The Small Scale LNG market is growing at XX% CAGR and is expected to reach USD XXX by 2020 from USD XXX in 2015.
The small scale LNG Market is specially targeted in the places where there is less production of the LNG and does not require large LNG liquefaction plants. The small scale LNG plant with a capacity less than 1 MPTA can be constructed within 3 years, compared to the large scale LNG Liquefaction Plant, which can take up to 10 years and high capital expenditure (CAPEX) and Operating expenditure (OPEX). Also, the ability to enjoy the profits in a short time is another driver for the decision to build small scale plants. Capital expenditure (CAPEX) requirements are significantly lower for Small scale LNG plants, but on cost per ton annual basis, these Small scale LNG plants are not in competitive pricing compared to that of the large scale LNG plant. So, the measures are also taken for small scale LNG plants to reduce the operational expenditure (OPEX) by the use of unmanned facilities and multi-disciplinary skilled employees.
The economic impact and the benefits created by the small scale LNG are in various ways through the investments in the small scale LNG infrastructure, vessels, trucks market. With the change in the mindset and the change in the policies, the truck owners will invest in the new LNG trucks and the ship owners will invest in the new carrier vessels. On the other hand, the cost for converting an existing vessel to LNG vessel is high, but due to the strict emission regulations on the bunkering fuel used by existing vessels, the operators are paying the premium and balancing their existing fleet.
Small scale LNG plants are used in targeting the small gas fields, other than that, they are also used as peak shaving systems. These peak shaving plants liquefy the gas, store it and regasify it according to the demand. They are help in shortening the distances from their customers. The satellite stations, which are used for gas storage, peak shaving and delivery points gives advantage for the Small Scale LNG Supply chain.
With the increase in the benefits, the LNG is increasingly used in the onshore transportation, compared to Diesel, considering that the LNG has low carbon foot print. Many countries across the world are moving towards the usage of LNG for transportation vehicles. In this segment, China and USA are leading by offering the LNG fuelling services t