Small scale liquefaction industry: Key market research findings
- The Americas dominate the market geographically
- Roadways account for a majority of the market’s revenue
- Key vendors – Black & Veatch, GE, Linde, Shell, and Siemens
Technavio’s market research analysts predict the global small scale liquefaction industry to grow at a CAGR of more than 7% between 2016 and 2020. The growth of this market is spurred by the need to comply with stringent maritime emission regulations. The push toward stringent emissions control in ECAs and non-ECA area is expected to give a boost to the LNG demand, which in turn leads to the growth of the SSLNG market. In 2015, the global small scale liquefaction industry was dominated by EMEA with a market share of around 66%. Slated decommissioning of reactors in the Czech Republic, France, Russia, Spain, and Sweden will propel the growth of the small-scale liquefaction industry in EMEA during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the small scale liquefaction industry based on the end user.
“The prospect of exploring and recovering gas from marginal and small fields is becoming more feasible than ever owing to the growing popularity of SSLNG. The capital investment required for setting up a value chain for SSLNG is much less as compared to a large-scale LNG plant. This is due to the modular and small size of liquefaction and regasification units. However, at present, several countries such as India, Nigeria, and China are struggling with the issue of monetizing their small gas fields,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.
By 2020, the roadways segment will account for around 66% of the small-scale liquefaction industry in terms of liquefaction CAPEX. Roadways account for approximately one-fifth of the total GHG emissions. Currently, diesel is being replaced with SSLNG as the preferred fuel for long-haul trucks due to the benefit of low GHG emissions. Incentives provided by the government such as alternative fuel excise tax credit, alternative fuel infrastructure tax credit, and natural gas vehicle tax exemption are factors that will contribute to the growth of this segment during the forecast period.
The key vendors in the global small scale liquefaction industry comprise of Black & Veatch, GE, Linde, Shell, and Siemens. The SSLNG liquefaction industry is growing and creating scope for new vendors to enter the market. Technologies that have been tried and tested in large-scale liquefaction can also be used here. Due to the small-scale of operations, most technologies have not been implemented in SSLNG. In SSLNG, the selection of a technology depends on the end user’s needs.
A more detailed analysis is available in the Technavio report, Global Small Scale Liquefaction Industry 2016-2020.
We can customize reports by other regions and specific segments upon request.
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