The LNG Gas flow is projected to grow at a CAGR of 5.8% during the forecast period. The global LNG infrastructure market, following a continuous growth since 2016, is expected to grow during the forecast period as well. The global nominal liquefaction capacity increased by nearly 30 million tonnes per annum (MTPA) in 2018, as compared to 362 MTPA in 2017. Regasification terminal, on the other hand, stood at around 824 MTPA capacity during the 2018 end. The regasification infrastructure increased by 22 MTPA, with the highest capacity addition by China. The market drivers for LNG Infrastructure include the growing uses of natural gas in various sectors such as power, to have lower carbon emissions and the investments that the nations around the world are investing in having a cleaner environment. However, the alternative source of energy, such as nuclear energy production and renewable technology developments in various regions may act as a restraint for the market to grow during the forecast period.
- Regasification LNG Terminals is expected to dominate the market and with the addition of upcoming LNG regasification terminals in China and India, Asia-Pacific is expected to remain the dominant market in the LNG infrastructure market.
- As per the Energy Information Administration (EIA), non-OECD Asian countries like China, India, Bangladesh, Thailand, and Vietnam are expected to consume 120 billion cubic feet per day (bcf/d) of natural gas by 2050, outpacing regional natural gas production by 50 bcf/d. The supply imbalance in the region is likely to result in increasing dependency on the other regions, which is expected to create an opportunity for the LNG infrastructure companies to penetrate into these markets.
- Asia-Pacific is expected to dominate the LNG infrastructure market with the presence of both liquefication and regasification terminals. Countries such as Australia, Indonesia, and Malaysia have the highest capacity liquefication terminals, while Japan, South Korea, China, and India have the highest capacity infrastructure for regasification of LNG.
Key Market Trends
Regasification LNG Terminals to Dominate the Market
- During 2018, regasification terminals accounted for highest market share in the LNG infrastructure market. Regasification terminals cover nearly 67% of the total global LNG terminals capacity, with maximum terminal capacity terminals in Asia-Pacific. Regasification terminals are majorly built by the LNG importing countries. Asia-Pacific is the largest consumer of LNG in 2018 and has the highest capacity of LNG regasification terminals.
- In 2018, Japan, South Korea, China, and India dominated the region with a large capacity of LNG regasification terminals. With the addition of upcoming LNG regasification terminals in China and India, Asia-Pacific is expected to remain the dominant market in the LNG infrastructure market.
- The cost of LNG terminals varies depending upon the technology and location of deployment or installation. Generally, the capital expenditure of the LNG terminal normally costs around USD 180 million per million tonnes of LNG, while its operating cost varies from USD 90,000-100,000 per day.
- Apart from Asia-Pacific LNG regasification terminals, the addition of Panama’s first LNG regasification terminal (Costa Norte) in South America and Turkey’s Dortyol LNG regasification terminal are the key LNG projects that got commissioned during 2018.
Asia-Pacific to Dominate the Market
- During 2018, the Asia-Pacific region dominated the LNG infrastructure market, with nearly 150 MTPA liquefication terminal and more than 450 MTPA regasification terminals. Japan and Australia are the leading countries within the region, with 24% of the global regasification capacity, and 19% of the global liquefication capacity, respectively.
- The addition of Wheatstone LNG and Gorgon LNG in Australia are the prominent LNG infrastructure that was added up to the liquefication infrastructure during 2018. Moreover, the region has added five new LNG regasification terminals, including three in China, one in Japan and one in Bangladesh.
- BHP Billiton, BP, Chevron, Shell, Woodside, Mitsubishi, Mitsui, Qatar Petroleum, ExxonMobil, TOTAL, and Marubeni are the prominent liquefaction players in Asia-Pacific. At the same time, Tokyo Electric Power Company (TEPCO), Tokyo Gas, Toho Gas, Korea Gas Corporation (KOGAS), Petronet LNG, China National Oil Offshore Company (CNOOC), and Chubu Electric are the prominent players for regasification players in the region.
The LNG Infrastructure Market is fragmented. The key players in the LNG infrastructure market include JGC Holdings Corporation, Chiyoda Corporation, Bechtel Corporation, Fluor Corporation, McDermott International Inc., and Saipem SpA.
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