Global LNG Market Poised for Growth, Aiding Environmental Goals and Energy Needs – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Global LNG Market: Analysis By Demand, By Supply, By Trade, By Import, By Export, By Region Size and Trends and Forecast up to 2028” report has been added to ResearchAndMarkets.com’s offering.

This comprehensive report offers insights into the dynamic LNG (Liquefied Natural Gas) market, highlighting its current status, growth drivers, challenges, and emerging trends.

Market Overview

In 2022, the global LNG market’s supply reached 414.52 million tonnes per annum, while the trade volume reached 405.49 million tonnes per annum. LNG, derived from natural gas, is an environmentally friendly and versatile energy source. It plays a crucial role in the global energy landscape, serving as a cleaner alternative to traditional fossil fuels for power generation, heating, and transportation. Furthermore, LNG enables access to natural gas resources worldwide.

Several countries are turning to LNG as a cleaner alternative to coal and oil for power generation and heating. This shift is driven by environmental concerns and emissions reduction targets. The development of LNG import infrastructure, such as regasification terminals and distribution networks, has facilitated global access to LNG. The market is poised to witness a wave of new projects coming online, particularly starting in mid-2025. Liquefaction operators and investors are fast-tracking capacity expansion plans and optimizing existing floating units. Consequently, the global LNG market has been growing, a trend expected to continue. LNG demand is projected to grow at a CAGR of 3.72% during the forecast period from 2023 to 2028.

Market Segmentation

The global LNG market is segmented based on supply, demand, trade, import, and export:

Supply: The global LNG supply is expected to rise in the coming years due to various factors, including the development of new LNG export facilities, advances in liquefaction technology, increased natural gas production, and expansion of LNG trade networks. Growing demand for cleaner energy sources, particularly in Asia, incentivizes higher LNG production to meet energy needs and emissions reduction goals.

Demand: LNG demand has been on the rise, driven by the maritime industry’s adoption of LNG as a cleaner marine fuel, in compliance with stricter emissions regulations. Rapid industrialization and urbanization in emerging economies, particularly in Asia, have increased energy consumption, further boosting LNG demand across various applications.

Trade: LNG trade witnessed significant growth, with Europe contributing significantly in 2022. As of April 2023, global LNG trade connects 20 exporting markets with 48 importing markets, including new LNG importers like Germany and the Philippines. LNG exports have also increased in recent years, primarily due to abundant natural gas reserves in the US and Australia, leading to a surge in LNG production capacity.

Import and Export: Japan dominates the global LNG import market, while Australia leads in LNG exports. China’s LNG imports are expected to recover in 2023, primarily due to increased long-term contract volumes. Additionally, long-term LNG supply contracts play a crucial role in the LNG market, providing stability and predictability for both buyers and sellers.

Regional Analysis

Asia Pacific holds the largest share of the LNG market, with China’s ongoing investment in regasification capacity and long-term supply contracts from Qatar and the US indicating its commitment to LNG growth. In Europe, LNG demand surged during the Russia-Ukraine conflict, with potential for further growth in 2023 as Europe adjusts to a decline in Russian pipeline gas shipments.

Market Dynamics

• Growth Drivers: The global LNG market is supported by various growth drivers, including liquefaction capacity development, increasing regasification capacity, rising energy consumption, greenhouse gas emissions reduction goals, favorable government initiatives, and growing demand from the maritime sector. Expanding liquefaction capacity ensures a consistent supply of natural gas, enhancing energy security for countries dependent on imports.
• Challenges: The market faces challenges such as price volatility, competition from renewable energy sources, and high infrastructure costs.
• Trends: The market is expected to grow rapidly due to trends like increasing new LNG projects, growing long-term sale and purchase agreements (SPA) signings, rising demand for green energy, digitalization and automation, and the adoption of lower emission LNG technologies.

Competitive Landscape

The global LNG market is concentrated, with a few players operating globally. Key players include Chevron Corporation, Shell plc, ExxonMobil Corporation, TotalEnergies SE, QatarEnergy, BP plc, Woodside Energy Group Ltd., ConocoPhillips, Inpex Corporation, Equinor, Cheniere Energy, Inc., and China National Petroleum Corp (CNPC). These companies are engaged in various strategies, including technological advancements and capacity expansions, to maintain their market positions.

For more information about this report visit https://www.researchandmarkets.com/r/oyh4vm

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