The global LNG market is projected to grow at a CAGR of 7.57% between 2025 to 2030.
LNG is the acronym for Liquefied Natural gas which is made after the transformation of organic materials like algae and plankton, for a long period of time. Natural gas consists of 95% of methane which is one of the cleanest fossil fuels available. One of the key advantages that has been driving the market for LNG over the years is its ability to emit lower amounts of CO2 which is about 30% to 50% less than emitted by other combustible fuels.
Furthermore, natural gas is one of the lightest hydrocarbons consisting of one carbon atom for 4 hydrogen atoms the combustion of which does not generate soot, dust, or fumes with a significant level of reduction in the nitrogen oxide (N0x) emissions and very low sulfur dioxide (SO2) emissions which has further led to an increase in the demand of LNG across several countries. The market for LNG is expected to be also driven by a significant number of governmental relaxations and investments which has led to developments taking place in the transport infrastructure of the gas as well. The rise in awareness about the benefits of LNG has been a catalyst for the market.
A key factor driving the market for LNG is the rise in the demand for gas for various industrial applications including construction & dairy products, furnaces, fluid bed dryers, food processing, manufacturing, mining, power generation sector, and others. Furthermore, the dynamism in the prices of oil has pushed the demand for LNG in several countries due to which a significant amount of investments are being made for the production of LNG to cope with its demand and also to develop the transport infrastructure.
The growing industrialization and urbanization have led to the inclination for more efficient and cleaner fuels for applications.
The segmentation of the global LNG market has been done into application and geography. By application, the classification of the market has been done into Power Generation, fertilizers, Petrochemicals, Utilities, Manufacturing, and Transportation fuel. Furthermore, on the basis of geography, the global market has been distributed as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
The growth of the LNG market is fuelled by a significant increase in the number of investments done in the sector by various organizations which have led to substantial growth of the production as well as transport infrastructure of the gas due to which the prices of the gas have become cheaper. Given the dynamism in the prices of oil across the world, there has been a significant shift towards the use of LNG for various purposes like transportation fuel or for power generation purposes. For instance, the Asian LNG market has been significantly driven by developments and ongoing investments in the sector in countries such as China and India. According to a conference held in New Delhi, India in the year 2020, the country is expected to witness an investment of INR 10,000 Cr in the next three years in the LNG sector. The gas has a higher energy density than CNG which is currently one of the most preferred fuels in the country. According to the report on the conference, the investment includes opening up more than 1000 LNG stations in the private as well as the public sector.
The market for LNG will also be driven by a significant amount of investments done in the sector by the Canadian government. A major liquefied natural gas (LNG) complex is under development in Kitimat, British Columbia. According to a report by the Ministry of Innovation, Science and Economic Development, the plant is expected to receive an investment of about US$ 275 Million from the ministry. The complex is worth US$40 billion making it one of the biggest complexes present in the country. According to the report, the investment made is one of the highest private sector investments in history. The investment includes US$220 Million for the development of the infrastructure used for the gas in order to make highly efficient gas turbines for LNG in Canada which is further expected to minimize the emissions of greenhouse gases. The other US$ 55 Million of the investments is made in order to replace the Haisla Bridge in the District of Kitimat to support and manage the increased level of traffic in the region.
The market is expected to witness a significant increase during the forecast period owing to the increasing dynamism in the oil prices which has led to increasing demand for LNG in several countries. The countries that already have a presence of LNG stations are working on developing a more innovative, safe, and cost-efficient way for the transportation of LNG across different areas. Moreover, the market is significantly driven by the increasing demand from the countries where the source has been recently introduced like India, wherein a substantial amount of investments are being made to develop the transport and production infrastructure from scratch.
The players in the global LNG market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along the recent deals and investments of these important players in the market.
LNG Market Segmentation:
Updated on: Jan 9, 2025