Small-Scale LNG Market Worth $31.78 Billion by 2030

SEATTLE (Oil Monster): The report "Small-Scale LNG Market by Type (Liquefaction, Regasification), Modes of Supply (Trucks, Trans-shipment & Bunkering, Others), Application (Heavy-Duty Vehicles, Industrial & Power, Marine Transport, Others) Region - Global Forecast to 2030", is expected to reach USD 31.78 billion by 2030 from USD 22.14 billion in 2025, at a CAGR of 7.5% during the forecast period.

The small-scale LNG sector is expanding due to its benefits in comparison to large-scale LNG facilities, aiding in cost reduction, offering environmental advantages, benefiting from government subsidies, and responding to the growing demand for its applications in bunkering, road transport, and off-grid power. The term small-scale LNG refers to the use of liquefied natural gas (LNG) in smaller volumes rather than larger ones. Transportation of small-scale LNG is accomplished using smaller trucks, vessels, or containers to deliver it to locations lacking direct access to natural gas. As LNG emits fewer pollutants than other available fuel types, the recent EU rule known as FuelEU Maritime, aimed at promoting low-carbon and renewable fuels to decrease greenhouse gas (GHG) emissions from vessels, especially those entering EU ports, is anticipated to facilitate market growth.

Trans-shipment & bunkering segment to register the fastest growth during the forecast period

Demand for small-scale LNG through transshipment and bunkering is rapidly increasing, particularly in regions with ports, active shipping lanes, and island nations. Transshipment refers to the process of transferring LNG from one ship to another or from a large LNG carrier to a smaller vessel, facilitating easier delivery to minor ports or remote locations. This is advantageous when large LNG carriers are unable to access shallow or small harbors. With small-scale LNG transshipment, nations and islands lacking large ports or terminals can still obtain LNG. This contributes to extending clean energy access to more locations. Bunkering involves supplying LNG as fuel to ships.

Heavy-duty vehicles to be the largest market during the forecast period

The largest market for small-scale LNG is heavy-duty vehicles, as an increasing number of trucks and buses are transitioning from diesel to more environmentally friendly fuels. LNG (liquefied natural gas) is an attractive choice because it provides more energy, is more affordable in certain regions, and, crucially, is less polluting compared to diesel. As nations aim to lower air pollution and achieve climate objectives, many are promoting the use of LNG in transportation. Small-scale LNG facilitates this by making LNG accessible at smaller fueling stations along highways or in proximity to industrial zones.

Asia Pacific to be the fastest-growing market during the forecast period

Use of small-scale LNG in the Asia Pacific is growing rapidly because many countries in this region are demanding clean, affordable, and reliable energy. Large pipelines or power plants are often difficult to be built in islands, remote areas, and small cities, wherein small-scale LNG becomes very helpful. Countries like China, India, Indonesia, the Philippines, and Thailand are increasingly using small-scale LNG. It is used for electricity in villages, fuel for trucks and ships, and to supply gas to factories in areas without pipelines. Small LNG plants and trucks are being set up to move LNG in small quantities by road or sea. In island countries like Indonesia and the Philippines, small ships carry LNG to far-away islands that need power.

The report profiles key companies, including Linde plc (US), Wartsila Corporation (Finland), Honeywell International Inc. (US), Shell plc (UK), TotalEnergies (France), ENGIE S.A. (France), Chart Industries, Inc. (US), Gasum oy (Finland), Sofregaz (France), and Excelerate Energy Inc (US).

 Courtesy: www.marketsandmarkets.com