C-Type LNG Carrier Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Product Type, Application and Geography

The C-type LNG carrier market size was valued at US$ 6,469.02 million by 2028 from US$ 3,920.84 million in 2021. It is expected to grow at a CAGR of 7.5% during 2022-2028.

The surging demand for natural gases by residential, industrial, and commercial sectors, mainly from the developing economies, and the growing usage of LNG carriers for a wide range of end-use applications, such as defense and transport, are among the major factors boosting the growth of the C-Type LNG carrier market.

Furthermore, the demand for LNG has led to huge investments in infrastructure, production, and the international development of distribution networks, fueling the demand for LNG shipping. LNG export terminals across the globe are growing in number due to the rising demand for natural gas. Thus, the amount of LNG transported by ships and the number of vessels fueled by LNG are expected to boost the demand for C-Type LNG carriers in the next few years.

C-Type LNG carriers are widely adopted in the oil & gas industry. Refined natural gas, such as methane, is transported by pipeline to population centers for industrial, commercial, and residential use, which is first processed at oil and gas facilities for refinement. Further, the rising demand for oil and gas has led to deeper drilling, with many drilling rigs located further offshore, which has increased the need for LNG carriers for storage. LNG shipping to different locations is done through pipelines, oil tankers, railroads, etc. Pipelines play a crucial role in transportation as a larger amount of the oil moves through pipelines for at least some part of the route.

In addition, the agreement between the US and the European Union (EU) on the additional supply of liquefied natural gas (LNG) will contribute to the global market. Under the deal, Europe will receive at least 15 billion cubic meters of additional LNG shipments by 2022. In addition, the US Commission is working with EU countries to ship 50 billion cubic meters of additional materials by 2030. Hence, inter-regional trade is on the rise, which is expected to provide lucrative opportunities for C-Type LNG carrier market vendors over the forecast period. Further, government authorities across the globe are continuously focusing on increasing private sector participation as a part of their strategy to manage their country's petroleum resources. For example, the Ministry of Petroleum and Natural Gas, India, and the Government of Trinidad and Tobago have taken initiatives to monetize their petroleum resources. The petrochemical sector makes substantial use of LNG pressure carriers or vessels, reactors, and heat exchangers to transform petroleum and other fossil fuels into chemical products such as ethylene and propylene.

The C-Type LNG carrier market is mainly dominated by players such as Komarine Co.; Torgy LNG; Gas Entec Co., Ltd.; China Shipbuilding Trading Co. Ltd.; and Knutsen OAS Shipping. Further, these players engage in expanding their business through activities such as new product launches, market initiatives, investment in technology upgrades, mergers & acquisitions, and other joint activities.

For instance, in 2022, China Shipbuilding Trading Co., Ltd. (CSTC) and Jiangnan Shipyard (Group) Co., Ltd. - two subsidiaries of China State Shipbuilding Corporation Limited (CSSC) - signed newbuilding contracts for three units of 175000 cubic meter LNG carriers with ADNOC L&S, which is the second series order of 175000 cbm LNG carrier in short term.

Market players are implementing various strategies to expand their regional footprints. For example, Knutsen OAS ordered three additional LNG carriers from Hyundai Samho Heavy Industries to expand its marine business.

COVID-19 Impact on C-Type LNG Carrier Market Size

The North America, the COVID-19 pandemic impacted LNG investment and near- and longer-term fundamentals. For example, in the US market, there has been surged in importance over the past decade because of the shale boom. COVID-19 has made delays in construction and liquefaction projects which has impacted the production of LNG carriers, and LNG projects could be an attractive option for cutting costs.

The growing demand for C-Type LNG carriers from the rapidly expanding economies of Asia Pacific is expected to be a key driving force in producing momentum for a worldwide economic recovery from the effects of the COVID-19 pandemic. Along with China, India is expected to lead Asia's LNG regasification capacity additions in the next few years, accounting for 60.0% of the region's total between 2020 and 2024. As economies started to reopen after the restrictions related to COVID-19 were eased, the LNG demand in the Asia market may return to the 2018 level. In addition, shipyards in China and South Korea could not accommodate the demand for new LNG vessels as they worked to meet a flood of orders for new container ships following global supply chain disruptions and port congestions that held up ships in the US and China during the pandemic.

Companies profiled in the C-Type LNG Carrier market study include Koarine Co.; Torgy LNG; Gas Entec Co., Ltd.; China Shipbuilding Trading Co. Ltd; Knutsen OAS Shipping; TGE Marine Engineering GmbH; Hyundai Samho Heavy Industries Co., Ltd; Mitsubishi Heavy Industries, Ltd; DSME Co., Ltd; and Gaslog Ltd. C-Type LNG Carrier market players are following both organic and inorganic growth strategies to sustain the competitive edge. For instance, Daewoo Shipbuilding & Marine Engineering Co. (DSME) has received KRW 1.07 trillion (US$ 850 million) to build four liquefied natural gas (LNG) carriers as a part of a deal with a Qatar state oil firm, which will be done by 2025. Such initiatives by key players will contribute to the C-Type LNG carrier market growth during the forecast period.

The overall C-Type LNG carrier market analysis has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the C-Type LNG carrier market. The process also serves the purpose of obtaining overview and forecast of the C-Type LNG carrier market size with respect to all market segments. Also, industry participants and commentators have conducted multiple primary interviews to validate the data and gain more analytical insights. The participants typically involved in the C-Type LNG carrier market study include VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the C-Type LNG carrier market.