Small-Scale LNG Market - Global Forecast To 2021

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.2.2 PRODUCTS OFFERED

Product Features
StarLNG
 Fast-track EPC execution schedule
 Same safety levels as world-scale LNG plants
 Reduced CAPEX
 Highly efficient LIMUM process and easy to operate
 Modularized pre-treatment, process, and main pipe racks

StarLNGL  Same or higher levels of ethane and propane recovery
 Increased NGL plant capacity
 Less capital expenditure
 Highly efficient process
 Lower operating cost

LNG Floating Production  Liquefaction capacity of up to 2.5 million tons per annum (tpa)
Storage and Offloading (FPSO)  Utilizes Linde multi-stage mixed refrigerant process
units  Extensive pre-treatment facilities
 Handle untreated well fluids
 Fast implementation schedules

Flat-bottom storage tanks  Capacities up to 25,000 m³

Source: Company Website, Company Publications, Press Releases, and Annual Reports

11.2.3 RECENT DEVELOPMENTS

Date Approach Development

October Joint Venture Bomin Linde LNG, a member of Linde Group, signed a time charter with ship-
2016 owner Bernhard Schulte Shipmanagement Ltd. (Cyprus) for a 7,500 cubic meters
LNG bunker supply vessel. The LNG bunker supply vessel is charted to a joint
March Agreement venture in which Bomin Linde LNG holds 90% share of the remaining 10% held by
2016 Klaipėdos Nafta, the owner and operator of the LNG import terminal in Klaipeda
and Lithuania.
April 2015 Agreement
The Linde Group and Elliott Group signed an agreement to develop the main
January Expansions refrigerant cycle compression section for Linde’s StarLNGTM plants ranging from
2014 0.2 MMTPA to 1.3 MMTPA to increase the terminal’s operational efficiency in
producing LNG at short intervals.

Cryo AB, a Swedish engineering subsidiary of Linde Group, has been awarded a
contract by the Meyer Turku Shipyard of Finland to construct a liquefied natural
gas (LNG) fuel gas system for the next-generation high-speed ferry.

Bomin Linde LNG and Aktien-Gesellschaft EMS (AG EMS) signed a contract for
the delivery of LNG in Germany, resulting in the expansion of the customer base,
benefiting both the companies

100

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.2.4 SWOT ANALYSIS
FIGURE 28 THE LINDE GROUP: SWOT ANALYSIS

STRENGTHS WEAKNESSES

 Vast portfolio of application oriented products  Increasing cost of production of industrial gases
and services affects its production costs

 Focus on developing innovative solutions to
enhance the product quality, improve safety, and
reduce environmental impact

THE LINDE GROUP

 Global economic growth and worldwide industrial  New technology innovations by competitors
growth  Currency fluctuations

 Growing importance of natural gas as a fuel

 Increased climate protection efforts

OPPORTUNITIES THREATS

Source: Company Website, Company Publications, Press Releases, Annual Reports, and MarketsAndMarkets Analysis

11.2.5 MNM VIEW

The Linde Group’s engineering division utilizes its process engineering know-how in the project
development and construction of turnkey industrial plants to avoid sourcing of engineering solutions from
the third party vendors. The company’s engineering division either supplies small scale LNG terminals
directly to the customer or to its gasses division that operates the terminals on behalf of the customer
under the gasses supply contract, making it an organized business division to regulate its revenues. The
Linde Group offers small scale LNG terminals across regions such as Europe, the Middle East & Africa,
Asia-Pacific, and the Americas to expand its regional penetration. Revenue in the company’s engineering
division in the financial year 2015 dropped by 16.5% from USD 4.3 billion in 2014 to USD 3.6 billion in
2015, due to the low oil price and faltering demand in the plant construction in the first half of the year
2015.

101

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.3 WÄRTSILÄ CORPORATION

11.3.1 BUSINESS OVERVIEW

Wärtsilä 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 of
capacity up to 600 MW, operating on gas and liquid fuels. Wärtsilä offers LNG solutions under the energy
division that consist of small and medium scale terminals, and distribution systems. The company delivers
small and medium scale LNG terminals with the storage capacity in the range of 100 to 160,000 m³ under
an EPC contract. Additionally, Wärtsilä also offers LNG liquefaction plants and barge, containing storage
tanks and regasification systems.

FIGURE 29 WÄRTSILÄ CORPORATION: COMPANY SNAPSHOT

COMPANY AT A GLANCE - 2015 RECENT FINANCIALS

Founded: 1834 Revenue (USD Billion) 12.0
Headquarters: Helsinki, Finland
Employees: 18,800 8.0
Revenue: USD 5.5 Billion 6.3 5.8 5.5
Ownership: Public (HEL:WRT)
4.0

0.0 2014 2015
2013

REGIONAL REVENUE MIX BUSINESS REVENUE MIX

2% 40% Asia Pacific 22% Services
7% Europe 43%
Americas Marine Solutions
20% Africa
Other regions 35% Energy Solutions
31%

Note: Average annual exchange rate taken in 2015, 1 Euro = 1.0925 USD; 2014, 1 Euro = 1.2155 USD; and 2013, 1 Euro = 1.3766
USD, Year ended as on 31st December 2015.

Source: Company Website and Annual Reports.

102

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.3.2 PRODUCTS OFFERED

Product Features
LNG liquefaction plants
 Suitable for small to medium size liquefaction capacities
Small and medium-scale LNG  Utilizes surplus liquid nitrogen (LIN)
terminals  Capacity (2000- 300,000 TPA)
 Gas pre-treatment
Storage and regasification barges  Integrated storage tanks, jetty & marine facilities, and export

systems

 Storage capacity (100-160,000 m³)
 Jetty & marine facilities
 Unloading systems
 Boil-off gas handling
 Regasification up to 1000 tons per hour
 Export systems

 Storage tanks (1000–30,000 m3)
 Type C-tanks for storage eliminates the need for boil-off gas

handling
 Fast and flexible access to gas in new areas
 For land unsuitable for onshore LNG tanks

Source: Company Website, Company Publications, Press Releases, and Annual Reports

11.3.3 RECENT DEVELOPMENTS

Date Approach Description
November Agreement
2016 Wärtsilä signed a Memorandum of Understanding (MoU) with ENGIE, a French
Agreement multinational company to develop services and solutions in the small-scale LNG
September sector. The agreement includes LNG distribution in remote areas and islands, LNG
2016 Expansion for ships, small-scale LNG and bio-liquefaction, and LNG to power stations.
New Product
June 2016 Launch Wärtsilä signed an EPCI (engineering, procurement, construction, and installation)
contract to supply a small-scale LNG in Raahe (Finland), which is expected to be
October 2015 operational in April 2018. The terminal includes an LNG regasification system, two
LNG vacuum insulated storage tanks with a combined net volume of 1,400m3,
truck loading and unloading functions, and all required civil structures.

Wärtsilä announced to develop mid-size LNG power plants as EPC contractor and
take up LNG terminal and ship building projects in India. This will help the company
to fulfill the increasing demand of LNG in the Asia-Pacific region and get competitive
advantage compared to domestic players in the country.

Wärtsilä introduced an innovative LNG storage and regasification barge concept,
which provides a means of meeting small to medium scale requirements, where
pure land-based LNG options are limited.

Source: Company Website, Company Publications, Press Releases, Annual Reports, and SEC Filings

103

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.3.4 SWOT ANALYSIS WEAKNESSES
FIGURE 30 WÄRTSILÄ CORPORATION: SWOT ANALYSIS

STRENGTHS

 Strong geographical presence in over 20  Variations in the foreign exchange rates impacts
countries the company

 Strong position and good customer  Too much investment in R&D as compared to
understanding in automation and navigation other business divisions, which in turn can lead
systems for large LNG vessels to decline in the revenues

WÄRTSILÄ CORPORATION

 Increasing environmental awareness and  Global economic downturn exerting enormous
changing energy needs pressure on the cost structure of the marine
industry
 Growth of world trade and transportation
capacity  Increase in labor cost

 Increase in the use of natural gas as a power
plant fuel

OPPORTUNITIES THREATS

Source: Company Website, Company Publications, Press Releases, Annual Reports, and MarketsandMarkets Analysis

11.3.5 MNM VIEW

Wärtsilä Corporation focusses on developing innovative solutions while offering small to medium-scale LNG
terminals, liquefaction and regasification solutions, and distribution infrastructures. The company is
emphasizing on integrating smart power generation power plant with LNG terminal to form a complete
turnkey solution, utilizing gas as a fuel. In 2015, order intake for both marine and energy markets dropped
from the previous year due to the challenging operating environment, depressed oil prices. Moreover, the
demand for small and medium-scale vessels was burdened by overcapacity that led to decline in the order
intake for marine and energy markets.

104

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.4 HONEYWELL INTERNATIONAL INC.

11.4.1 BUSINESS OVERVIEW

Honeywell International Inc. manages its business operations through three operating segments:
aerospace, automation and control solutions, and performance materials and technologies. The company
offers small scale LNG terminals through its subsidiary Honeywell UOP as a part of company’s performance
materials and technologies group. It offers small-scale natural gas pre-treatment and liquefaction plants
ranging between 50 and 500 gallons per day production capacity through its alliance with Black & Veatch
(U.S.). Honeywell International Inc. offers small-scale natural gas pre-treatment and liquefaction plants for
applications such as pipelines for capturing stranded gas and flare gas, power generation, gas storage for
peak saving, long haul trucking, marine, railroad, mining, and drilling applications.

FIGURE 31 HONEYWELL INTERNATIONAL INC.: COMPANY SNAPSHOT

COMPANY AT A GLANCE - 2015 RECENT FINANCIALS

Founded: 1906 Revenue (USD Billion) 50.0 39.1 40.3 38.6
Headquarters: Indiana, U.S. 45.0 2013 2014 2015
Employees: 129,000 40.0
Revenue: USD 38.6 Billion 35.0
Ownership: Public (NYSE: HON) 30.0
25.0
20.0
15.0
10.0

5.0
0.0

REGIONAL REVENUE MIX BUSINESS REVENUE MIX

16% U.S. 24% 39% Aerospace Sales
22% Europe 37%
Others International Automation and Control Solutions
62% Sales
Performance Materials and
Technologies Sales

Source: Company Website, Company Publications, Press Releases, Annual Reports and SEC Filings

105

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.4.2 PRODUCTS OFFERED

Product Features

Small-scale natural gas pre-treatment  50 and 500 gallons per day production capacity
and liquefaction plants
 Gas storage for peak shaving
SeparALL technology for regasification  Producing a substitution fuel for diesel
 Low lifecycle cost
 Turnkey packaged solution
 Operational flexibility
 Pre-treatment solutions combined with B&V’s PRICO liquefaction

solutions

 Sulfur removal with separate CO2 removal and capture
 Removes harmful acid gas from synthesis gas streams
 For hydrogen recovery/purification applications
 Permeability, selectivity, and contaminant resistance

Source: Company Website

11.4.3 RECENT DEVELOPMENTS

Date Approach Description

December Agreement Honeywell International Inc. announced that its process automation and natural
2015 gas technology has been selected by Texas LNG, a U.S.-based energy company to
remove contaminants from natural gas liquefaction process and export to
April 2014 Agreement customers globally. This technology is expected to improve the overall quality of
the LNG delivery, hence enhancing the efficiency of end users.
January 2014 Agreement
Honeywell International Inc. announced that its UOP Russell modular equipment
has been selected by Mistral Midstream, Inc. to recover valuable natural gas
liquids (NGLs) from natural gas produced in southern Saskatchewan, Canada.

Honeywell International Inc. signed an agreement with Qatar Petroleum (QP) to
develop innovative ways to treat natural gas for the production of LNG.

106

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.4.4 SWOT ANALYSIS WEAKNESSES
FIGURE 32 HONEYWELL INTERNATIONAL INC.: SWOT ANALYSIS

STRENGTHS

 Huge expenditure on R&D to keep strong market  Weak liquidity of assets and deteriorating cash
position flow

 Strong market position with reasonable debt
levels

 Massive customer base

HONEYWELL INTERNATIONAL INC.

 Expansions through tie-ups, product portfolio  Fluctuations in the foreign currency exchange
additions, and acquisitions rates might affect the financial performance

 Emergence of new applications such as space  Heavy dependence on suppliers
heating and air conditioning

OPPORTUNITIES THREATS

Source: Company Website, Company Publications, Press Releases, Annual Reports, and MarketsAndMarkets Analysis

11.4.5 MNM VIEW

Honeywell UOP, a subsidiary of Honeywell International Inc. is one of the leading players in manufacturing
and developing process technologies, advanced materials, and automation solutions. The company has
supplied technology to more than 3,600 process units for gas processing in a broad range of applications
such as long-haul trucking, and marine, railroads, mining, or drilling. In 2015, performance materials and
technologies division sales decreased from USD 10.2 billion in 2014 to USD 9.2 billion in 2015 due to the
unfavorable impact of foreign exchange rates and a decrease in the sales volumes. The slowdown in the
customer projects also has a significant impact on the performance materials and technologies division
sales in 2015.

107

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.5 GENERAL ELECTRIC

11.5.1 BUSINESS OVERVIEW

General Electric provides products and services that range from power generation, oil & gas production
equipment to medical imaging, financing, and industrial products. The company designs systems for LNG
production, liquefaction, regasification, and storage both for onshore and offshore under its oil & gas
business segment. The company’s solutions for LNG include gas turbine and control solutions,
compression solutions, small-scale LNG plant, floating LNG, module solutions, CO2 liquefaction, gearing
technology, and pumps.

FIGURE 33 GENERAL ELECTRIC: COMPANY SNAPSHOT

COMPANY AT A GLANCE - 2015 RECENT FINANCIALS

Founded: 1892 Revenue (USD Billion) 140.0 117.4 117.2 113.2
Headquarters: New York, U.S. 120.0
Employees: 333,000 100.0
Revenue: USD 113.2 Billion
Ownership: Public (NYSE: GE) 80.0
60.0
40.0
20.0

0.0

2013 2014 2015

REGIONAL REVENUE MIX BUSINESS REVENUE MIX

5% Aviation
Power
10% U.S. 6% 5% 21% Oil & Gas
14% Healthcare
14% Asia Pacifc 7% Capital
45% Europe Appliances & Lighting
17% 9% 18% Energy Management
Middle East and Africa Transportation
15% Renewable Energy
Americ as 14%

Note; No recent developments specific to the small-scale LNG market is available for the company for the period considered in the
report.

Source: Company Website, Company Publications, Press Releases, Annual Reports and SEC Filings

108

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.5.2 PRODUCTS OFFERED

Product Features

Small-scale LNG modular  Modular construction
plants  Interconnecting piping and structures
 Reduction in commissioning time
 Improved safety and repeatability
 Compression Solutions
 Aero-derivative Gas Turbines and Control Solutions
 Produce between 25 and 1,200 k/gallons of LNG per day

Source: Company Website, Company Publications, Press Releases, and Annual Reports

11.5.3 SWOT ANALYSIS
FIGURE 34 GENERAL ELECTRIC: SWOT ANALYSIS

STRENGTHS WEAKNESSES

 Alliances with companies from various industries  Low stock price due to the decline in the
to bring in new customers and make business investment by the shareholders and unattractive
effective earnings per share

 High quality machinery, staff, and equipment to
ensure quality standard

 Strong R&D, organizational structure, and
culture

GENERAL ELECTRIC

 Mergers and acquisitions to strengthen existing  Environmental regulatory norms and strict
business government policies can affect business
operations
 Emerging economies provide opportunities to
improve infrastructure with innovative solutions  Economic and political risks due to changes in
the policies and regulations

OPPORTUNITIES THREATS

Source: Company Website, Company Publications, Press Releases, Annual Reports, and MarketsAndMarkets Analysis

109

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.5.4 MNM VIEW

General Electric through its oil & gas business division serves all segments of the oil & gas industry from
drilling, completion, oil field operations, production, to transportation via LNG and pipelines, covering the
entire value chain within the oil & gas industry. The company offers small-scale liquefaction plants to serve
downstream segments of the industry including distributed gas, flow and process control, and other
industrial gas applications, making it one of the major Engineering, Procurement, and Construction (EPC)
contractors globally. General Electric’s small scale modular plants apply standardized components and a
proprietary plant control systems to reduce maintenance needs, plant commissioning time, installation
costs, which enhances plant’s efficiency and operability. Lower oil prices and impact of a stronger U.S.
dollar led to the decrease in the revenue for the oil & gas division from USD 19.1 billion in 2014 to USD
16.5 billion in 2015.

110

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.6 ENGIE

11.6.1 BUSINESS OVERVIEW

Engie is a global energy player operating in three business segments, namely, global gas and LNG,
infrastructures, and energy services. Elengy, a subsidiary of Engie operates the LNG carrier terminals in
France under infrastructures business segment. Elengy develops and operates these LNG terminals and
makes services available to international energy providers. Similarly, the subsidiary provides its LNG
expertise to support the development of small and large-scale LNG terminals globally.

FIGURE 35 ENGIE: COMPANY SNAPSHOT

COMPANY AT A GLANCE - 2015 RECENT FINANCIALS

Founded: 2008 Revenue (USD Billion) 25.0 20.4 17.0 15.9
Headquarter: La Défense, France 20.0 2013 2014 2015
Employees: 152,900 15.0
Revenue: USD 15.9 Billion 10.0
Ownership: Public (EPA: ENGI)
5.0
0.0

REGIONAL REVENUE MIX BUSINESS REVENUE MIX

6% North America 13% Energy Services
Latin America 18% Global Gas and LNG
18% 31% UK - Turkey In frastr uctur es
Asia Pacific 69%
20% South Asia and MEA
25%

Note: Average annual exchange rate taken in 2015, 1 Euro = 1.0925 USD; 2014, 1 Euro = 1.2155 USD; 2013, 1 Euro = 1.3766
USD, Year ended as on 31st December 2015.

Source: Company Website and Annual Reports.

111

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.6.2 PRODUCTS OFFERED

Product Features

LNG terminal at Fos-Tonkin  Capacity of 5.5 Gm3/year

The Montoir-de-Bretagne LNG terminal  Capacity of 10 Gm3/year

Gas terminal at Fos Cavaou  Capacity of 8.25 billion m3

Source: Company Website, Annual Reports, and SEC Filings

11.6.3 RECENT DEVELOPMENTS

Date Approach Description
Expansion
December Expansion Engie together with Kolin and Kalyon, a Turkish construction company have built
2016 an ETKI LNG terminal with a vessel capacity of 145,000 m3 in Turkey and is the
Agreement first LNG import terminal in the country. This agreement is expected to expand
December its presence in Turkey, apart from France.
2016
Engie’s global energy management division of France plans to expand in
November Istanbul by setting up a gas and power trading platform to fulfill the requirement
2016 towards low carbon energy supply in the country.

Wärtsilä, a Finland-based energy solution provider signed a Memorandum of
Understanding (MoU) with Engie to develop services and solutions in small-scale
LNG industry. The agreement covers four streams, namely, LNG distribution in
remote areas, LNG for ships, small-scale LNG and bio-liquefaction, and LNG to
power solutions. This agreement is expected to meet the supply demand gap
within the small-scale LNG industry

112

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.6.4 SWOT ANALYSIS WEAKNESSES
FIGURE 36 ENGIE: SWOT ANALYSIS
 Dependence on European customers
STRENGTHS

 Strong geographical presence with diversified
product offerings such as electricity, natural gas,
and other energy services

 Established product distribution and sales
network

 Highly skilled workforce
 Strong foothold in the European market

ENGIE

 Strategic shift towards regulated energy services  Depressed market conditions in Europe

 Sliding coal and carbon prices

 Low load factors of gas plants can affect the
company’s profitability

 Large debt-financed acquisitions could weaken
the company’s credit metrics over a couple of
years.

OPPORTUNITIES THREATS

Source: Company Website, Company Publications, Press Releases, Annual Reports, and MarketsAndMarkets Analysis

11.6.5 MNM VIEW

In 2014, Engie supplied 16.4 million metric tons of LNG through its fleet of 14 carriers to satisfy the
growing requirements of countries located far from gas fields. The company operates LNG terminals to
supply LNG to industrial and tertiary sector customers in Europe, Latin America, North America, and Asia-
Pacific, making it one of the largest players in the small-scale LNG industry globally. Engie operates one of
the longest distribution networks in Europe (196,940 km) through which it supplied 24 billion m³ of natural
gas in 2014.

113

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.7 IHI CORPORATION

11.7.1 BUSINESS OVERVIEW

IHI Corporation manufactures and sells equipment and machinery in Japan and globally. IHI Corporation
was formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd. and changed its name to IHI
Corporation in 2007. The company operates through four business segments, namely, resources, energy
and environment; social infrastructure and offshore facilities; industrial systems and general-purpose
machinery; and aero engine, space, and defense. It provides LNG receiving terminals and storage tanks
through social infrastructure and offshore facilities business segment. The company is one of the leading
global EPC contractors in the oil & gas industry with over 45 years of experience.

FIGURE 37 IHI CORPORATION: COMPANY SNAPSHOT

COMPANY AT A GLANCE - 2015 RECENT FINANCIALS

Founded: 1853 Revenue (USD Billion) 20.0 12.4 13.8 14.6
Headquarter: Tokyo, Japan 15.0 2013 2014 2015
Employees: 29,494 10.0
Revenue: USD 14.6 Billion
Ownership: Public (7013:TYO) 5.0
0.0

BUSINESS REVENUE MIX

11% 34% Aeso Engine, Space and
26% Defence

29% Resources, Energy, and
En vironment

Industrial Systems and
General-Purpose
Machinery
Social Infrastructure and
Offshore Facilities

Note: Average annual exchange rate taken in 2015, 1 JPY= 0.0095 USD; 2014, 1 JPY= 0.0095 USD; 2013, 1 JPY= 0.0095 USD, Year
ended as on 31st December 2015.

Source: Company Website and Annual Reports.

114

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.7.2 PRODUCTS OFFERED

Product Description
LNG Receiving Terminal
 In-ground LNG storage tank
Liquefaction Process Plant  Storage capacity of 250,000 kiloliters (kl)
 Two layered type tank which consists of PC (pre-stressed

concrete) outer tank, and 9% nickel steel inner tank

 Production capacity plant of 9,000,000 tons per year
 High-purity propylene production
 Additional heat exchangers to significantly boost heat energy

recovery efficiency

Source: Company Website

11.7.3 RECENT DEVELOPMENT

Date Approach Description
Agreement
April IHI Corporation was awarded an EPC contract by the Kinder Morgan, Inc. under an
2016 agreement for the construction of an LNG liquefaction plant at Elba Island, Georgia

April Agreement IHI Corporation was awarded an EPC contract by PTT LNG Company Limited for the
2014 construction of the LNG receiving terminal in the Map Ta Phut Industrial Estate located in
Rayong Province, Thailand.

Source: Press Releases

115

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.8 GAZPROM

11.8.1 BUSINESS OVERVIEW

GAZPROM focusses on geological exploration, transportation, production, processing, storage, and gas
sales as a vehicle fuel. GAZPROM is implementing both small and large-scale development projects in the
Arctic shelf, the Yamal Peninsula, Eastern Siberia and the Russian Far East, as well as a number of
hydrocarbon exploration and production projects globally. Presently, the company supplies LNG to more
than ten countries, namely, Japan, Korea, China, India, Taiwan, the U.K., the U.S., Kuwait, the UAE, and
Mexico.

FIGURE 38 GAZPROM: COMPANY SNAPSHOT

COMPANY AT A GLANCE - 2015 RECENT FINANCIALS

Founded: 1989 Revenue (USD Billion) 100.0 71.7 76.4 83.0
Headquarter: Moscow, Russia 80.0 2013 2014 2015
Employees: 462,400 60.0
Revenue: USD 83.0 Billion 40.0
Ownership: Public (MCX: GAZP) 20.0
0.0

BUSINESS REVENUE MIX

4% 3% 4% Gas Sales
7%
Refined Product Sales
26%
Electric and Heat Energy
Sales
Crude Oil and Gas
56% Condensate
Gas Transportation Sales

Ot hers

Note: Average annual exchange rate taken in 2015, 1 RUB= 0.01366 USD; 2014, 1 RUB= 0.01366 USD; and 2013, 1 RUB=
0.01366 USD, Year ended as on 31st December 2015.

Source: Company Website and Annual Reports.

116

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.8.2 PRODUCTS OFFERED

Product Description
 Russia’s first LNG plant with the annual capacity of 9.6
Sakhalin II
million tons built and came onstream in 2009
Vladivostok LNG  LNG plant with the annual capacity of 10 million tons
Baltic LNG  LNG plant with the annual capacity of 10 million tons
LNG regasification terminal in the
Kaliningrad Region  Daily capacity of 9 million cubic meters of gas
Source: Company Website

11.8.3 RECENT DEVELOPMENT

Date Approach Description

October Expansion GAZPROM announced to develop a program for a small scale LNG production, which
2016 includes a list of gas distribution stations and liquefaction technologies for LNG
production. The program involves the construction of mobile LNG filling stations and
July 2016 Expansion cryogenic filling facilities.

June 2016 Agreement GAZPROM announced to construct small-scale LNG plants in eastern Russia to target
Chinese markets, as the company already owns four export-oriented small-scale LNG
March Agreement plants in western European Russia.
2016
GAZPROM and Gasunie together agreed to build a small-scale LNG in the port of
Rostock (Germany) for receiving, storing, and shipping liquefied natural gas.

GAZPROM and Fluxys signed a framework agreement for the construction and
operation of LNG receiving terminals, LNG filling stations, and LNG bunkering
infrastructure in the European markets.

Source: Press Releases

117

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.9 SKANGAS AS

11.9.1 BUSINESS OVERVIEW COMPANY AT A GLANCE - 2015

Skangas AS, formerly known as Skangass AS, Founded: 2007
supplies liquefied natural gas (LNG) in industrial Headquarters: Tananger, Norway
processes and heavy-duty road transport for use as No. of Employees: 300
fuel in countries such as Finland, Denmark, Norway,
and Sweden. Skangas AS operates an LNG portfolio Note: This is a privately held company. Hence no financial
that consists of LNG liquefaction, purchase of feed information is available in the public domain
gas, and distribution of LNG by ships and trucks Source: Company Website
through receiving LNG terminals to customer
facilities. The company operates a liquefaction plant
in Risavika, Norway, coupled with small-scale LNG
terminals in Øra, Norway. Skangas AS operates as a
subsidiary of Gasum Oy.

11.9.2 PRODUCTS OFFERED

Product Features
Porvoo Plant  Annual production is up to 20 000 tons of LNG
 Plant receives feed gas from the Finnish pipeline grid
Skangas liquefaction plant in  Two truck-loading stations
Risavika  Three pressurized storage tanks can store up to 2100 m3 of LNG
 Provision to produce liquefied biogas (LBG)
Skangas Terminal, Lysekil
 Annual production capacity is 300,000 tons of LNG
Skangas Terminal, Pori  LNG bunkering facility for marine customers
 Storage capacity of 28,000 m3
Skangas Terminal, Øra
Source: Company Website Reports  Storage capacity at the Lysekil is 30,000 m3
 The terminal features an LNG tank that is 42 meters high
 Loading docks
 Process units (compressor and vaporizers)
 Natural gas pipeline

 LNG tank (height 35 m, outer diameter 42 m)
 Loading docks
 Process units (compressor and vaporizers)
 Three loading docks for road tankers
 Transformer building
 Heat production unit

 Storage capacity of 6400 m3 LNG

118

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.9.3 RECENT DEVELOPMENTS

Date Approach Description
Agreement
December Expansion Skangas AS signed an agreement with Statoil ASA, an oil and gas company in Norway
2016 for the reloading of small-scale LNG at Klaipeda LNG Terminal in Lithuania.

September Skangas AS has commissioned Finland’s first LNG import terminal, which is expected
2016 to support off-grid maritime, industrial, and heavy-duty road transport firms.

Source: Company Website and Press Releases

119

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.10 SOFREGAZ S.A.

11.10.1 BUSINESS OVERVIEW COMPANY AT A GLANCE - 2015

Sofregaz S.A. offers liquefaction, regasification, Founded: 2011
pipeline transmission, and pumping and compression Headquarters: Paris, France
services for the natural gas market in France and No. of Employees: 5,181
globally. The company has completed more than 100
projects in 90 countries ranging from front-end
engineering design to commissioning and start-up,
including procurement and construction. Sofregaz
S.A. is certified with ISO 9001, ISO 14001, OHSAS
18001; ISO-TS 29001 and SA 8000 standards. The
company operates as a subsidiary of STC sal.

11.10.2 PRODUCTS Note: This is a privately held company. Hence no financial
information is available in the public domain
Source: Company Website

Facility Description
 Capacity: 8.25 billion Nm3/year
Fos LNG Receiving Terminal (Fos  Client: GAZ DE FRANCE
Cavaou, France)
LNG Expansion at Revithoussa Island  Client: DESFA (Public Gas Corporation of Greece)
(Revithoussa Island, near Athens,
Greece)  Capacity: 2 x 160, 000 m3 full containment LNG tanks, one
jetty for 135,000 m3 LNG carriers, and 2 MTA vaporization
Hazira LNG Receiving Terminal (Gulf facilities
of Khambat, Gujarat, India)
 Client: Shell
Guangdong LNG Receiving Terminal  Capacity: 3.5 MT/Year
(Guangdong Province, China)  Client: GUANGDONG LNG JEO
 Capacity: 2,7 billion Nm3/year
Bilbao LNG Receiving Terminal  Client: BILBAO BIZKAIA GAS Consortium
(Bilbao, Spain)  Client: GEE International
 Capacity: Gas turbine DR 63 G (LM 6000 PD)
Cogeneration Facilities (France)  Capacity: liquefaction capacity of 180m3/day
 Client: Shanghai Municipal Gas Company (SMGC)
Shanghai LNG Peak-Shaving Facilities  Capacity: 0.6 billion m3/year
(China)  Client: DEPA (Public Gas Corporation of Greece)

Revithoussa Island LNG Receiving
Terminal (Greece)

Note: No recent developments specific to the small-scale LNG market is available for the company for the period considered in the
report

Source: Company Website and Secondary Research

120

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.11 DRESSER-RAND GROUP, INC.

11.11.1 BUSINESS OVERVIEW COMPANY AT A GLANCE - 2015

Dresser-Rand Group, Inc. designs and manufactures Founded: 2004
rotating equipment solutions for industries such as Headquarters: Houston, U.S.
oil & gas, petrochemical, and power generation No. of Employees: 11,000
globally. Dresser-Rand Group Inc. operates in two
business segments, namely, new units, and Note: This is a privately held company. Hence no financial
aftermarket parts and services. The company information is available in the public domain
operates as a subsidiary of Siemens Source: Company Website
Aktiengesellschaft. Dresser-Rand Group Inc. together
with Siemens offers compressors and gas turbines to
natural gas market worldwide. Both the companies
have a combined experience to address the LNG
needs of the customers including all-electric LNG,
floating LNG, small and mid-scale LNG facilities, and
a micro-scale LNG production plant.

11.11.2 PRODUCTS OFFERED

Product Features
 Discharge pressures ranging up to more than 15,000 psig
DATUM® Centrifugal Compressors
(1000 bar)
LNGo Liquefaction Plant  Maximum flow rates from 5,400 cfm (9,200 m3/h) to 700,000
LNGo Micro-scale LNG Production
System cfm (1,200,000 m3/h)
Source: Company Website  Power ratings to more than 120,000 bhp (90 MW)

 Capacity up to 30,000 gallons of LNG per day

 Capable of producing up to 30,000 gallons of LNG per day

11.11.3 RECENT DEVELOPMENTS

Date Approach Description

November Agreement Dresser-Rand Group, Inc. received an order for two LNGo natural gas liquefaction
2015 systems from Elizabethtown Gas, a subsidiary of AGL Resources based in New
Jersey. The liquefaction systems are expected to produce approximately 13,500
gallons of liquefied natural gas (LNG) per day.

121

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.12 PROMETHEUS ENERGY

11.12.1 BUSINESS OVERVIEW

Prometheus Energy produces, sells, and distributes

LNG to the industrial, drilling, and mining sectors in COMPANY AT A GLANCE - 2015

North America. Prometheus Energy provides turnkey

solutions to convert diesel, propane, and other crude- Founded: 2003
derived fuel users to clean LNG that results in Headquarters: Houston, U.S.
reduced environmental footprint and fuel cost. The No. of Employees: 200
company captures methane gas from stranded

sources including stranded gas wells, landfills,

agricultural operations, wastewater treatment

facilities, and coal beds and converts it into LNG.

Prometheus Energy also operates a fleet of LNG Note: This is a privately held company. Hence no financial
tankers and refueling stations. Prometheus Energy is information is available in the public domain
privately held by Shell Technology Ventures and Black Source: Company Website

River Asset Management LLC, wholly owned subsidiary of Cargill.

11.12.2 PRODUCTS OFFERED

Product Features
Liquefied Petroleum Gas (LPG) Used in drilling, industrial, and mining sectors
Source: Company Website

11.12.3 RECENT DEVELOPMENT

Date Approach Description

April 2015 Agreement Prometheus Energy entered into an agreement with WPX Energy (U.S.) to supply
LNG plus related equipment and services to utilize LNG in its drilling operations

Source: Company Website, and Press Releases

122

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

11.13 OTHER PLAYERS IN THE MARKET

11.13.1 PLUM ENERGY

Plum Energy was established in 2011 and is headquartered in Seattle, U.S. The company offers
liquefaction, LNG transportation and delivery, regasification and on-site storage services to industrial and
transportation markets. Plum Energy also designs, builds, develops, installs, commissions, and maintains
small-scale LNGs. The company also assists various industrial sectors with the conversion to LNG,
including oil & gas exploration and production, mining, agriculture, and other off-grid industrial
applications. Plum Energy also sells LNG and assists its customers to switch from other fuels to natural
gas.

11.13.2 EXCELERATE ENERGY L.P.

EXCELERATE ENERGY, L.P. was established in 2003 and is headquartered in Texas, U.S. The company
provides floating LNG solutions including storage, regasification services, shipping and operations, trading
and chartering services, and offloading services. These services allow natural gas suppliers to monetize
both onshore and offshore gas reserves. EXCELERATE ENERGY L.P. has executed several regasification
projects including Guanabara Bay LNG import terminal, Hadera Deepwater LNG terminal, Jebel Ali LNG
import terminal, and Port Qasim LNG import terminal, among others.

11.13.3 CRYOSTAR SAS

Cryostar SAS was established in 1966 and is headquartered in Hésingue, France. The company designs,
manufactures, and distributes cryogenic equipment for liquefied natural gas (LNG), industrial gas,
hydrocarbon, and clean power generation applications to customers in France and globally. The company
offers small-scale LNG liquefaction plants of capacity less than 1 MTPA for the onshore application.
Cryostar SAS also supplies LNG vaporizers, high duty (vapor return) compressors, and natural gas heat
exchangers required for loading, unloading, and tank maintenance operations. Cryostar SAS operates as a
subsidiary of The BOC Group Limited. The company is also a member of The Linde Group since 2006.

123

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

12 APPENDIX

12.1 INSIGHTS FROM INDUSTRY EXPERTS

Increasing deployment of refueling infrastructure is expected to drive the demand for
small-scale LNG in North America.

Shale evolution has stipulated the production of LNG in the U.S.

Increasing demand of LNG in marine transport is expected to drive the small-scale LNG
market in Europe .

124

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

12.2 DISCUSSION GUIDE

Q. 1. What are your views on the growth prospects of the global small-scale LNG market? What is the current scenario?
Your viewpoint: _________________________________________________________________

Q. 2. What was the global market size of small-scale LNG in 2015 and what will be the CAGR for the next five years
(2016–2021)?

Region Market size (MTPA)/Market share (%), 2015 CAGR (20162021)
North America
Europe
Asia-Pacific
South America
Middle East & Africa

Your viewpoint: ________________________________________________________________

Q. 3. What was the percentage contribution of the following types in the global small-scale LNG market in 2015? What
are the key factors that will drive the fastest-growing segments of the market between 2016 and 2021? (Kindly
validate the market segmentation)

Type Market share (%), 2015 CAGR (20162021)
Regasification Terminal
Liquefaction Terminal

Your viewpoint: _________________________________________________________________

Q. 4. What was the percentage contribution of the following end users in the global small-scale LNG market in 2015?
What are the key factors that will drive the fastest-growing segments of the market between 2016 and 2021?
(Kindly validate the market segmentation)

Type Market share, 2015 CAGR (20162021)
Heavy-Duty Vehicles
Electric Power Generation
Marine Transport
Others

Your viewpoint: _________________________________________________________________

125

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

Q. 5. What was the percentage contribution of the following countries to the Asia-Pacific small-scale LNG market in
2015? (Kindly validate the list of countries and add any important country, if required.)

Country Market share 2015 CAGR (2016–2021) Top two applications and their market
shares
China
Japan
India
South Korea
Taiwan
Singapore
Rest of Asia-Pacific

Your viewpoint: _________________________________________________________________

Q. 6. What was the percentage contribution of the following countries to the small-scale LNG market in North America in
2015?

Country Market share, 2015 CAGR (20162021) Top two applications and their
market shares
U.S.
Canada
Mexico

Your viewpoint: _________________________________________________________________

Q. 7. What was the percentage contribution of the following countries to the small-scale LNG market in Europe in 2015?
(Kindly validate the list of countries and add any important country, if required.)

Country Market share, 2015 CAGR (20162021) Top two applications and their
market shares
U.K.
France
Spain
Portugal
Norway
Italy
Rest of Europe

Your viewpoint: _________________________________________________________________

126

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

Q. 8. What was the percentage contribution of the following countries to the small-scale LNG market in the Middle East
& Africa in 2015? (Kindly validate the list of countries and add any important countries, if required)

Country Market share, 2015 CAGR (2016-2021) Top two applications and their market
shares
UAE
Israel
Kuwait
Rest of the Middle East
and Africa

Your viewpoint: _________________________________________________________________

Q. 9. What was the percentage contribution of the following countries to the small-scale LNG market in South America
in 2015? (Kindly validate the list of countries and add any important countries, if required)

Country Market share, 2015 CAGR (2016-2021) Top two applications and their market
shares
Brazil
Chile
Argentina
Colombia
Rest of South America

Your viewpoint: _________________________________________________________________

Q. 10. Kindly validate the drivers, restraints, and opportunities in the global small-scale LNG market.

Drivers  Energy cost advantage of LNG over alternate energy sources for end-
users
Restraints
Opportunities  Environmental benefits
 Fiscal regime and subsidies

 Highly capital intensive

 Evolving LNG supply/demand picture
 Integration of new technologies

Your viewpoint: _________________________________________________________________
Q. 11. What are the upcoming technologies that will have significant effect on the market growth in the future?
Your viewpoint: _________________________________________________________________

127

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

Q. 12. Which will be the revenue pockets for the market in the next five years (2016–2021)?
Your viewpoint: ________________________________________________________________
Q. 13. What will be your company’s position in this market in the next five years (2016–2021)?
Your viewpoint: _________________________________________________________________

128

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

12.3 KNOWLEDGE STORE: MARKETSANDMARKETS SUBSCRIPTION
PORTAL

Knowledge Store contains MarketsandMarkets’ unique market insights. As a subscriber you have access
to all of the published titles and any new ones added over the course of the subscription period. You can
subscribe to specific number of reports or domains of your interest.

Knowledge Store enables you to:

 View & download all subscribed reports from a single, online platform
 Contact our analysts to answer any questions related to our reports or request a custom

research
 Share comments on specific reports with the other users of your organization
 Suggest titles/topics to our research teams that you would like us to cover in our future reports
 Identify reports published on the high growth markets within your industry

Get started now by requesting a demo and learning more about Knowledge store - www.mnmks.com

MarketsandMarkets Knowledge Store Snapshot

129

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021
MarketsandMarkets Knowledge Store: Chemical and Material

130

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

12.4 INTRODUCING RT: REAL-TIME MARKET INTELLIGENCE

Revenue Tree (RT) is an interactive platform that systematically helps the users to enhance revenue by
identifying the high potential growth markets and track the same on a real-time basis on a competitive,
customer-centric, and an ecosystem level.

The in-built intelligence of the tool auto-identifies the competitors, allied markets, market size, in terms of
value, and customers, and helps the users to identify tangible hotspots of revenue growth, both in the
existing and new markets. The unique feature of RT is the ecosystem, which is linked to a wide range of
industries and markets.

Features and benefits of RT:

 Visual presentation of market data
 Real-time information on market trends and developments
 Information specific to an application, type, or region
 Competitive intelligence (by tracking developments of major players)
 Forward integration in value chain to find potential clients
 Comparison of two or more markets

131

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

12.5 AVAILABLE RT SNAPSHOT

With the given market data, MarketsandMarkets offers customizations according to the specific needs of
the companies. The following customization options are available for the report:

Product Analysis

 Product matrix that gives a detailed comparison of product portfolio of each company

Regional Analysis

 Further breakdown of a region with respect to a particular country

Company Information

 Detailed analysis and profiling of additional market players (up to five)

12.6 RELATED REPORTS

Sr. No. Report title Published date

Compressed Natural Gas (CNG) Tanks/Cylinders Market July 2015

By Type (Type 1, Type 2, Type 3, Type 4), by Raw Materials (Metal, Glass Fiber,
1 Carbon Fiber), by Vehicle Type (Light Duty, Medium Duty, Heavy Duty), & Region -

Global Forecasts to 2020

http://www.marketsandmarkets.com/Market-Reports/cng-tank-cylinder-market-
237731610.html

132

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

12.7 AUTHOR DETAILS

Lakshmi Narayanan "A technically proficient and result driven professional with over 15 years of
experience and has been associated on key roles with firms like IPCL, Anabond Ltd,
Associate Director Frost & Sullivan, Bussetti Gmbh and Jet Airways.
– Chemicals and Materials
He holds rich experience in technology, market research experience in Chemicals
Dr. A.P. Joshi and Materials domain and lead a global, cross functional team of consultants for
projects with major chemical companies with actionable insights. Most of the
Principal Consultant projects are in the sales & marketing, business development, and strategic planning
- Chemicals and Materials and implementation functions; Key consulting projects undertaken are distribution
channel optimization, new product development, new market entry strategy, pricing
strategy, growth strategy, identification of acquisition targets, and due diligence of
targets."

"PhD in Chemical Technology with over 25 years of experience in bio-chemicals,
specialist having a detailed knowledge of the broad spectrum of chemical products
and material derivatives that can be produced from crude oil based feedstocks. This
expertise extends from the full range of feedstocks through to intermediaries –
“platform” chemicals and the major end use products: lubricants, plastics, solvents,
surfactants and coatings.

Designed and executed many market research projects in the chemicals vertical
including coatings for leading industry players. He has authored over 100 techno-
commercial papers on variety of chemicals and related industries. He has a strong
hold on automotive refinish, packaging, can and coil, packaging and marine
coatings

He provides objective analysis of the full value chain of the bio-chemical industry in
different parts of the world. He helps clients plan effectively and successfully to
identify and seize opportunities and to pre-empt threats."

Contributors Nirmal Chandran - Associate Manager
Pranshul Khanna - Research Analyst

133

April 2017 © MarketsandMarkets

SMALL-SCALE LNG MARKET - GLOBAL FORECAST TO 2021

Disclaimer: MarketsandMarkets' strategic analysis services are limited publications containing valuable
market information that is provided to a select group of customers in response to orders. Our customers
acknowledge, when ordering, that MarketsandMarkets’ strategic analysis services are for their internal use
and not for general publication or disclosure to any third party. Quantitative market information is primarily
based on interviews, and is therefore subject to fluctuations.

MarketsandMarkets does not endorse any vendor, product, or service depicted in its research publications.
MarketsandMarkets’ strategic analysis publications are opinions based on its research and should not be
construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with
respect to this research, including any warranties of merchantability or fitness, for any particular purpose.

MarketsandMarkets takes no responsibility for any incorrect information supplied to it by manufacturers or
users.

Trademarks, copyrights, and other forms of intellectual property belong to MarketsandMarkets or their
respective owners and are protected by law. Under no circumstance may any of these be reproduced, copied,
circulated in any form, without the prior written approval of MarketsandMarkets or its owner—as the case may
be.

No part of this strategic analysis service may be given, lent, resold or disclosed to any third party, without
written permission from MarketsandMarkets.

Reproduction and/or transmission in any form and by any means, including photocopying, mechanical,
electronic, recording or otherwise, without the permission of MarketsandMarkets, is prohibited.

For information regarding permission, contact:
Tel: 1-888-600-6441

134

April 2017 © MarketsandMarkets