Global Liquefied Natural Gas Market by Application (Power Generation, Transportation Fuel) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global liquefied natural gases market demand was 356.06 millions tons in 2019. It is projected to increase at a compound annual rate (CAGR), of 5.8% between 2020 and 2027. The industry's growth is driven by rapid growth in pipeline infrastructures, favorable government regulations, rising natural gas demand from downstream industries, as well as fluctuating oil prices. The forecast period will see a growing focus on infrastructure support in both developing and developed countries. This is expected to drive liquefied natural gases (LNG) demand. The market growth will be impeded by the lack of pipeline infrastructure in remote areas. In the coming years, the market will be subsidized by increasing industrialization and urbanization.

The growth trends for LNG are lower than expected, and new infrastructure and production projects will be in place. This should support the potential for low prices and excess capacity. This gives a glimpse into the future finances that will be required to ensure the security and renewal of supply in the region.

Over the past 10 years, the US NG industry has seen a dramatic transformation with prices falling by half and production increasing by almost 50%. The key driver of the current energy revival is the remarkable success in extracting unconventional gas. This includes the Marcellus and Utica shale plays in Appalachia. Eastern Canada has been able to receive more imports from America and the Cove Point liquefied gas export facility at Maryland. The U.S. will have to continue to build a new liquefied gas export industry by producing gas at low prices. This will be possible by financing additional capital for exploration and drilling more wells, but also by exploring new technologies and optimizing operational efficiencies.

The United States shale, large-scale conventional projects in Russia and the Middle East are some of the key drivers of future LNG supply growth. These are also under pressure due to recent oil price declines and uncertainty about demand trends over the short and medium term. In North America, Russia and Africa, the increase in investments in liquefied gas projects in 2018 and 2019 has resulted in increased export capacity. A slower growth of global gas demand over the next years will result in capacity exceeding LNG imports in future, and mitigating the risks of a tight market for liquefied natural gases.

The traditional market has been somewhat challenging for liquefied gas suppliers, who are now following the 2nd Tier market, which is those that have a lower or intermittent year-round demand and smaller balance sheets. These regions have seen a rise in trade within the Middle East, Southeast Asia and the Caribbean. This is allowing them to expand their market for liquefied gas and also providing opportunities for small-scale supplier expansions.

2020's 1 ^firstquarter proved to be difficult for LNG and natural gas producers. Last year, the low gas price prevailed through the fourth-quarter. Global gas prices fell due to the increase in exports of liquefied natural gases from the Northern Hemisphere. Markets around the world began to declare country lockdowns to stop the spread of the virus. This bearish attitude was maintained through February and March.

Application Insights

The market can be divided by application type into transportation fuel, power generation and others. In 2019, the largest volume share was held by power generation, which accounted for 47.1%. The growing popularity of liquefied petroleum gas in transportation fuel is responsible for the segment's 47.1% volume share in 2019. Liquefied natural gas fuel vehicle systems carry NG to the engine at the required pressure. This allows for maximum fuel density and fuelling stations. These elements are expected to fuel the demand over the forecast period.

Liquefied natural gases continue to play a vital role in power generation, mining and industrial sectors. NG is a vital feedstock that generates power across many industries. This will have a huge impact on the transportation sector's emissions.

Due to its lower environmental impact, NG has a growing demand. This makes it highly beneficial for the environment. The historical period has seen a marked shift in the usage of NG in the power generation, mining and industrial sectors. The industry is experiencing a decline in fuel switching costs and prices that have lowered, which has helped to increase its growth in transportation and power generation.

Due to rapid growth in LNG infrastructure development, India, Japan, China, and other countries, peak demand is likely to occur. There are also increasing awareness about the many benefits of eco-friendly products across a variety of end-use industries. These markets are also attractive for foreign investors and companies that have favorable regulations.

Regional Insights

In 2019, Asia Pacific accounted for 41.3% of the highest revenue share. Australia is a major exporter of liquefied petroleum gas. It has large projects in Queensland, Western Australia and elsewhere. Due to the dramatic drop in LNG prices, sometimes these projects have been subject to planning pressure and high costs. This has made them difficult for developers and operators.

The energy mix of South Korea, Japan and Japan will be affected by the rising demand for nuclear power plants in Eastern Asia. Due to infrastructure development, India will continue to be an attractive destination for manufacturers and exporters. More than 30% of the new LNG supply capacity are under construction, and will be online by 2025.

The European Union has grown its dependence on gas imports. As such, it is working with U.S. producers to find an overseas market for LNG. Russia is a major exporter and a dominant player in the LNG market. One of Russia's companies can export fuel from remote locations to other countries via pipeline infrastructure or other means.

Global LNG import increased by more than 12% in the first nine months of 2019. China saw a 14-16% increase in LNG imports in 2019. Other countries, such as Egypt, Mexico, and China, are embarking on significant restructurings. They invite more private partners in supply, marketing and transportation chain and familiarize themselves with third-party access to LNG infrastructure.

In the next few years, India will be the region with the fastest growth rate. The country's prime energy consumption is only 4-5%, leaving ample room for growth. The country's robust economic growth is also driving higher gas-based power facility consumption, which has a wider market application. These factors will likely increase the market demand for liquefied gas.

Market Share Insights & Key Companies

Due to the concentration of companies and high competition, the global LNG industry is highly competitive. This market will be competitive if there are significant application developments. As a way to diversify product lines and increase market share, the industry will likely see a lot of mergers and acquisitions. The following are some of the major players in the liquefied gas market:

• Total

• Chevron Corporation

• Exxon Mobil Corporation

• Petronet LNG Limited

• China National Petroleum Corporation

• Petroliam Nasional Berhad (PETRONAS)

• Snam SPA

• PetroChina Company Limited

• Royal Dutch Shell

• BP

• Equinor ASA

• Gazprom

• China Petroleum & Chemical Corporation

• Eni SpA

• ConocoPhillips Company

Up Market Research published a new report titled “Liquefied Natural Gas Market research report which is segmented by Application (Power Generation, Transportation Fuel), By Players/Companies PetroChina Company Limited, Petroliam Nasional Berhad (PETRONAS), China National Petroleum Corporation, Exxon Mobil Corporation, Snam SPA, Petronet LNG Limited, China Petroleum & Chemical Corporation, Gazprom, ConocoPhillips Company, Total, Royal Dutch Shell, Chevron Corporation, BP, Eni SpA, Equinor ASA”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Liquefied Natural Gas Market Report Segments:

The market is segmented by Application (Power Generation, Transportation Fuel).

Liquefied Natural Gas Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Liquefied Natural Gas Market

Overview of the regional outlook of the Liquefied Natural Gas Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Liquefied Natural Gas Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Liquefied Natural Gas Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Power Generation

                2. Transportation Fuel

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Liquefied Natural Gas Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Liquefied Natural Gas Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.