Liquefied Natural Gas Market Size Analysis:

The Liquefied Natural Gas (LNG) Market size was valued at USD 109.56 billion in 2022 and is expected to grow to USD 205.81 billion by 2030 and grow at a CAGR of 8.2 % over the forecast period of 2023-2030.

Natural gas is chilled to a temperature of -1620°C to create liquefied natural gas, which is an odourless and colourless liquid. Gas volume is reduced by 600 times during the liquefaction process, making storage and transportation easier. When liquefied natural gas arrives at its destination, a procedure known as regasification is used to turn it back into gas delivered by pipelines and boats to final users. Due to, liquefied natural gas is a growing fuel. Compared to petrol, diesel, and other fuels, it burns the cleanest. Home heating, electric power generation, the production of chemicals and fertilisers, as well as the refuelling of trucks, cruise ships, cargo ships, and other vehicles are all uses for liquefied natural gas. Long-term gas storage reserves were made possible by the development of large-scale cryogenic storage. These liquefied gas reserves are the primary way for networks to accommodate peak local demand. Natural gas is typically transported and stored using LNG from a source to a destination. The use of LNG as a fuel for transportation is probably going to become widespread. It is now being assessed for applications in over-the-road haulage, off-road travel, maritime travel, and train travel.

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MARKET DYNAMICS

KEY DRIVERS:  

• Rising demand for clean energy source

• Liquefaction capacity is increased

• Developing sustainable energy sources

It burns cleaner than petrol and diesel, liquefied natural gas is a newly popular fuel. Over the forecast period, key factors including rising global natural gas liquefaction capacity, government initiatives to strengthen gas pipeline infrastructure, and rising demand for a clean energy source from a number of end-use industries are anticipated to fuel the growth of the global liquefied natural gas market.

RESTRAIN:

• Highly fluctuating

• High cost

• Remote areas with inadequate pipeline infrastructure

OPPORTUNITY: 

• Commercializing Natural Gas

• Developing new innovations

CHALLENGES:

• Dealing with country-specific laws and regulations

• Due to its greater dependence on oil prices, the liquefied natural gas market is particularly volatile.

Due to its greater reliance on oil prices, the market for liquefied natural gas is particularly volatile. In emerging economies, the spot price of liquefied natural gas is typically determined by an oil connection. The absence of global regulations governing LNG uses is also limiting industry expansion. Each nation has its own regulations governing the use of LNG. Key companies in this industry find it challenging to deal with these country-specific laws and regulations. This is preventing investment from entering the market, which is limiting market expansion.

IMPACT OF RUSSIA-UKRAINE WAR

The Russia-Ukraine conflict is resetting the energy industry, with natural gas becoming a global and linked market that is impacted by dynamics and events that go well beyond its conventional physical limitations, something akin to what oil was for decades. A diverted LNG cargo in the US, a drying river in China, or tensions over Taiwan may all influence the price of gas in Europe, which was formerly practically isolated and heavily reliant on pipeline flow dynamics between Russia and Norway. This has further expedited the globalisation of the petrol market, with experts and market participants increasingly referring to it as the "new oil," notably referencing its geopolitical character because petrol is traded quite widely.

KEY MARKET SEGMENTATION

By Application

• Transportation Fuel

• Power Generation

• Others

REGIONAL ANALYSIS

The Asia Pacific region's revenue share was the highest growth in 2021. Japan had the highest country-level demand and is anticipated to expand significantly throughout the projection period. Gas in the energy mix only makes up 4% to 5% of the primary energy used in the nation, leaving room for improvement. more gas-based power plants are being used, which has expanded their market potential.

In North America, Mexico had the biggest demand, followed by the United States, and is anticipated to expand at the fastest rate, with a market share of 71.01% throughout the projection period. Shale gas deposits are present in the United States, and the government's increased emphasis on incorporating renewable energy sources into the country's energy mix is what is causing the strong demand for LNG. Shale gas deposits exist in Canada in Alberta, British Columbia, Manitoba, and Saskatchewan.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

RECENT DEVELOPMENTS

• In an effort to establish itself as a Centre for less expensive and cleaner fuel in the area, Ghana is planning to launch the first liquefied natural gas-to-power plant in sub-Saharan Africa in January 2021.

• A second unit of the USD 10 billion liquefied natural gas project on the Gulf Coast of Louisiana, operated by a Sempra Energy subsidiary based in San Diego, was successfully launched in December 2019. This unit will shortly export natural gas to markets across the world.   

• In May 2022, Venture Global LNG inked two long-term contracts to provide ExxonMobil LNG Asia Pacific (EMLAP), a registered business name of ExxonMobil Asia Pacific and a subsidiary of ExxonMobil, a U.S. company, with liquefied natural gas (LNG). Venture Global will provide ExxonMobil LNG Asia Pacific with two million tonnes of LNG annually (Mtpa) under these new sales and purchase agreements (SPAs). The Plaquemines LNG project and the CP2 LNG facility will both provide 1 Mtpa to the ExxonMobil subsidiary.

KEY PLAYERS

The major Players are British Petroleum (BP) p.l.c., Chevron Corporation, China Petroleum & Chemical Corporation, Eni SpA, Equinor ASA, Exxon Mobil Corporation, Gazprom Energy, PetroChina Company Limited, Royal Dutch Shell PLC, Total S.A. and other players.

Chevron Corporation-Company Financial Analysis