In the ever-evolving energy sector, the Large-Scale LNG Terminals Market is steadily commanding great attention. Leveraging cleaner energy options such as natural gas is increasingly being seen as a viable option in the battle against air pollution. This trend has led to a strengthening market for LNG with key areas of demand being power, fertilizers, city gas distribution networks, and refineries.
However, with fluctuating natural gas prices, the risk associated with large-scale LNG terminal construction is a concern. Nevertheless, this potential issue is balanced by the emerging opportunities resulting from regional supply imbalances, suggesting that LNG terminal companies may be able to optimize their operations and profitability. The Asia-Pacific region, home to both liquefaction and regasification terminals, is a dominant player in the large-scale LNG terminals market. The region's capacity for regasification is expected to increase further, driven by the rising demand for natural gas, particularly in the power sector.
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The market was negatively impacted by COVID-19. Presently the market has now reached pre-pandemic levels.
- Natural gas is a cleaner fuel than crude oil, helps to reduce air pollution, and thereby helps in reducing air-spread diseases that get spread through multiple toxic macro particles. On the other hand, trading takes place on the ground of requirements. The power, fertilizers, city gas distribution networks, and refineries majorly drive the liquefied natural gas market within a country.
- However, fluctuating natural gas price increases the risk associated with large-scale LNG terminal construction and, therefore, is expected to hinder the market's growth.
- The supply imbalance in the region would result in increased dependency on the other regions, which is expected to create an opportunity for the LNG terminal companies.
- The Asia-Pacific is dominating the large-scale LNG terminals market with the presence of both liquefaction and regasification terminals. Australia, Indonesia, and Malaysia have the highest capacity liquefaction terminals, while Japan, South Korea, China, and India have the highest capacity infrastructure for the regasification of LNG.
Large Scale LNG Terminals Market Trends
Regasification LNG Terminals to Dominate the Market
- In 2021, Japan, South Korea, China, and Spain dominated the market with a large capacity of LNG regasification terminals. Japan's regasification capacity for LNG accounted for 211.4 million metric tons per year in 2021, the highest in the world.
- In 2021, the total consumption of natural gas in Europe amounted to 412 billion cubic meters, up by 4% (17 billion cubic meters) compared to 2020. In 2021, the EU imported 24% of its total natural gas through LNG, with the remaining coming from pipelines, primarily from Russia, Norway, the UK, and Algeria.
- Moreover, In February 2022, 21 terminals were operating in Europe, with a combined regasification capacity of 160 bcm/year and a combined storage capacity of 7.65 million m3 LNG.
- There were five more projects (including expansion at existing terminals) under construction in Europe, adding up to an additional 19.5 bcm/year of regasification capacity overall. Thus, with the above projects and increasing LNG consumption in Europe, the LNG regasification terminals segment is expected to grow in the forecast period.
- With the increasing demand for natural gas, especially in the power sector, it is expected that more large-scale LNG is expected to get commissioned during the forecast period.
Asia-Pacific to Dominate the Market
- In 2021, According to the BP World Energy Review, the region accounted for 72% of the global capacity in LNG imports. In addition to urbanization and rapid economic growth, the construction of new LNG regasification terminals has played a key role.
- LNG imports accounted for 371.8 Billion cubic meters in Asia-Pacific in 2021. With an annual growth rate of 7.7%, imports are expected to increase in the future, which, in turn, will create demand for large-scale LNG terminals in the forecast period.
- China had 24 terminals under construction with a total capacity of 85 million tons per year. Additionally, By 2024, Singapore-based Atlantic, Gulf, and Pacific seek to open its first liquefied natural gas port in India, however, it is considering other locations in addition to the southern part of the nation as a potential site.
- Thus, with the upcoming LNG terminal projects and increasing LNG import capacity, the region is expected to dominate the market in the forecast period.
Large Scale LNG Terminals Market Competitor AnalysisThe Large-Scale LNG Terminal Market is fragmented. Some of the key players in the market (not in a particular order) include TotalEnergies SE, Exxon Mobil Corporation, Shell PLC, Chevron Corporation, and BP PLC.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 List of LNG Terminals by Capacity, and by Location, 2022
4.3 List of Upcoming Terminals by Capcity and Location
4.4 CAPEX Forecast for LNG Terminals Market in USD billion, till 2027
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitute Products and Services
4.9.5 Intensity of Competitive Rivalry
5.3.1 North America
5.3.4 South America
5.3.5 Middle East & Africa
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Cheniere Energy Inc.
6.3.2 China National Offshore Oil Corporation (CNOOC)
6.3.3 TotalEnergies SE
6.3.4 Exxon Mobil Corporation
6.3.5 Shell PLC
6.3.6 Chevron Corporation
6.3.7 British Petroleum (BP) PLC
6.3.8 Tokyo Electric Power Company Holding Inc.
6.3.9 Tokyo Gas Co. Ltd
6.3.10 Petronet LNG Ltd
A selection of companies mentioned in this report includes:
- Cheniere Energy Inc.
- China National Offshore Oil Corporation (CNOOC)
- TotalEnergies SE
- Exxon Mobil Corporation
- Shell PLC
- Chevron Corporation
- British Petroleum (BP) PLC
- Tokyo Electric Power Company Holding Inc.
- Tokyo Gas Co. Ltd
- Petronet LNG Ltd