Small Scale Liquefied Natural Gas (LNG) Market Forecasts to 2030 - Global Analysis By Supply Chain Component (Liquefaction, Transportation, Storage and Regasification), Mode Of Supply, Storage, Infrastructure, Application and By Geography

According to Stratistics MRC, the Global Small Scale Liquefied Natural Gas (LNG) Market is accounted for $10.85 billion in 2024 and is expected to reach $18.94 billion by 2030 growing at a CAGR of 12.3% during the forecast period. Small Scale Liquefied Natural Gas (LNG) refers to the process of liquefying natural gas in smaller quantities, typically for localized distribution or niche applications. These facilities cater to regions with limited infrastructure or transportation access, enabling more flexible and cost-effective distribution of natural gas for power generation, transportation fuel, and industrial use, thereby expanding access to clean energy in various sectors.

According to Shell LNG Outlook 2024, as of 2023, there were 469 LNG-fuelled vessels in operation, and 537 LNG-fuelled vessels were on order.

Market Dynamics:

Driver:

Increasing emphasis on cleaner energy sources

LNG is recognized as a cleaner alternative to traditional fossil fuels due to lower carbon emissions. As nations strive to reduce their carbon footprint and transition towards more sustainable energy solutions, there's a growing demand for LNG as a cleaner fuel for power generation, transportation, and industrial processes, consequently driving the expansion of small-scale LNG infrastructure to meet these needs. Therefore, the increasing emphasis on cleaner energy sources, driven by environmental concerns and regulatory measures, is propelling the growth of the market.

Restraint:

Uncertainties in project financing

Uncertainties in project financing for small scale LNG projects stem from various factors such as volatile energy prices, regulatory uncertainties, and investment risks. Limited access to financing due to perceived project risks, long payback periods, and capital-intensive nature hampers market growth. This lack of financing impedes the development of small-scale LNG infrastructure, constraining the market's ability to meet growing demand for cleaner energy solutions in diverse sectors.

Opportunity:

Expansion of LNG infrastructure

Increasing investment in liquefaction plants, storage facilities, and distribution networks enhances the accessibility and availability of LNG to diverse markets. This expansion lowers logistical barriers and enables more efficient and cost-effective transportation of LNG to remote or underserved regions. Additionally, the development of LNG bunkering facilities and small-scale regasification terminals supports the adoption of LNG as a cleaner fuel in maritime transport and remote industrial applications, further driving market growth.

Threat:

Supply chain challenges

Supply chain challenges in small scale liquefied natural gas (LNG) arise due to the complex logistics involved in LNG transportation, storage, and distribution. Limited infrastructure for LNG handling and transportation, coupled with the need for specialized equipment and facilities, increases operational complexities and costs. These challenges can lead to supply chain bottlenecks, delays, and higher operational expenses, thereby hampering market growth.

Covid-19 Impact

The covid-19 pandemic has had a mixed impact on the small scale liquefied natural gas (LNG) market. While the demand for LNG remained relatively resilient due to its role in power generation and as a cleaner fuel alternative, the market faced challenges related to project delays, supply chain disruptions, and financing difficulties. Uncertainties surrounding economic recovery and energy demand fluctuations also affected investment decisions in small-scale LNG infrastructure. However, the pandemic has also underscored the importance of flexible energy solutions, potentially driving future growth opportunities in the small-scale LNG market.

The trucks segment is expected to be the largest during the forecast period

The trucks segment is estimated to have a lucrative growth. Trucks serve as a crucial mode of supply, facilitating efficient transportation of LNG to remote areas and industries lacking pipeline infrastructure. This method offers flexibility, enabling timely delivery to diverse locations. Truck-mounted LNG tanks ensure safe and reliable transport, contributing to the accessibility and viability of LNG as a clean energy alternative. Such logistics solutions play a pivotal role in the development of small-scale LNG markets globally.

The power generation segment is expected to have the highest CAGR during the forecast period

The power generation segment is anticipated to witness the highest CAGR growth during the forecast period, due to its efficiency and environmental benefits. LNG-fuelled power plants offer a cleaner alternative to traditional fossil fuels, reducing emissions and improving air quality. These smaller-scale facilities are particularly advantageous for remote or off-grid locations, providing reliable electricity generation where traditional infrastructure is lacking. LNG's versatility and compatibility with power generation systems contribute to its growing popularity in this sector.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period. The region's increasing demand for cleaner energy sources, coupled with efforts to reduce carbon emissions, has led to a rising interest in small-scale LNG projects. Countries like China, India, and Southeast Asian nations are investing in LNG infrastructure to meet their energy needs and enhance energy security. Additionally, the development of LNG bunkering facilities to support maritime transportation and the establishment of LNG distribution networks are further boosting the small-scale LNG market in the Asia Pacific region.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, driven by factors such as increasing demand for cleaner energy sources, technological advancements, and favourable government policies promoting LNG adoption. The region's abundant natural gas reserves and robust infrastructure further bolster market expansion. Key players are focusing on strategic collaborations, innovations in liquefaction technologies, and expanding distribution networks to capitalize on the burgeoning opportunities in North America's small-scale LNG market.

Key players in the market

Some of the key players profiled in the Small Scale Liquefied Natural Gas (LNG) Market include Schlumberger, Honeywell International Inc., Baker Hughes GE, Wipro Limited, Wartsila, Linde Plc, Nuverra, Patterson-UTI Energy, Chevron, ExxonMobil, Sempra Energy, Mitsubishi Corporation, Teekay LNG Partners, NextDecade Corporation, Tellurian Inc., Gasum, Skangas, IGX India and Elengy.

Key Developments:

In April 2024, Indian Gas Exchange (IGX) has launched contracts of small-scale liquefied natural gas (ssLNG) on its platform after it received approval from the Petroleum and Natural Gas Regulatory Board (PNGRB). This move marks a significant step towards addressing the demand of natural gas in areas that are not connected to the national gas grid.

In November 2023, Elengy, a unit of Engie's GRTgaz, established a new small-scale LNG carrier loading service at its Fos Tonkin terminal on France's Mediterranean coast. The terminal offers 18 loading slots per year for small scale LNG vessels of a capacity up to 40 000 m3, under maximum conditions of safety, reliability and performance. These capacities will be available on a "first come first served" basis.

Supply Chain Components Covered:

• Liquefaction
• Transportation
• Storage
• Regasification

Mode Of Supplies Covered:

• Trucks
• ISO (International Organization for Standardization) Containers
• Small LNG Ships
• Rail
• Barges
• Other Mode Of Supplies

Storages Covered:

• Above-ground Tanks
• Underground Tanks

Infrastructures Covered:

• Regas Facilities
• Storage Hubs
• Truck Fuelling Stations
• Truck-To-Ship Bunkering Terminals
• Other Infrastructures

Applications Covered:

• Power Generation
• Industrial Fuel
• Transportation Fuel
• Residential & Commercial Heating
• Bunkering
• Industrial Feed Stock
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances