Market Trends of LNG Terminal Industry
This section covers the major market trends shaping the LNG Terminals Market according to our research experts:
Floating Storage Regasification Unit to Witness Huge Growth
- Floating Storage Regasification Unit (FSRU) is constructed under a leasing contract. Capital expenditure (CAPEX) investment in such projects is much lower compared to what is required in an onshore facility. However, In the long run, it is more profitable to go for an onshore facility as it requires lower maintenance.
- Floating facilities are cheaper to build and, therefore, can become a bridge for entry of developing economies, in the use of natural gas, to provide clean energy to its citizens. The lower price of natural gas, especially after the shale gas boom, has made the market more suitable for developing economies.
- Bangladesh built its first floating facility, in 2018, in the Bay of Bengal, named Moheshkhali, which is expected to help it to use natural gas to develop its economy.
- The Floating facility segment is going to help more economies to join and, therefore, help rapidly increase the LNG Terminal Market in the forecast period of 2020-2025
Understand The Key Trends Shaping This Market
Download Sample
Asia-Pacific to Record the Highest Growth
- LNG import growth, in the year 2018, was driven by China and South Korea. They accounted for nearly 80% of the growth (net) in the year 2018, with a combined incremental growth of 22.2 MTPA
- 9 out of 19 terminals, which are being built (both planned and partially constructed), in the Asia-Pacific region, till February 2019, are being made in China. Almost 20 MT is expected to be added in capacity by 2022 with new terminals, among many, opening in Shenzhen and Wenzhou.
- India is also expected to add a capacity of 19 MTPA by 2021, with new terminals being built in Mundra and Dharma Port. Ennore LNG, 5 MTPA, terminal was started in March 2019.
- The region is expected to lead the growth in LNG Terminals till 2025 and help in increasing the demand for natural gas.
Get Analysis on Important Geographic Markets
Download Sample
