According to a new report by Transparency Market Research, the global LNG market was valued at US$ 161.4 million in 2012 and is expected to reach US$ 196.4 million by 2019, expanding at a compound annual growth rate (CAGR) of 2.8% between 2013 and 2019.
The report additionally outlines that the LNG market primarily comprises three end-users: industrial sector, electric power and others. The industrial sector is anticipated to be one of the most dominant sectors in terms of demand for LNG. Various industries such as plastics, fertilizers and chemicals use LNG to run different processes. It is the preferred fuel for the industrial sector in many parts of the world due to low carbon intensity and strict regulations to use cleaner fuel and power sources in industries in order to reduce greenhouse gas emissions.
Transition from conventional fuels to LNG can help industries save significant capital and reap all the associated economics and environmental benefits. Demand for LNG in the electric power is high due to global warming awareness and high demand for electricity. LNG is more economical and environmentally friendly than traditionally fuels such as coal and diesel.
The report highlights that LNG boasts the additional advantage of having a long term fixed pricing structure. LNG has established itself as a suitable alternative to diesel in the electric power generation market. High calorific value of LNG in comparison to charcoal and hard coal makes it a prominent fuel in the power generation market.
Other sectors such as transportation and commercial are also major consumers of LNG. Rising fuel prices and depleting natural oil and gas reserves are driving demand for cleaner fuels. Conventional fuels such as diesel and petrol emit high amounts of COx on combustion. However, LNG is comparatively cleaner.
The full report can be downloaded here.
Adapted from a press release by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/12082014/global-lng-market-to-2019-1116/