The global Liquefied Natural Gas (LNG) market size was estimated at USD 98.6 billion in 2023 and is projected to reach USD 161.98 billion in 2030 at a CAGR of 7.35% during the forecast period 2023-2030.
LNG (Liquefied Natural Gas) is a type of natural gas that is cooled to a liquid for non-pressurized storage or transportation. The gas shrank 600 times after cooling, which makes it easy to store and transport. One of the advantages of gas liquefaction is that LNG does not ignite when burned in liquid form. Once the LNG has reached its destination, it is converted back into gas at regasification plants and re-supplied for residential, commercial and industrial use or for power generation. LNG is a transparent, harmless, odorless and non-corrosive gas that is competitive and provides a clean transportation fuel.
The growth of the global Liquefied Natural Gas (LNG) market is mainly driven by the growing demand for natural gas as a cleaner and more efficient source of energy, proliferation of LNG as a transportation fuel, and government policies to reduce dependence on fossil fuels and encourage the use of natural gas, harsh winters and summers, increased demand for goods and services due to economic growth and rising oil prices are some of the main factors influencing the global LNG market. In addition, the increase in the availability of LNG from new projects and the expansion of LNG export facilities also contributed to the growth of the LNG market.
The spread of the COVID-19 pandemic adversely affected the market, most of the LNG projects which were going to start in 2020 were postponed, the demand for LNG was negatively affected by the decrease in activity in the commercial and industrial sectors. The market has now reached the same pre pandemic scenario.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. Post-Covid, the LNG market is expected to grow significantly due to various factors such as technological advancements, growing demand for LNG in the Asia-Pacific region, and others. The LNG industry is changing as technology advances and new sources of demand increase. Technological development enables the production, liquefaction and storage of LNG gas in the offshore area. Flotation liquefaction is a relatively new technology compared to flotation regasification, which has quickly established itself in the market. However, the delay in the LNG project is one of the main factors hindering the planned growth of the LNG market. These factors have led to the expansion of the market and increased demand for Liquefied Natural Gas (LNG) solutions.
Asia-Pacific to Dominate the Market
