Canada is making headlines in the Liquid Natural Gas (LNG) Industry as several high profile gas companies compete for a share in British Columbia’s natural gas surplus. How does this influence cryogenic equipment on a global scale? The reason being that the price of natural gas in Asia is approximately US$ 16.00 per thousand cubic feet compared to a little over US$ 3.00 in Western Canada.
Most recently, Petronas, a Malaysian oil and gas giant, stated that they plan to invest CAD$ 36 billion to improve pipeline infrastructure to accommodate a west-east orientation.
In the absence of pipelines, LNG is stored in cryogenic equipment and transported accordingly. With the high level of development occurring in many Asian countries, many are investing in LNG as an energy and transportation fuel source. Thus, LNG is expected to increase its contribution to the Global Cryogenic Equipment Market, fueling market growth at a CAGR of 8.56 percent for the 2012-2016 period.
So what exactly is Cryogenics?
Cryogenics is the study of the production of extremely low temperatures as well the behavior of materials at those temperatures. Cryogenic equipment is designed to store liquefied gases that are maintained at extremely low temperatures to retain their liquid state.
Cryogenic equipment is used across many industries such as Petrochemical, Power, Metallurgy, Chemicals, and Shipbuilding. As liquefied gases are required in the industrial processes or in the form of raw products in these industries, the demand for cryogenic equipment in these industries is increasing as such equipment is required to store these gases. The growth of these industries is expected to have a very positive influence on the Global Cryogenic Equipment market.
Moreover, features such as high thermal stability and anti-corrosive nature attributed to cryogenic equipment have led to the increase in the adoption of cryogenic equipment in the Petrochemical and Power industries.
This is also a big reason why China is currently the biggest contributor to the growth of the Global Cryogenic Equipment market because of the rapid expansion of the industrial base. China is heavily adopting LNG, which in turn means that they are also investing in cryogenic equipment which is expected to greatly contribute to market growth.
The increasing demand in Asia for cryogenic equipment, cryogenic equipment manufacturers are willing to increase their production capacity to meet this high demand. As customers require cost-effective solutions and efficient products that will provide them with better output, the demand for cryogenic equipment has increased significantly. Therefore, vendors in the market are investing heavily to increase their production capacity, which will drive market growth in the years to come.
For more information, view our 2012-2016 Global Cryogenic Equipment Market report.
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