Small Scale LNG Market to Grow at 2.5% to 2022
The Global Small Scale LNG Market is expected to grow over the CAGR of around 2.5% during the period 2014 to 2022, says a report by Market Research Future.
The growth of the Small Scale LNG Market is majorly driven by increased demand for energy in the Asia-Pacific region. The government initiatives that focus on providing cleaner fuel, is driving the market, especially in countries such as India and China.
The market is further driven by the growing adoption of LNG for heavy duty transportation purposes in the Europe and North American regions. However, the growth of this market can be restrained by the extensive investment required to construct LNG storage plants and fluctuation in global gas market prices.
The Key Players in market are Public Joint Stock Company Gazprom (Russia), Engie SA (France), and The Linde Group (Germany), Honeywell International Inc. (U.S), General Electric (U.S), Skangas AS (Norway).
Asia-Pacific is expected to be the largest market for LNG, especially because of countries such as China and India in the region.
For providing power in remote locations, LNG is increasingly used because of its clean and low emission properties that are further supported by government commitments to change to LNG based economies. These countries are increasingly investing in LNG infrastructure and there is adequate availability of LNG through subsidized schemes and distribution network.
Europe and the North America regions are investing heavily for developing the LNG gas infrastructure. In Europe, there has been significant increase in demand for LNG, especially in countries such as UK, France and Italy.
Continuous adaptation from countries to switch to cleaner fuels for power generation and in transportation sector is essentially driving the growth of LNG market in the region. New climate change regulations and requirement by transport authorities to reduce carbon emissions from fleet operations, are driving the use of LNG.