The global Liquefied Natural Gas trends in 2024
The global Liquefied Natural Gas (LNG) market size was USD 135420 million in 2023 and is expected to reach 205280 million by the end of 2029, growing at 5.7% between 2023 and 2029. Despite the fierce competition in the market, the global recovery is encouraging investors.
The sector continues to attract new investment, driving innovation and creating the potential for further growth. This dynamic environment encourages stakeholders to seize new opportunities and contribute to the development of the sector.
LNG industry dominated by Asia-Pacific
The main players in the global LNG market are ConocoPhillips, Qatar Petroleum, Shell, etc. The three largest producers in the world own 30%. Asia Pacific is the largest market with around 55%, followed by Europe and North America, both with more than 35%.
North America, in particular the United States of America (USA), is particularly important for the future of the LNG market and must not be neglected. Any changes in the US could have a significant impact on overall market trends. The North American market is expected to show significant growth over the forecast period. This can be attributed to the high level of adoption of advanced technologies and the presence of large players in the industry, which foster ample growth opportunities. As the sector continues to recover worldwide, it remains attractive for investment, attracting new companies and creating the conditions for further growth.
War in Ukraine boosts LNG ship production
Liquefied natural gas shipping is currently on the rise, with the construction of new LNG vessels increasing after the Russian invasion of Ukraine. For example, LNG carrier orders have reached 53.6% of the total LNG carrier fleet. While these figures are encouraging for the long-term stability of LNG shipping and LNG shipping equipment suppliers, they will also have a significant impact on the future shipbuilding availability profile. Not only have LNG tankers taken up space that is no longer available for other ship types, but this mass of LNG tanker orders is also having an impact on the value-added products that shipyards want to build.
In response to Russia’s invasion of Ukraine, the West will continue to target Russian LNG projects in 2024. The US recently imposed sanctions on Novatek’s transhipment operations and the company’s 19.8 mtpa (millions of tonnes per annum) Arctic LNG 2 project. Despite this, Russia managed to announce the launch of the first mass-produced gravity liquefaction plant in July 2023 from the Belokamenka offshore construction centre. Further sanctions are expected to be imposed in 2024.
As known, liquefied natural gas (LNG) is natural gas that has been cooled to a liquid state, around -260° Celsius, so that it can be transported and stored. The volume of natural gas in its liquid state is about 600 times less than its volume in its gaseous state. This process, developed in the 19th century, makes it possible to transport natural gas to places beyond the reach of pipelines and to use natural gas as a transport fuel.
Author: Rolands Petersons, logistics expert