natural gas (LNG) market. The document provides comprehensive information regarding the organization, its financial status, generated revenue, market potential, research and development expenditures, new market endeavours, worldwide reach, manufacturing facilities and sites, production capacities, company strengths and weaknesses, product introduction, product scope and depth, and application ownership. The data presented above pertains exclusively to the small-scale liquefied natural gas (LNG) market concentration of the respective corporations.

Key Players in the Small-Scale LNG Market

  • Gazprom (Russia)

  • Engie (France)

  • Honeywell International Inc. (U.S.)

  • Wärtsilä (Finland)

  • Linde plc (Germany)

  • Gasum Ltd., (Norway)

  • IHI Corporation (Japan)

  • Excelerate Energy L.P (U.S)

  • Prometheus Fuels (U.S)

  • Cryostar (U.S.)

  • General Electric (U.S.)

  • Novatek (Russia)

Recent Developments in Small-Scale LNG Market

March 2022 -

In March 2022, Avenir LNG Limited acquired HIGAS Srl, an Italian firm that administers and owns LNG terminals on a small scale. For this acquisition, fortifying the organization's position in the European market was the primary objective.

January 2021 - 

In January 2021, at its LNG terminal in Hazira, India, Shell Energy inaugurated a truck-loading mechanism as part of its small-scale LNG supply infrastructure. To improve consumer access to cleaner energy, the primary objective of this initiative was to increase the availability of LNG via truck throughout India.

November 2023 -

In November 2023, a subsidiary of Engie's GRTgaz, Elengy, inaugurated a novel small-scale LNG carrier loading operation at its Fos Tonkin terminal situated along the Mediterranean coast of France.

Small-scale LNG Market Segmentation

Small-scale LNG Type Outlook

  • Liquefaction Terminal

  • Regasification Terminal

Small-scale LNG Application Outlook

  • Utilities

  • Residential

  • Industrial

  • Commercial

  • Marine

  • Transportation

Small-scale LNG Region Outlook

  • North America,

  • Asia Pacific

  • Europe

  • Latin America

  • Middle East & Africa

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