Liquefied Natural Gas (LNG) Infrastructure Market Definition And Segments
Liquefied natural gas (LNG) infrastructure refers to the facilities and systems involved in the production, storage, transportation, and regasification of LNG. This infrastructure is used for several purposes, primarily revolving around the transportation, storage, and distribution of natural gas in its liquefied form.
The main types of liquefied natural gas (LNG) infrastructure are production infrastructure, transportation infrastructure, regasification infrastructure, distribution infrastructure, storage facilities, and others. Production infrastructure refers to the facilities and processes involved in extracting, processing, and liquefying natural gas for transportation and storage. It includes various production facilities, such as liquefaction plants, natural gas processing facilities, LNG storage tanks, and other production infrastructure, and is distributed through various pipeline networks and virtual pipeline solutions, as well end users also include heavy-duty vehicles, electric power generation, and marine transport.
The liquefied natural gas (LNG) infrastructure market covered in this report is segmented –
1) By Type: Production Infrastructure, Transportation Infrastructure, Regasification Infrastructure, Distribution Infrastructure, Storage Facilities, Other Types
2) By Production: Liquefaction Plants, Natural Gas Processing Facilities, LNG Storage Tanks, Others
3) By Distribution: Pipeline Networks, Virtual Pipeline Solutions
4) By End User Industry: Heavy-Duty Vehicles, Electric Power Generation, Marine Transport
The liquefied natural gas (LNG) infrastructure market size has grown rapidly in recent years. It will grow from $56.57 billion in 2023 to $64.85 billion in 2024 at a compound annual growth rate (CAGR) of 14.6%. The growth in the historic period can be attributed to growing natural gas demand, expanding global trade, technological advancements, regulatory support, geopolitical factors.
The liquefied natural gas (LNG) infrastructure market size is expected to see rapid growth in the next few years. It will grow to $112.06 billion in 2028 at a compound annual growth rate (CAGR) of 14.7%. The growth in the forecast period can be attributed to increased LNG bunkering for maritime transportation, expansion of small-scale LNG applications, rising demand for LNG as a fuel for heavy-duty vehicles, accelerated development of floating LNG (FLNG) facilities, growth in LNG-fueled power generation plants. Major trends in the forecast period include integration of renewable energy sources in LNG facilities, adoption of digital technologies for enhanced efficiency and safety, emergence of new LNG import and export markets, increasing investment in LNG liquefaction capacity, development of innovative liquefaction and regasification technologies.
Driving Forces Behind the Expansion Of LNG Infrastructure Meeting Surging Demand for Electricity Generation
Rising demand for electricity generation is expected to propel the growth of the liquefied natural gas (LNG) infrastructure market going forward. Electricity generation is the process of converting various forms of energy into electrical energy. The rising demand for electricity generation is due to the proliferation of electronic devices and appliances and, an increasing shift towards electric heating systems and air conditioning, necessitating more electricity generation. Liquefied natural gas (LNG) infrastructure provides flexibility in natural gas trading and pricing, allowing buyers to respond to changing market conditions and take advantage of price disparities. This flexibility can help stimulate demand by making natural gas more attractive compared to other energy sources. For instance, in July 2021, according to the International Energy Agency, a France-based government organization, electricity generation increased by 2.5% in 2022, which would take them to an all-time high. Additionally, coal-fired electricity generation will increase by 1% in 2021 to 2% in 2022. Therefore, the rising demand for electricity generation drives the liquefied natural gas(LNG) infrastructure market.
Major companies operating in the liquefied natural gas (LNG) infrastructure market are Chevron Corporation, China Harbour Engineering Company, Petronas Ltd., Vinci SA, Cheniere Energy Inc., Linde plc, Samsung C&T Corporation, Mitsubishi Heavy Industries (MHI), Bechtel Corporation, INPEX Corporation, Woodside, Novatek, Gazprom International Limited, Rosneft, Fluor Corporation, Anadarko Petroleum Corporation, Saipem S.p.A., John Wood Group PLC, Technip Energies, TechnipFMC, KBR Inc., Black & Veatch, Chiyoda Corporation, JGC Holdings Corporation, Petrofac Limited, Royal HaskoningDHV, Worley India Pvt. Ltd., National Iranian Oil Company, McDermott International, SENER
Focus on LNG Projects Driving Industry Growth
Major companies operating in the liquefied natural gas infrastructure market are focused on developing and investing in new LNG projects such as port arthur LNG project that support the growth and development of the natural gas industry. Port Arthur LNG project represents a major infrastructure development aimed at expanding LNG operations, creating jobs, boosting economic growth, and contributing to American energy security. For instance, in March 2023, Sempra, a US-based energy infrastructure company, launched the port arthur LNG project, a next-generation liquefaction facility that is expected to provide abundant, clean, reliable, and affordable U.S. natural gas to world markets. The proposed project includes two natural gas liquefaction trains and LNG storage tanks, as well as associated facilities capable of producing up to approximately 13.5 Mtpa of LNG, enabling the export of approximately 11 Mtpa of LNG on a long-term basis. Additionally, design changes to reduce the proposed LNG projects' overall emissions, including electric drives, renewable power sourcing, and other technological solutions.
Nebula Energy LLC Acquires Majority Stake in AG&P LNG
In January 2024, Nebula Energy LLC, a US-based investment and asset management company, acquired a majority stake in AG&P LNG for $300 million. Through this acquisition, Nebula Energy aims to accelerate the deployment of the LNG infrastructure ecosystem for downstream markets, bridging the gap between infrastructure/logistics and demand with advanced proprietary LNG technology and the ability to own and operate LNG assets in fast-growing markets. AG&P LNG is a United Arab Emirates-based liquefied natural gas (LNG) infrastructure company that develops and operates LNG terminals and downstream infrastructure and facilitates.
Asia-Pacific was the largest region in the liquefied natural gas (LNG) infrastructure market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the liquefied natural gas (LNG) infrastructure market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the liquefied natural gas (LNG) infrastructure market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The liquefied natural gas (LNG) infrastructure market consist of revenue earned by providing services such as LNG production facilities, transportation, storage facilities, regulation facilities, distribution pipelines, and LNG trucking and bunkering. The market value includes the value of related goods sold by the service provider or included within the service offering. The liquefied natural gas (LNG) infrastructure market also includes sales of storage tanks, LNG carriers, receiving terminals, monitoring systems, and safety systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The liquefied natural gas (LNG) infrastructure market research report is one of a series of new reports from The Business Research Company that provides liquefied natural gas (LNG) infrastructure market statistics, including liquefied natural gas (LNG) infrastructure industry global market size, regional shares, competitors with a liquefied natural gas (LNG) infrastructure market share, detailed liquefied natural gas (LNG) infrastructure market segments, market trends and opportunities, and any further data you may need to thrive in the liquefied natural gas (LNG) infrastructure industry. This liquefied natural gas (LNG) infrastructure market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.