#small scale lng

According to MarketsandMarkets projects that the global small-scale LNG market will grow from USD 46.4 billion in 2022 to USD 92.8 billion by 2028, at a CAGR of 14.9%, during the forecast period. The global energy landscape is witnessing a significant shift towards cleaner and more sustainable fuel options. In this transition, small-scale LNG (liquefied natural gas) has emerged as a flexible and efficient solution to meet the energy demands of diverse industries and regions. With the increasing focus on reducing greenhouse gas emissions and transitioning to cleaner fuels, LNG is gaining popularity as a viable alternative to conventional fossil fuels. Small-scale LNG offers lower emissions, especially when used in transportation and power generation applications, making it an attractive option for industries aiming to reduce their carbon footprint. 

The rising demand for LNG from different end-use applications such as heavy-duty vehicles, and industrial & power are propelling the growth of the small-scale LNG market globally. However, factors such as the maritime industry is undergoing a significant shift towards cleaner fuels to comply with stricter environmental regulations. Small-scale LNG plays a pivotal role in this transition, with LNG bunkering becoming increasingly important for ships and vessels. 

Linde plc is one of the leading companies in the international gas market. It comprises two divisions, gases and engineering. Linde operates in two main business segments: industrial gases and engineering. The industrial gases operations are structured based on geography and are divided into three reportable segments: Americas, EMEA (Europe/Middle East/Africa), and APAC (Asia/South Pacific). Each segment focuses on delivering industrial gases to customers within its respective region. Additionally, the engineering business represents the fourth reportable segment, operating on a global scale. The engineering division of the company is spread worldwide, with a focus on market segments including natural gas, olefin, hydrogen, air separation, and synthesis gas plants. The small to mid-scale LNG terminals are operated under the engineering division. The Star LNG concept was established for the small-scale liquefaction capacities ranging between 100 and 600 tons per day. Such small-scale liquefaction plants typically consist of LNG storage tanks, liquefaction and natural gas treatment units, and LNG filling station. It has supplied more than 300 cryogenic processing plants to Australia, Norway, Germany, and China. Linde plc has vast experience in design, development, and construction of natural gas processing plants, including small-scale LNG terminals along with storage, import, export, and loading facilities. 

Wartsila Corporation is one of the key leaders in advanced technologies and complete lifecycle solutions for the marine and energy markets. The company is one of the global suppliers of flexible power plants with a capacity of up to 600 MW, operating on gas and liquid fuels. Wartsila operates through four business segments: Wartsila marine power, Wartsila marine system, Wartsila energy, and Wartsila voyage. It offers small scale LNG solutions, including small and medium-scale terminals and distribution systems, under the energy solutions division. Marine segments offers a range of products and solutions that are relevant to the transportation of LNG using shuttle tankers. The company delivers small and medium-scale LNG terminals with the storage capacity of 100-160,000 cubic meter, under an Energy, Procurement, Construction (EPC) delivery arrangement. Wartsila offers LNG liquefaction plants and barge, containing storage tanks and regasification systems. 

ENGIE SA engages in the provision of electricity, natural gas, and energy related services. It operates through the following segments: Renewables, Networks, Energy Solutions, Thermal, Supply, Nuclear, and Others. Elengy, a subsidiary of Engie, operates three LNG import terminals in France, and its services are available to international energy providers. These import terminals are equipped with small-scale infrastructure providing services such as truck loading, bunkership, transshipment, and reloading. The subsidiary provides its LNG expertise to support the development of small and large-scale LNG terminals worldwide. 

Other companies have initiated the following developments:

In June 2023, Wartsila Corporation has got the contract to increase the capacity of the regasification system on the floating storage and regasification unit (FSRU). This floating storage and regasification unit (FSRU) vessel is owned by LNG Hrvatska, based in Zagreb, and serves as an LNG terminal on Krk island. The Wartsila Corporation will work together with the existing regasification system on the ship and increase its capacity by 212 million standard cubic feet per day or 250,000 cubic meters per hour.

In February 2023, Elengy, a subsidiary of ENGIE S.A, has entered into an agreement with Delta Rail, a transportation company. The purpose of this agreement is to introduce a new service for loading LNG containers from multimodal platforms in Europe. This agreement will allow customers to load LNG containers onto Delta Rail's wagons at Elengy's LNG terminals in France and Belgium, and then transport the containers to their final destinations by rail.This agreement is expected to reduce the cost and environmental impact of transporting LNG by making it possible to transport LNG containers by rail over longer distances.

In January 2022, Elengy has recently announced the signing of its first customer agreements for the satellite storage of Liquefied Natural Gas (LNG) in Reichstett, located in Bas-Rhin. This project has been developed in partnership with Rubis Terminal

Small Scale LNG

The demand for Europe small-scale LNG market is projected to grow from 1,902.60 million Euros in 2020 to 5,818.75 million Euros by 2030, while actuating at an estimated CAGR of 11.8% from 2020 to 2030. Europe is likely to experience faster growth as compared to other regions in the global market owing to the mandate set by European Union on sulphur emmsions. For instance, the sulphur emmsions cap for marine fuel is set as 0.5% by the year 2020. Favorable prices of LNG along with growing demand from key sectors such as transportation and power generation, is projected to augment market demand over the forecast period. Also, various government regulations in light of environmental benefits of LNG have fostered the market growth in the region.

Small scale LNG includes the direct use of LNG in its liquid form. Conventional modes of regasification and subsequent introduction of LNG into the gas transmission grid for lesser production capacities have now become a part of small scale LNG. These small-scale liquefaction plants posses a production capacity of less than 500,000 tonnes per year (tpy), and vessels with a LNG storage capacity less than 30,000 cubic meters. Small-scale LNG plants are re-deployable and primarily designed for small gas field. Small scale LNG meets the growing demand from the shipping and trucking industries for fuels that are environment friendly as compared to oil and diesel.

Key findings from the report:

The Europe small scale LNG market is expected to reach 5818.7 million Euros by 2030 at a CAGR of 11.8%

Based on application:

The road transport fuel segment is likely to be the largest segment of the Europe small scale LNG market in 2020

The marine fuel segment is expected to emerge as the fastest growing segment, over the forecast period

Based on off grid power generation:

Off-grid industrial segment is projected to hold the largest share of the Europe small scale LNG market in 2020

Based on supply mode:

Ship-to-ship segment is likely to dominate the market in 2020 and the trend is likely to continue over the forecast period.

Some of the key companies operating in the market include Engie; Fluxys S.A.; Gazprom; Linde Gas; Skangas; Gasrec; Gasnor; Wärtsilä Corporation; General Electric; and LNG Gorskaya LLC, among others

Marine fuel segment : Expected to experience the fastest growth during 2020–2030

The marine fuel segment is likely to propel at the fastest CAGR of 12.48% over the forecast period. A rise in bunkering operations has been observed for small-scale ships, which suggests that the marine use of LNG is also becoming popular. Moreover, the regional fleet of LNG fueled ships in operations are increasing, such as supply & service vessels, and passenger ships among others. LNG offers superior performance, while meeting the environmental requirements as compared to other fuels. Considering these factors, the demand for LNG as a maritime fuel across the region is expected to grow significantly.

Road transport fuel segment : likely to dominate the market by 2030

The road transport fuel segment is likely to dominate the market in 2020 with a value of 888.67 million Euros owing to the increasing use of LNG as a cleaner road transport fuel in the region. Additionally, the volumes in truck loading have gone up by 8% as compared to last year, along with an increase in the number of LNG stations across Europe.

Off-grid power generation segment

Small-scale LNG has emerged as an effective and reliable solution for off-grid power generation and supply. On account of its flexibility, small scale LNG has fuelled demand in areas which were previously unsuited to LNG as a fuel source, such as off-grid power generation in remote areas or islands. These include the use of small scale LNG in households as well as for industrial purposes. A key driver for demand in off-grid power generation application is the development of an efficient and sustainable logistics network so that end users in remote locations can be reached. In addition, the investment required to switch towards LNG power is relatively lower than for other applications such as trucking and bunkering and no major infrastructure is required.

Small-Scale LNG Infrastructure

The LNG refueling stations are now appearing on the EU major trunk lines. The key suppliers of small scale LNG in Europe include Skangas in Sweden; Gaz Natural Fenosa and Enagas in Spain; Gazprom in Russia; ENGIE in France; and Liquigas in Italy. Most of the European LNG import terminals already offer truck loading and the availability of loading bunkering ships is increasing as well. Regasification terminals in the region have adapted their services to market conditions, while offering flexibility as well as developing small scale LNG infrastructure. These small-scale LNG infrastructure and services contribute towards increasing regional security of supply along with reducing EU emissions.

Browse full research report with TOC on “Europe Small-Scale LNG Market Outlook, Trend and Opportunity Analysis, Competitive Insights, Actionable Segmentation & Forecast 2020–2030” at: https://www.energiasmarketresearch.com/europe-small-scale-lng-market-report/

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Europe — Regional Insight

Europe has witnessed significant development in small-scale infrastructure in recent years. Countries such as France, Spain, and United Kingdom have multiple small-scale LNG import terminals supplying LNG to industries, off-grid power generation units, and truck refueling stations via truck reloading operations. These terminals also supply LNG to the bunkering terminals for the purpose of providing LNG as a marine fuel for LNG fueled ships. Major European countries plan to set up a bunkering network by the year 2020 for maritime operations. By the year 2025, these countries plan to have a bunkering network to serve inland waterways vessels as well. Germany, France, Spain, and United Kingdom among other countries are developing the “Blue Corridor” network which aims to establish LNG as an alternative fuel for medium and long-distance transport. This intiative is expected to propel the demand for LNG as a transport fuel segment over the next few years. Additionaly, countries with islands are expected to adopt LNG as a fuel for off-grid power generation.

The report segments European small-scale LNG market on the basis of application, infrastructure, and region.

Europe LNG Market, By Scale

Small-Scale LNG

Large-Scale LNG

Europe Small-Scale LNG Market, By Application

Marine Fuel by Supply Mode

Ship-To-Ship

Terminal-To-Ship

Truck-To-Ship

Others

Road Transport

Off-Grid Power Generation

Off-Grid Household

Off-Grid Industrial

Industry

By Europe Small-Scale LNG Market, Infrastructure

Truck Fueling Stations

Bunkering Vessels

Bunker Barge

Bunkering Terminals

Storage Hubs

LNG Storage

Regas Facilities

Truck-To-Ship Bunkering

LNG Trailers

By Country

United Kingdom

France

Italy

Germany

Spain

Belgium

Norway

Sweden

Greece

Croatia

Poland

Netherlands

Denmark

Romania

Hungary

Serbia

Albania

Luxembourg

Slovenia

Montenegro

Lithuania

Slovakia

Estonia

Macedonia

Latvia

According to a new market research report,  “Small Scale LNG Market is expected to Witness a CAGR of 7.2% during 2018–2024”,  published by Energias Market Research (https://www.energiasmarketresearch.com),  the total market is expected to reach USD 43.45 Billion by 2024 at an estimated CAGR of 7.2% from 2018 to 2024.

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11.08.2018

February 2, 2018

01.11.2018