LNG Terminals Market to Grow 3% by 2022
The large-scale LNG terminals market size is expected to post a CAGR of close to 3% during the period 2018-2022, according to the latest market research report by Technavio.
The rising demand for clean fuels is one of the major reasons for the growth of the large-scale LNG terminals market. Fossil fuels constitute a major source of energy to cater to the demands from the residential, commercial, and industrial sectors. However, they result in heavy emissions of CO2 and other greenhouse gases (GHGs).
Various regulations are being laid down by national governments and inter-governmental organizations to mitigate the concern of environmental pollutants. Thus, the demand for natural gas is expected to intensify further in the coming years which will drive the large-scale LNG terminals market growth.
As per Technavio, the commoditization of LNG will have a positive impact on the market and contribute to its growth significantly over the forecast period.
LNG has turned out to be a global commodity ever since the first LNG cargo was shipped from an LNG facility in Algeria in 1964. Supply surplus combined with increasing demand is essential for the growth of the global liquid commodity market. This is because, during stressed situations, the producers and consumers prefer long-term fixed agreements than trading openly.
Factors such as increasing diversity of suppliers and buyers, rising installation of floating regasification plants, and growing liquidity of tradable LNG have resulted in the commoditization of LNG similar to oil. Thus, the global LNG market is gradually turning out to be more productive and efficient.
“Apart from the commoditization of LNG, factors such as the increasing number of deepwater and ultra-deepwater drilling projects, and the rising popularity of renewable energy resources will have a significant impact on the growth of the large-scale LNG terminals market value during the forecast period,” says a senior analyst at Technavio.
The APAC region led the large-scale LNG terminals market in 2017, followed by EMEA, and the Americas respectively. The market dominance of APAC can be attributed to the demand-supply mismatch and competitive pricing, which provides significant growth opportunities for natural gas suppliers in the region.