LNG Terminal Market Size - By Terminal (Onshore, Floating), Growth Opportunities, Industry Trends, Regional Outlook & Forecast, 2023 – 2032

LNG Terminal Market Size

LNG Terminal Market size was valued at USD 5.6 billion in 2022 and is projected to grow at a CAGR of 15.8% between 2023 and 2032. LNG, a supercooled form of natural gas, offers the advantage of being more easily transportable over long distances, enabling it to serve as a bridge fuel in the transition to renewable energy sources. Advances in LNG technology have improved operational efficiency and reduced costs. Innovations including improved cryogenic storage designs, optimized liquefaction processes, and more efficient regasification technologies. These advancements contribute to making LNG projects economically viable and environmentally sound over the years.
 

The liquefaction of natural gas for export and its regasification for import have become crucial elements of the global energy trade. Countries rich in natural gas resources, such as the U.S. and Australia, have increased their LNG production and exports to meet the growing demand across Asia and Europe. Additionally, governments, energy companies, and international organizations have invested heavily in LNG infrastructure, including liquefaction plants and regasification terminals. These investments aim to capitalize on the growing LNG demand, improve energy security, and create new business opportunities.
 

COVID-19 Impact

The disruptions caused by the COVID-19 pandemic highlighted the importance of supply chain resilience. As the pandemic led to lockdowns, travel restrictions, and economic slowdowns, global energy demand plummeted. This directly affected natural gas demand, including LNG. Reduced industrial activity, lower electricity demand, and decreased natural gas consumption in the transportation sector led to a decline in LNG demand. This drop in demand caused a sharp decline in LNG prices, disrupting the market's stability.
 

Moreover, due to the uncertainty caused by the pandemic and the economic downturn, some LNG terminal projects faced delays or cancellations. Financing challenges and decreased energy demand made it difficult for developers to proceed with planned projects. Investment decisions were put on hold as companies reevaluated their capital expenditure plans.
 

LNG Terminal Market Trends

The development of smaller, modular LNG facilities has democratized LNG production. These facilities can be tailored to serve local or regional markets, making LNG more accessible to areas previously underserved by larger export-oriented terminals. This trend promotes energy security and resilience. The industry has recognized the need to minimize methane emissions, a potent greenhouse gas, along the LNG value chain. Efforts to improve monitoring, detection, and mitigation of fugitive emissions from production to consumption are ongoing. These measures have positively positioned LNG as a lower-carbon energy source.
 

LNG Terminal Terminal Market Analysis

The onshore LNG terminal market surpassed USD 5.4 billion in 2022 on account of the growing demand for natural gas primarily across the Asia Pacific subcontinent. The expansion also included the construction of new regasification terminals to accommodate increased LNG imports. The development of small-scale terminals for localized energy needs including industrial applications, power generation in remote areas, and as a bunker fuel for ships will also boost the industry growth.
 

Additionally, the integration of power generation facilities, creating LNG-to-power projects along with development of gas-based infrastructure primarily across the Southeast Asian nations will propel the business landscape. Technological advancements in regasification processes improved efficiency and lowered operational costs will positively influence the business outlook.
 

Asia Pacific LNG terminal market size is anticipated to reach USD 4.5 billion by 2032. Significant economic transformation along with robust urbanization across the developing nations including India, Indonesia, Malaysia, and others will provide significant growth across the region. This has led to higher energy demand for industrial processes, power generation, and urban infrastructure, driving the need for LNG imports to meet this demand.
 

Furthermore, rising population, and industrialization have contributed to higher energy consumption in the region. LNG, with its flexibility, lower emissions, and relatively cleaner profile compared to coal, has been seen as a viable solution to address energy security and environmental concerns. The government organization, private players are also investing heavily toward expansion of LNG import infrastructure, including the construction of new regasification terminals and the expansion of existing ones, which will provide significant growth.
 

LNG Terminal Market Share

The key players operating across the LNG terminal market include

• Shell
• Abu Dhabi National Oil Company (ADNOC)
• BP
• TotalEnergies
• Chevron
• ExxonMobil
• Petronas
• CNPC
• Engas
• Eni SpA
• Vopak
• Engie
• Equinor
• PT Pertamina
• Petronet LNG
• Gazprom
• Qatar Energy
• Repsol
• Kuwait National Petroleum Company (KNPC)
• AES Corporation
   

LNG terminal market industry news

• In July 2023, Shell signed a MoU with the government of Morocco to provide 0.5 billion cubic meters of LNG under a 12-year deal. The LNG will be supplied from Spanish ports using a gas pipeline which links two nations till the time Morocco builds its own terminals.
   
• In July 2023, BP signed a long-term sale and purchase agreement (SPA) with OMV to supply 1 million tonnes of LNG per year from 2026 for 10 years. The LNG will be received and re-gasified through the Gate terminal in Rotterdam. The deal will diversify the company’s supply chain and reduce the dependence on Russia for gas.
   

This LNG terminal market research report includes in-depth coverage of the industry with estimates & forecast in terms of “MTPA” and “USD Million” from 2019 to 2032, for the following segments:

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By Terminal

• Onshore
• Floating

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • UK
  • France
  • Netherlands
  • Spain
  • Poland
  • Russia
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Thailand
  • Malaysia
  • Indonesia
• Middle East & Africa
  • UAE
  • Qatar
  • Oman
  • Bahrain
  • Algeria
  • Egypt
• Latin America
  • Brazil
  • Argentina