APAC LNG infrastructure Industry Overview
|Study Period:||2019 - 2028|
|CAGR:||> 6.5 %|
*Disclaimer: Major Players sorted in no particular order
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APAC LNG infrastructure Market Analysis
The Asia Pacific LNG infrastructure market is projected to register a CAGR of over 6.5% during the forecast period (2022-2027).
The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.
- Increasing demand for LNG in bunkering, road transportation, and off-grid power sectors, along with lower CAPEX requirements for LNG, is expected to drive the growth of the market studied.
- On the other hand, nuclear energy production and renewable technology developments in various regions are major restraints for the market.
- Nevertheless, 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 regard ions, which is expected to create an excellent opportunity for the market players in the forecast period, as these projects are paving the way for the line pipe industry to grow more.
- China region dominates the market and is also likely to witness the highest CAGR during the forecast period. The LNG import was around 12 million tons in 2020, which increased to 79 million tons in 2021. Due to this surge in demand, China became the world’s largest LNG importer, surpassing Japan. The increased demand is due to Chinese LNG buyers signing long-term contracts for more than 20 million tons a year.
APAC LNG infrastructure Industry Segments
LNG is natural gas that has been cooled to a liquid state, at about -260° Fahrenheit, for shipping and storage. The volume of natural gas in its liquid state is about 600 times smaller than its volume in its gaseous state. This process makes it possible to transport natural gas to places pipelines do not reach. The LNG infrastructure market is segmented by type and region. By type, the market is segmented into regasification terminals and liquefication terminals. The report also covers the market size and forecasts for the LNG infrastructure market across major countries. for each segment, the market sizing and forecasts have been done based on revenue (USD billion).
|Rest of Asia Pacific|
APAC LNG infrastructure Market Trends
This section covers the major market trends shaping the APAC LNG infrastructure Market according to our research experts:
Regasification terminal Segment to have a Significant Share in the Market
- The regasification terminal segment is expected to have a significant market share during the forecast period. Regasification terminals cover nearly 67% of the total global LNG terminal capacity, with maximum terminal capacity terminals in Asia-Pacific.
- Gas can be transported as liquified natural gas for long-distance transport or in situations without access to natural gas pipes. Due to its volume being reduced by around 600 times compared to a gaseous state, natural gas is frequently transported and stored in a liquid form. The gas condenses and turns into a liquid when it is cooled to about -162°C. Regasification is the process of heating a liquified gas to return it to its gaseous condition.
- Many city gas distribution companies in India plan to develop CNG or satellite stations. Moreover, the Government of India plans to add fueling stations along its 6,000-km-long golden quadrilateral highways to build an effective ecosystem for LNG-fueled vehicles. This will likely increase the demand for LNG regasification terminals to ensure an uninterrupted gas supply for transportation applications.
- Natural gas LNG importr in Asia pacific grew from 226.6 billion cubic metres in 2012 to 371.8 billion cubic metres in 2021, a 6% increases.
- Hence, owing to the above points, increasing investment in LNG infrastructure will drive the market during the forecast period.
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China fastest growing region in the LNG infrastructure market
- In 2021, China is one of the major countries in the world, which led to the growth in LNG demand. In 2020, there were about 94 billion cubic metres tons of natural gas LNG imported; in 2021, there were 109.5 billion cubic metres tons. China surpassed Japan to become the world's biggest LNG importer as a result of this spike in demand. Due to Chinese LNG purchasers signing long-term contracts for more than 20 million tons annually, demand has surged.
- Increasing demand for LNG is from industrial, residential, and power generation sectors, with the highest potential in the transportation sector. In 2020, China had around 113 thousand units of LNG trucks. With a growing focus on having an alternate low carbon emission fuel for heavy truck transportation, LNG as a fuel would be the best substitute for diesel-fueled engines. Growth in the number of LNG trucks due to the higher price of diesel, as compared to natural gas, and increasing investment in LNG infrastructure will drive the market during the forecast period.
- In December 2021, Pavilion Energy, a Singapore-based energy solutions provider, and Zhejiang Hangjiaxin Clean Energy entered a deal to supply a small-scale LNG under which the former company is expected to provide 0.5 million tons per year of LNG to Hangjiaxin from 2023.
- With the increasing adoption of natural gas over coal for power generation, prominent players and small power project companies with no access to remote locations or pipeline facilities are expected to import LNG. They have been showing interest by investing in LNG facilities. The LNG receiving terminals in China are expected to increase with the growing share of LNG in the power sector. Several small power plants near the Yangtze River import LNG directly from small vessels and use them for power generation. China is anticipated to import about 25 MTPA of LNG by 2030.
- Natural gas LNG imported in China from 2012 to 2021 is 20.1 billion cubic metres to 109.5 billion cubic metres i.e 20.6% increases.
- Hence, owing to the above points, China is expected to see significant growth in the LNG infrastructure market during the forecast period.
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APAC LNG infrastructure Market Competitor Analysis
The Asia Pacific LNG infrastructure market is fragmented. Some of the key players in this market (in no particular order) include JGC Holdings Corporation, Chiyoda Corporation, Bechtel Corporation, Fluor Corporation, and Chevron corporation.
APAC LNG infrastructure Market Top Players
JGC Holdings Corporation
*Disclaimer: Major Players sorted in no particular order
APAC LNG infrastructure Market Recent Developments
- In June 2022, NOVATEK signed small-scale LNG cooperation agreements with the Moscow and Samara region's government, as part of the St. Petersburg International Economic Forum. The parties are looking to expand the use of LNG as motor fuel and for gas supply to off-grid customers, including the construction of small-scale LNG plants and relevant sales infrastructure.
- In April 2021, INOXCVA, an Indian multinational cryogenic liquid storage, distribution, and re-gas solutions provider, signed a memorandum of understanding (MOU) with the Japanese conglomerate, Mitsui & Co. (Asia Pacific) Pte. Ltd, for establishing a virtual pipeline in India and deploying small-scale LNG infrastructure, including logistics and receiving facilities at the customer’s end, to provide access to LNG.
APAC LNG infrastructure Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Force Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Regasification Terminal
5.1.2 Liquefication Terminal
5.2.5 South Korea
5.2.6 Rest of Asia Pacific
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers, Acquisitions, Collaboration and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 JGC Holdings Corporation
6.3.2 Chiyoda Corporation
6.3.3 Bechtel Corporation
6.3.4 Fluor Corporation
6.3.5 McDermott International, Inc.
6.3.6 Saipem SpA
6.3.7 Technip FMC plc
6.3.8 Chevron corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
APAC LNG infrastructure Market Research FAQs
What is the study period of this market?
The Asia Pacific LNG infrastructure Market is studied from 2019 - 2028.
What is the growth rate of Asia Pacific LNG infrastructure Market?
The Asia Pacific LNG infrastructure Market is growing at a CAGR of >6.5% over the next 5 years.
Who are the key players in Asia Pacific LNG infrastructure Market?
JGC Holdings Corporation, Chiyoda Corporation, Bechtel Corporation, Fluor Corporation, Chevron corporation are the major companies operating in Asia Pacific LNG infrastructure Market.
Asia Pacific LNG infrastructure Industry Reports
In-depth industry statistics and market share insights of the Asia Pacific LNG infrastructure sector for 2020, 2021, and 2022. The Asia Pacific LNG infrastructure research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Asia Pacific LNG infrastructure report PDF.