Liquefied Natural Gas (LNG) Infrastructure Market to Grow with a CAGR of 15.19% through 2028
Increasing demand for LNG as a clean and reliable fuel
source and expanding LNG infrastructure in emerging markets are likely to drive
the market in the forecast period.
According to TechSci Research report, “Liquefied
Natural Gas (LNG) Infrastructure Market – Global Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2028”, the Global Liquefied
Natural Gas (LNG) Infrastructure Market stood at USD 72.08 billion in 2022 and
is anticipated to grow with a CAGR of 15.19% in the forecast period. One of the
significant drivers of the global Liquefied Natural Gas (LNG) Infrastructure
market is the relentless growth in global energy demand. As economies expand,
industries develop, and populations increase, the need for reliable and
accessible energy sources becomes paramount. LNG, due to its versatility and
environmental advantages, has emerged as a key player in meeting this surging
demand. Developing nations, in particular, are experiencing rapid
industrialization and urbanization, resulting in higher energy requirements.
LNG offers an attractive solution as it can be transported over long distances,
making it accessible to regions without domestic natural gas production. This
flexibility creates a global LNG trade network, prompting investments in LNG
infrastructure, including liquefaction plants, storage facilities, and
distribution networks. Furthermore, the transition to cleaner energy sources to
combat climate change is propelling the demand for LNG. Natural gas, the
primary component of LNG, emits fewer greenhouse gases when burned compared to
coal and oil. Governments and organizations worldwide are prioritizing
emissions reduction, making LNG an attractive option for power generation,
transportation, and various industrial applications. Consequently, investments
in LNG infrastructure are spurred by the urgency to meet these environmental
goals and address the growing energy needs of a burgeoning global population. In
summary, the increasing global energy demand, driven by economic growth and
environmental considerations, is a pivotal driver of the global LNG
Infrastructure market. LNG's adaptability and lower emissions make it a vital
energy source for the future, necessitating investments in infrastructure to
support its production, storage, and distribution.
The expansion of
LNG export capacity and the growth of global LNG trade networks represent
another vital driver of the global LNG Infrastructure market. LNG has become an
increasingly sought-after commodity, and numerous countries are actively
investing in boosting their LNG export capabilities to capitalize on its
economic and environmental benefits. One key factor contributing to this driver
is the abundant natural gas reserves found in various regions, including the
United States, Qatar, Russia, and Australia. These countries are making
substantial investments in constructing LNG liquefaction plants and related
infrastructure to convert their natural gas into LNG for export. The expansion
of LNG export capacity is driven by the desire to tap into international
markets and secure a steady income from LNG sales. Moreover, diversification of
LNG supply sources is essential for energy security. Importing countries aim to
reduce their dependence on a single supplier by establishing LNG supply
agreements with multiple exporters. This diversification enhances energy
security and promotes competition among suppliers. Thus, importing nations
invest in building LNG import terminals and regasification facilities to
accommodate LNG shipments from various sources. The growth of LNG trade routes
is another significant driver. New LNG shipping routes have opened up,
connecting previously isolated markets. For instance, the Northern Sea Route
through the Arctic now facilitates LNG shipments between Europe and Asia, reducing
transport times and costs. As LNG trade becomes more global and interconnected,
the demand for LNG infrastructure, including specialized LNG carriers and transhipment
facilities, continues to grow. In summary, the expansion of LNG export
capacity, diversification of supply sources, and the growth of LNG trade routes
are key drivers of the global LNG Infrastructure market. These factors promote
investments in liquefaction plants, export and import terminals, and shipping
infrastructure to facilitate the global flow of LNG and meet the energy needs
of diverse markets.
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The Global Liquefied Natural Gas (LNG) Infrastructure Market
is segmented into type, end user industry and region. Based on type, The Liquefaction Terminal segment
held the largest market share in 2022 & expected to maintain it in the
forecast period. LNG is a globally traded commodity, and liquefaction terminals
are at the heart of this trade. They are responsible for converting natural gas
into a liquid form that can be easily transported across oceans in specially
designed LNG carriers. This allows countries with abundant natural gas reserves
to export their surplus production to regions with growing energy demands. As a
result, liquefaction terminals are critical for enabling the international LNG
market. Many LNG-producing countries rely on LNG exports as a significant
source of revenue. These exports provide economic benefits, trade
opportunities, and foreign exchange earnings. Countries like Qatar and
Australia, which have invested heavily in liquefaction capacity, have become
major LNG exporters, contributing significantly to their economies. Liquefaction
terminals play a crucial role in enhancing energy security for importing
nations. By establishing import terminals and LNG supply contracts, countries
can diversify their energy sources and reduce dependence on a single supplier
or energy route. This diversification enhances energy security and resilience
in the face of supply disruptions or geopolitical tensions. Liquefaction
terminals offer a means to monetize domestic natural gas reserves effectively.
Countries with substantial natural gas reserves can convert this resource into
a globally tradable product, LNG, which often fetches higher prices in
international markets than domestically consumed natural gas. This economic
incentive encourages the development of liquefaction infrastructure. As the
world shifts towards cleaner energy sources to mitigate climate change, LNG is
viewed as a transitional fuel with lower carbon emissions compared to coal and
oil. Liquefaction terminals facilitate the production of LNG, making it
available for power generation, industrial processes, and transportation. This
aligns with the global effort to reduce greenhouse gas emissions. Advances in
LNG liquefaction technology have made the process more efficient and
cost-effective. This has encouraged further investment in liquefaction
infrastructure as it becomes increasingly economically viable to produce LNG.
Based on end user industry, The Electric Power Generation segment held
the largest market share in 2022 and is projected to experience rapid growth
during the forecast period. LNG is considered a cleaner-burning fuel compared
to coal and oil. When used for electricity generation, LNG emits fewer
greenhouse gases and pollutants, contributing to reduced air pollution and
improved air quality. This environmental advantage aligns with global efforts
to combat climate change and reduce the carbon footprint of power generation. LNG-fired power plants offer significant
operational flexibility. They can be quickly ramped up or down to meet
fluctuating electricity demand, making them well-suited for load balancing and
grid stability. This flexibility is crucial for ensuring a reliable power
supply, especially in regions with variable renewable energy sources like wind
and solar. LNG plays a pivotal role in enhancing energy security. It can be
sourced globally and transported to regions with limited access to domestic
natural gas reserves. This diversification of energy sources reduces dependence
on a single energy supply, mitigating the risk of supply disruptions due to
geopolitical tensions or natural disasters. Many countries are transitioning
from coal and other high-emission fuels to cleaner energy sources. LNG serves
as a transitional fuel that offers a lower-carbon alternative while renewable
energy sources are being further developed and integrated into the grid. This
transition aligns with international commitments to reduce carbon emissions and
combat climate change. The economic viability of LNG for power generation is
another driving factor. The availability of abundant natural gas reserves and
the relative stability of LNG prices have made it an attractive and
cost-effective option for electricity generation. This economic incentive
encourages investments in LNG infrastructure to support power generation needs.
To facilitate LNG's use in power generation, countries invest in LNG import
terminals, regasification facilities, and associated distribution networks.
These infrastructure developments are essential for receiving, storing, and
transporting LNG to power plants, ensuring a reliable supply.
Major companies operating in the Global Liquefied
Natural Gas (LNG) Infrastructure Market are:
- Bechtel
Corporation
- Chiyoda
Corporation
- Fluor
Corporation
- McDermott
International Ltd
- Saipem
S.p.A.
- Technip
Energies N.V.
- JGC
Holdings Corporation
- Samsung
Engineering
- Hyundai
Engineering & Construction
- Wood
Group
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“The Global Liquefied Natural Gas (LNG) Infrastructure
market is expected to rise in the upcoming years and register a significant
CAGR during the forecast period. The global Liquefied Natural Gas (LNG)
Infrastructure market is significantly driven by the increasing demand for
cleaner energy sources. As environmental concerns mount, industries, power
plants, and transportation sectors seek alternatives to high-emission fuels
like coal and oil. LNG, known for its lower carbon footprint, emerges as a
preferred transitional fuel. This demand for cleaner energy drives investments
in LNG infrastructure, including liquefaction plants, import terminals, and
distribution networks. Governments and businesses worldwide are recognizing the
environmental and economic benefits of LNG, making it a crucial driver in
meeting energy needs while mitigating environmental impact. Therefore, the
market of Liquefied Natural Gas (LNG) Infrastructure is expected to boost in
the upcoming years.,” said Mr. Karan Chechi, Research Director with TechSci
Research, a research-based management consulting firm.
“Liquefied Natural Gas (LNG) Infrastructure
Market - Global Industry Size, Share, Trends, Opportunity, and Forecast,
2018-2028 Segmented
By Type (Liquefaction Terminal, Regasification Terminal), By End User Industry
(Heavy-Duty Vehicles, Electric Power Generation, Marine Transport), By Region,
By Competition”, has evaluated the future growth potential of Global
Liquefied Natural Gas (LNG) Infrastructure Market and provides statistics &
information on market size, structure and future market growth. The report
intends to provide cutting-edge market intelligence and help decision-makers make
sound investment decisions., The report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities in the
Global Liquefied Natural Gas (LNG) Infrastructure Market.
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