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7.2 LIQUEFACTION TERMINAL
Liquefaction terminal is the most capital and energy-intensive component of the small-scale LNG value
chain. It includes expansion cycle and single mixed refrigerant processes that cool down natural gas to the
point where it becomes converted to a liquid, at an average temperature of -161 ºC. The gas transfers heat
to a refrigerant fluid that has been previously cooled to attain this low temperature. In effect, the
refrigerant fluid takes the heat from natural gas until the gas is converted into a liquid. Before the
liquefaction process, the feed gas has to undergo certain treatment processes such as filtration and solid
removal, mercury removal, dehydration, and liquid separation.
Most of the existing small-scale liquefaction terminals run their main rotating equipment on electric power,
as the liquefaction terminal is connected to the public grid. Components such as ethane or ethylene,
propane or propylene, butane, and pentane are required for small-scale liquefaction terminals based on a
mixed refrigerant cycle. Small-scale LNG producers purchase these components from nearby
petrochemical facilities, while in conventional scale LNG plants these components are typically produced in
a dedicated process unit.
TABLE 2 SMALL-SCALE LNG MARKET SIZE IN LIQUEFACTION TERMINAL, BY REGION
2014–2021 (MTPA)
Region 2014 2015 2016 2017 2018 2019 2020 2021
North America 0.7 0.7 0.7 0.7 0.7 0.7 10.8 10.8
Europe 5.4 5.4 5.4 5.4 5.4 5.4 5.4 5.4
Asia-Pacific 15.8 18.2 18.8 18.8 18.8 18.8 29.5 29.5
Middle East and Africa 32.3 33.2 33.2 33.2 33.2 33.2 36.3 36.8
South America 4.3 4.6 4.6 4.6 4.6 4.6 4.8 4.8
Total 58.5 62.2 62.8 62.8 62.8 62.8 86.6 87.1
Source: Related Research Publications, Government Publications, Expert Interviews, and MarketsandMarkets Analysis
Proposed small-scale liquefaction capacities have expanded drastically and totaled 70.8 MTPA in 2015. It
is expected that only a few projects will come into operation as demand for small-scale LNG is much lower
than the amount produced. Small-scale LNG production activities slowed down considerably in 2015 as a
result of market oversupply and demand uncertainty in the strategic import markets such as the U.S.,
Indonesia, and Qatar.
7.3 REGASIFICATION TERMINAL
At regasification terminal, LNG is received and stored cryogenically in the liquid phase. In the regasification
process, the LNG is heated to a point where it gets converted into natural gas. This process occurs
naturally at atmospheric temperatures and is accelerated by passing LNG through a warmer medium.
Regasification facilities are built near the marketplace that receives and dock LNG, offload and store the
LNG, pump, and vaporize it into natural gas. The terminals then send out the revalorized natural gas into
the domestic pipeline network as per the requirement of end users.
Technologies used in the regasification process are relatively less complex and expensive than the
technologies used in the liquefaction process. Regasification process is the least expensive phase in the
LNG value chain, unlike liquefaction process which is highly capital intensive. LNG storage tanks, LNG
pumping equipment, tanker berth and unloading arms, regasification system, metering systems, and
regasification systems are some of the components in the regasification terminals.
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TABLE 3 SMALL-SCALE LNG MARKET SIZE INREGASIFICATION TERMINAL, BY REGION,
2014–2021 (MTPA)
Region 2014 2015 2016 2017 2018 2019 2020 2021
North America 33.3 33.3 33.3 33.3 33.3 33.3 33.3 33.3
Europe 54.7 56.5 56.5 56.5 56.5 56.5 66.0 66.0
Asia Pacific 62.3 68.4 68.4 68.4 68.4 68.4 77.1 77.1
Middle East and Africa 1.7 1.7 1.7 1.7 1.7 1.7 4.0 4.0
South America 21.9 26.1 26.1 26.1 26.1 26.1 24.9 24.9
Total 173.9 186.1 186.1 186.1 186.1 186.1 205.4 205.4
Source: Related Research Publications, Government Publications, Expert Interviews, and MarketsandMarkets Analysis
Global small-scale regasification terminal capacity reached 186.1 MTPA in 2015. More than 55% of the
world’s small-scale regasification terminal capacity is located within the leading five countries including
Japan that holds 17% of the global small-scale regasification terminal capacity, the U.S. (15.1%), South
Korea (8.8%), Spain (8.3%) and the U.K. (7.5%). Currently, the world’s small-scale regasification terminal
capacity is much higher than liquefaction terminal capacity. Hence, the utilization rate of these terminals is
low which is below 50% due to their high number.
In 2015, the majority of the new regasification terminals were introduced in emerging markets such as
UAE, Malaysia, Singapore, and Israel. Japan, which is the world’s largest importer of LNG, has brought two
new regasification terminals in 2015. In addition, Poland received its first commissioning cargo in 2015,
and its onshore regasification terminal is expected to achieve commercial operations in 2016. Currently,
15 new regasification terminals are under construction of which eight regasification terminals are located
in China. As a result, global small-scale regasification terminal capacity is projected to reach 205.4 MTPA
by 2021.
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8 SMALL-SCALE LNG TERMINAL MARKET, BY END USER
(DEMAND SIDE)
KEY FINDINGS
Heavy-duty vehicles dominated the market, with a share of 61.1% in 2015.
One of the major drivers for LNG as a ship bunker fuel is emission regulation globally.
Fuel cost is one of the major drivers of the market in heavy-duty vehicles segment, and it
strongly depends on excise taxation.
Stringent emissions standards such as Euro 6 can easily be met by using natural gas depending
on the engine technology.
Local air quality requirements, availability of existing LNG infrastructure, strategic energy
reserve policies, and availability of residual fuels are some of the drivers augmenting the
demand for natural gas in electric power generation.
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8.1 INTRODUCTION
The global small-scale LNG terminal market is segmented on the basis of end user into heavy-duty
vehicles, electric power generation, maritime transport, and others (rail transport, space heating, and air
conditioning)end user. Natural gas has been liquefied to LNG to transport it from continents to continents
in LNG vessels for decades. Earlier, LNG was regasified and injected into the pipeline systems at the import
terminal and utilized for conventional purposes such as cooking, heating, and power generation.
During the past few years, there has been an increased use of natural gas as a transport fuel. Direct use of
LNG, instead of CNG, extends the driving range of vehicles. This makes LNG an attractive fuel for shipping,
heavy duty vehicles, and power generation as compared to diesel. The International Gas Union (IGU)
defined small-scale liquefaction and regasification terminals as facilities with a capacity less than 1 MTPA
and vessels with an LNG storage capacity of less than 30,000 cubic meters.
One of the major drivers for LNG as a ship bunker fuel is emission regulation (MARPOL 73/78), which is
expected to play a major role in augmenting the demand of small-scale LNG in bunkering applications. SOx
requirements can always be met with LNG due to its low sulfur content. Similarly, NOx requirements are
also met depending on the engine technology.
FIGURE 19 HEAVY-DUTY VEHICLES TO DOMINATE THE SMALL-SCALE LNG MARKET BETWEEN
2016 AND 2021
Market Size (MTPA) 200.0
180.0
160.0 Heavy Duty Vehicles Electric Power Maritime Transport Others
140.0 Generation
120.0 160.2 40.4 19.8
100.0 181.6 42.0 45.4 23.9
80.0 48.2
60.0
40.0
20.0
0.0
2016
2021
Note: Others include rail transport, space heating, and air conditioning.
Source: Related Research Publications, Government Publications, Expert Interviews, and MarketsandMarkets Analysis
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TABLE 4 SMALL-SCALE LNG MARKET SIZE, BY END USER, 2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016-2021)
Heavy Duty 153.4 156.7 160.2 163.8 167.6 171.6 175.9 181.6
Vehicles 40.0 41.0 42.0 43.0 44.2 45.3 46.6 48.2 2.5%
Electric Power 38.9 39.6 40.4 41.2 42.1 43.1 44.1 45.4
Generation 18.5 19.1 19.8 20.5 21.3 22.1 22.9 23.9 2.8%
Maritime 275.2 282.1 289.4 299.2
Transport 250.8 256.5 262.4 268.6 2.4%
3.8%
Others 2.7%
Total
Note: *Others include medical, chemical processing, and industrial equipment
Source: Related Research Publications, Government Publications, Expert Interviews, and MarketsandMarkets Analysis
Heavy-duty vehicles dominated the market, with a share of 62.2% in 2015.The market in this segment is
projected to register a CAGR of 2.6%, in terms of volume, by 2021. Fuel cost is one of the major drivers for
the market in heavy-duty vehicles segment, and it strongly depends on excise taxation. Stringent emission
standards such as Euro 6 can easily be met by using natural gas depending on the engine technology. The
price of natural gas strongly depends on local tax regimes, since the share of the excise duties in the road
fuel prices can be large. Similarly, the additional potential of small-scale LNG in heavy-duty vehicles can be
realized, when supplied as CNG at fuel stations.
8.2 HEAVY-DUTY VEHICLES
For many decades, sulfur emission limits have been defined for heavy-duty vehicles. In most countries
such as the U.S., Canada, Japan, and China, the diesel sulfur content was initially set to 350 to 500 ppm,
which then was reduced to 10 to 15 ppm in the past few years. Utilization of LNG fueled heavy-duty
vehicles can make the economics of natural gas utilization most favorable. High fuel usage and fuel cost
savings are some of the factors that can have a huge impact on the cost of fueling infrastructure of a
vehicle vehicle.
The emergence of natural gas fueled vehicles into different applications is expected to become more
viable, as more cost effective products are offered, and the fueling infrastructure expands. Lack of
refueling infrastructure, driving range, and vehicle cost are some of the major hurdles in the growth of the
small-scale LNG market in heavy-duty vehicles. LNG is the most viable option for long range use of some
heavy-duty vehicle such as long-haul trucks. The amount of natural gas that can be stored in the cryogenic
tanks in a liquefied state exceeds compressed natural gas (CNG). However, the density of LNG can
considerably vary over a range of saturation pressures and storage temperatures. LNG vehicle fuel system
deliver the natural gas to the engine at a required supply pressure while maximizing the fuel density at the
vehicle tanks and the fueling station.
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TABLE 5 SMALL-SCALE LNG MARKET SIZE IN HEAVY-DUTY VEHICLES, BY REGION,
2014–2021 (MTPA)
Region 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016-2021)
North America 31.4 31.8 32.2 32.6 33.1 33.6 34.1 35.0
Europe 22.2 22.5 22.8 23.2 23.5 23.9 24.3 24.9 1.7%
Asia-Pacific 65.6 67.3 69.1 71.0 73.0 75.1 77.3 80.2 1.8%
MEA 10.1 10.4 10.6 10.9 11.2 11.6 3.0%
South America 9.6 9.9 25.9 26.6 27.3 28.1 28.9 29.9 2.8%
Total 24.6 25.2 160.2 163.8 167.6 171.6 175.9 181.6 2.9%
153.4 156.7
2.5%
Source: Related Research Publications, Government Publications, Expert Interviews, and MarketsandMarkets Analysis
Heavy-duty vehicles dominated the small-scale LNG market, with a share of 62.2% in 2015. The market in
this segment is projected to register a CAGR of 2.6% in terms of volume till 2021. The growth of natural
gas fueled vehicles mainly depends on environmental movements and national security policies. Similarly,
the sustainability of natural gas fueled vehicles depends on the industry’s ability to provide the fuel at a
reasonable cost. Flexible refueling infrastructure is required to provide the natural gas for a suitable driving
range. Furthermore, long-haul heavy-duty vehicles are expected to consume 50% of the LNG, owing to the
flexible refueling infrastructure and favorable business.
8.3 ELECTRIC POWER GENERATION
Natural gas has become one of the popular fuels for the generation of electricity, owing to its clean burning
nature. In the past few decades, most electric utility companies chose nuclear and coal powered plants.
Since the 1990s, natural gas has become a fuel of choice for power plants, due to environmental,
economic, and technological changes. Regulations related to the emissions by power plants have insisted
electric power producers to come up with innovative methods of producing power while minimizing
environmental damage.
Oil-fueled power stations on remote decentralized locations have been considered relevant for small-scale
LNG, particularly when dual-fuel operation with respect to both oil and natural gas is possible. As a result,
only a part of electricity generation is considered to be relevant for the substitution by small-scale LNG, as
coal-fired power stations are more likely to be supplied with large-scale LNG.
TABLE 6 SMALL-SCALE LNG MARKET SIZE IN ELECTRIC POWER GENERATION, BY REGION,
2014–2021 (MTPA)
Region 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016-2021)
North America 5.0 5.1 5.2 5.3 5.4 5.6 5.7 5.9
3.6 2.6%
Europe 2.9 3.0 3.1 3.2 3.3 3.4 3.5 9.6 3.1%
24.0 4.0%
Asia-Pacific 7.3 7.6 7.9 8.2 8.5 8.8 9.1 3.3 2.3%
46.4 3.8%
MEA 20.7 21.1 21.5 21.9 22.3 22.8 23.3
2.8%
South America 2.6 2.6 2.7 2.8 2.9 3.0 3.2
Total 38.4 39.4 40.4 41.4 42.5 43.6 44.8
Source: Related Research Publications, Government Publications, Expert Interviews, and MarketsandMarkets Analysis
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Local air quality requirements, availability of existing LNG infrastructure, strategic energy reserve policies,
and availability of residual fuels are some of the drivers augmenting the demand for natural gas in electric
power generation. Small-scale LNG replacement in oil-fueled power plants is expected to increase when
plant’s capacity is completely utilized. Oil-fueled power plants, particularly utilized as an emergency power
source are not feasible for small-scale LNG conversion, due to the high capital expenditure of small-scale
LNG storage compared to diesel. Furthermore, fixed pipeline grid is expected to be a more safe and viable
solution for the complete utilization of a small-scale LNG distribution network.
8.4 MARINE TRANSPORT
LNG is preferred in the marine transport over heavy fuel oil (HFO), due to its low SOx, NOx, and CO2 content
levels. In marine applications, LNG is preferred than CNG although, LNG-fueled ships require storage tanks
up to twice the size of a conventional oil bunker. However, capital expenditure in LNG-fueled ships can
depend on the configuration of the storage tanks, throughput, and size of the facility, and a number of
bunkering vessels required. Similarly, additional capital expenditure can be needed to organize jetties for
smaller vessels, as there are a number of regulatory issues associated with operating an LNG import
facility.
TABLE 7 SMALL-SCALE LNG MARKET SIZE IN MARINE TRANSPORT, BY REGION,
2014–2021 (MTPA)
Region 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016-2021)
North America 3.1 3.1 3.2 3.2 3.3 3.4 3.4 3.5
Europe 28.5 28.9 29.3 29.7 30.2 30.7 31.2 32.0 2.1%
Asia-Pacific 1.8%
MEA 4.7 4.9 5.1 5.4 5.6 5.9 6.1 6.5 4.7%
South America 1.7 1.8 1.8 1.9 2.0 2.1 2.2 2.2 4.1%
Total 0.9 0.9 1.0 1.0 1.0 1.1 1.1 1.2 4.8%
38.9 39.6 40.4 41.2 42.1 43.1 44.1 45.4
2.4%
Source: Related Research Publications, Government Publications, Expert Interviews, and MarketsandMarkets Analysis
The use of LNG in marine transport has been triggered, owing to the concerns relating to marine transport
sulfur oxide (SOx) and nitrogen oxide (NOx) emissions from ship exhaust. Environmental regulations for
both global maritime and emission control areas (ECA) zones to lower SOx, CO2, and NOx emissions are
some of the major factors augmenting the demand for LNG in maritime transport globally.
The International Maritime Organization (IMO) emissions legislation for short-sea shipping and deep-sea
shipping focusses on the reducing the level of NOx and SOx. The treaty for the IMO emissions legislation for
short-sea shipping and deep-sea shipping is known as Marine Pollution (MARPOL).
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8.5 OTHERS
Others include end users such as rail transport, space heating, and air conditioning. In North America,
companies such as Caterpillar and General Electric are developing LNG fueled engines. However, large-
scale deployment of LNG fueled rail engines is expected to take place in the coming years, as the rail
market itself is small. Additionally, natural gas is also considered as a dominant fuel for space heating
applications. However, some countries such as Portugal, Spain, and Greece use other fuel widely such as
heating oil and propane, as large part of countries do not have natural gas coverage.
TABLE 8 SMALL-SCALE LNG MARKET SIZE IN OTHER END USERS, BY REGION, 2014–2021 (MTPA)
Region 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016-2021)
North America 2.6 2.7 2.7 2.8 2.9 3.0 3.1 3.2
Europe 5.6 5.8 6.1 6.3 6.6 6.8 7.1 7.4 3.0%
Asia-Pacific 6.2 6.5 6.7 7.0 7.2 7.5 7.8 8.2 4.2%
MEA 2.2 2.3 2.3 2.4 2.5 2.5 2.6 2.7 4.0%
South America 1.9 1.9 2.0 2.1 2.2 2.2 2.3 2.4 3.1%
Total 18.5 19.1 19.8 20.5 21.3 22.1 22.9 23.9 4.0%
3.8%
Source: Related Research Publications, Government Publications, Expert Interviews, and MarketsandMarkets Analysis
Natural gas can provide an environmentally friendly solution for air conditioning, probably at a lower price
compared to electrical energy. Currently, the market for small-scale LNG in air conditioning is growing in
the U.S. and is favored due to the peak cost of electricity and its high demand. Furthermore, natural gas
climate control technology is well established in Japan and is likely to increase the demand for small-scale
LNG in air conditioning in the coming years.
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9 SMALL-SCALE LNG MARKET, BY REGION
KEY FINDINGS
From the demand-side, Asia-Pacific is the largest market for small-scale LNG and accounted for
a share of 33.6% of the global market, in terms of volume, in 2015.
Japan leads the market with respect to small-scale LNG demand, in terms of volume and
accounted for a share of 16.6% of the global market in 2015.
From the demand-side, the small-scale LNG market in Asia-Pacific registered the highest CAGR
of 3.3% between 2016 and 2021, owing to the increasing demand for small-scale LNG on the
domestic front by end users such as heavy-duty vehicles and electric power generation.
Partnerships and agreements between the market players are expected to benefit the small-
scale LNG industry, mainly for LNG customer (regasification terminals) to become the
independent pipeline natural gas suppliers.
In Europe, countries such as Spain and the U.K. have proposed building new small-scale
liquefaction and regasification terminals, supported by the EU subsidies, which is approximately
10 to 20% of the total development costs.
Additionally, enforcement of environmental benefits imposed by government through
regulations and policies is expected to augment the demand of LNG from small-scale utilities
globally.
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9.1 INTRODUCTION
The small-scale LNG market is divided into five major regions, namely, North America, Europe, Asia-Pacific,
MEA, and South America. The global market size of small-scale LNG, in terms of volume, is estimated to be
262.4 MTPA in 2016. In 2015, Asia-Pacific accounted for the largest share of 33.6% of the global market,
followed by Europe with a share of 24.1%. Additionally, Asia-Pacific has emerged as an important
consumer due to the increasing demand for small-scale LNG on the domestic front by end users such as
heavy-duty vehicles and electric power generation. Traditionally, small-scale LNG production has been
considered as a significant business in Asia-Pacific, North America, and Europe. Partnerships and
agreements between the market players are expected to benefit the small-scale LNG industry, mainly for
LNG customer (regasification terminals) to become the independent pipeline natural gas suppliers.
FIGURE 20 REGIONAL SNAPSHOT (2016–2021): CHINA AND SINGAPORE ARE THE
EMERGING HOTSPOTS
Canada Norway South
2.2% U.K. 2.7% Korea
1.8% 2.6%
U.S.
1.7% France Italy China Japan
2.5% 3.1% 5.0% 2.8%
Mexico Taiwan
3.3% Portugal Spain Kuwait India 4.5%
2.6% 1.6% 2.2% 4.3%
Brazil Singapore
2.8% Colombia Israel UAE 4.8%
4.1% 3.1% 2.4%
Argentina
Chile 3.0%
3.5% 2%–2.9% CAGR 3%-4% CAGR
<2% CAGR >4% CAGR
Source: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis
Asia-Pacific and Europe dominated the global small-scale LNG market with a total market share of 57.8%
in 2015. Asia-Pacific is the leading market followed by Europe and North America. In Europe, countries
such as Spain and the U.K. have proposed building new small-scale liquefaction and regasification
terminals, supported by EU the subsidies, which are approximately 10%-20% of the total development
costs. Additionally, environmental regulations and policies imposed by the government are expected to
augment the demand for LNG from small-scale utilities, globally.
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TABLE 9 SMALL-SCALE LNG MARKET SIZE, BY REGION (SUPPLY SIDE), 2014–2021 (MTPA)
Region 2014 2015 2016 2017 2018 2019 2020 2021
North America 34.1 34.1 34.1 34.1 34.1 34.1 44.1 44.1
Europe 60.1 61.9 61.9 61.9 61.9 61.9 71.4 71.4
Asia-Pacific 78.1 86.7 87.3 87.3 87.3 87.3 108.6 108.6
MEA 34.0 35.0 35.0 35.0 35.0 35.0 40.3 40.8
South America 26.1 30.7 30.7 30.7 30.7 30.7 29.7 29.7
Total 248.3 248.9 248.9 248.9 248.9 294.0 294.5
232.3
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
TABLE 10 SMALL-SCALE LNG MARKET SIZE, BY REGION (DEMAND SIDE), 2014–2021 (MTPA)
Region 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016-2021)
North America 42.0 42.7 43.3 44.0 44.8 45.5 46.4 47.6
Europe 60.8 61.9 62.9 64.0 65.2 66.5 67.8 69.7 1.9%
Asia-Pacific 83.9 86.3 88.8 91.5 94.3 97.3 100.4 104.4 2.1%
MEA 34.2 35.0 35.7 36.6 37.4 38.3 39.3 40.6 3.3%
South America 29.8 30.7 31.6 32.5 33.5 34.5 35.5 36.9 2.6%
Total 250.8 256.5 262.4 268.6 275.2 282.1 289.4 299.2 3.2%
2.7%
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
The global market size of small-scale LNG was 256.5 MTPA in 2015 and is projected to reach 299.2 MTPA
by 2021 at a CAGR of 2.7% between 2016 and 2021. The gap between the supply and demand sides can
be met by importing LNG from large-scale liquefaction terminals to the small-scale regasification plants as
these plants can import LNG from both large and small-scale liquefaction terminals. All the regions import
LNG from large-scale regasification terminals to their small-scale regasification terminals to meet the
required demand. This typically serves a wider range of end users such as heavy-duty vehicles, electric
power generation, and marine transport.
The construction of small-scale liquefaction terminals to provide LNG as a transportation fuel has gained
rapid pace in China, the U.S., and other countries globally. LNG is being increasingly utilized in marine
transportation within the Baltic and Scandinavian region, especially in the ECA zones. Charterers and LNG
vessel owners will have to comply with Sulphur Emission Control Area (SECA) regulation to operate LNG
vessels in ECA zones. In regions such as Asia-Pacific and South America, it is economically feasible to build
a small-scale LNG terminal and distribution network to LNG in remote locations than LNG from large scale
terminals.
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9.2 NORTH AMERICA
The utilization of LNG in North America is growing, owing to the supportive environmental policies for
natural gas vehicles and development of LNG fueled engine technology. The small-scale LNG production in
North America is growing, due to the increased availability of gas from shale gas production and the price
differential between LNG and oil-based fuels such as diesel, gasoline, and marine gas oil (MGO). Currently,
LNG from North America is being exported to countries such as Japan, South Korea, Brazil, and Spain. In
the U.S. and Canada, several regasification or import terminals were constructed earlier and were never
brought on-stream. As a result, some of these regasification terminals are being converted into small-scale
liquefaction terminals for LNG export. The growth of the small-scale LNG market in North America is
expected to be facilitated by the opening of a Panama Canal that can lower shipping costs to Asia-Pacific.
The small-scale LNG market in North America accounted for a share of 16.6% of the overall market in
2015. The region, owing to its fast pace of economic development and demand from a wide range of end
users such as heavy-duty transport and electric power generation, is an emerging market in the
consumption of small-scale LNG.
TABLE 11 NORTH AMERICA: SMALL-SCALE LNG LIQUEFACTION TERMINAL CAPACITY (SUPPLY-SIDE),
BY COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
9.3 9.3
U.S. 0.7 0.7 0.7 0.7 0.7 0.7 1.4 1.4
Canada 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Mexico 0.0 0.0 0.0 0.0 0.0 0.0 10.8 10.8
Total 0.7 0.7 0.7 0.7 0.7 0.7
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
TABLE 12 NORTH AMERICA: SMALL-SCALE LNG REGASIFICATION TERMINAL CAPACITY
(SUPPLY-SIDE), BY COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
28.2 28.2
U.S. 28.2 28.2 28.2 28.2 28.2 28.2 0.0 0.0
5.2 5.2
Canada 0.0 0.0 0.0 0.0 0.0 0.0 33.3 33.3
Mexico 5.2 5.2 5.2 5.2 5.2 5.2
Total 33.3 33.3 33.3 33.3 33.3 33.3
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
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TABLE 13 NORTH AMERICA: SMALL-SCALE LNG MARKET SIZE (SUPPLY-SIDE), BY TYPE, 2014–2021
(MTPA)
Type 2014 2015 2016 2017 2018 2019 2020 2021
10.8 10.8
Liquefaction Terminal 0.7 0.7 0.7 0.7 0.7 0.7 33.3 33.3
Regasification Terminal 33.3 33.3 33.3 33.3 33.3 33.3 44.1 44.1
Total 34.1 34.1 34.1 34.1 34.1 34.1
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the supply side, regasification terminal led the North America small-scale LNG market with 97.9%
share of the overall market in 2015. Liquefaction terminal is estimated to be the second-largest segment
accounting for a share of 2.1% of the overall small-scale LNG market in 2015.
TABLE 14 NORTH AMERICA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY COUNTRY,
2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
U.S. 35.5 35.9 36.4 36.9 37.5 38.0 38.6 39.6
Canada 2.0 2.1 2.1 2.1 2.2 2.2 2.3 2.3 1.7%
Mexico 4.5 4.6 4.8 4.9 5.1 5.3 5.4 5.6 2.2%
Total 47.6 3.3%
42.0 42.7 43.3 44.0 44.8 45.5 46.4
1.9%
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand side, the U.S. dominated the North American market for small-scale LNG. In 2015, the
market accounted for a share of 84.3% of the overall market for small-scale LNG. Canada and Mexico
follow the trend with estimated shares of 4.8% and 10.9%, respectively, in 2015.
TABLE 15 NORTH AMERICA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 31.4 31.8 32.2 32.6 33.1 33.6 34.1 35.0 1.7%
Vehicles 5.0 5.1 5.2 5.3 5.4 5.6 5.7
Electric Power 3.1 3.1 3.2 3.2 3.3 3.4 3.4 5.9 2.6%
Generation 2.6 2.7 2.7 2.8 2.9 3.0 3.1
Maritime 3.5 2.1%
Transport
3.2 3.0%
*Others
Total 42.0 42.7 43.3 44.0 44.8 45.5 46.4 47.6 1.9%
Note: *Others include rail transport, space heating, and air conditioning.
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
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From the demand-side, heavy-duty vehicles led the North America small-scale LNG market with a share of
74.5% of the overall market, in 2015. The electric power generation is estimated to be the second-largest
segment (11.9%), followed by marine transport (7.3%), and others accounting for 6.3% of the overall small-
scale LNG market.
9.2.1 U.S.
In the U.S., small-scale LNG projects serving the natural gas trade are executed in compliance with the
safety requirements for terminals and infrastructure regulatory proceedings. These regulatory frameworks
are in accordance with the U.S. federal system that makes clear distinctions of jurisdictional limitations
based on the different markets served. Small-scale LNG projects in the U.S. are under the jurisdiction of
Federal Energy Regulatory Commission (FERC), which involves stakeholders including pipeline gas
consumers and local natural gas distribution companies. Moreover, the small-scale LNG terminals are
administered by the Pipelines and Hazardous Materials Safety Administration (PHMSA) and the U. S.
Department of Transportation. It is further codified under U. S. Title 49, Code of Federal Regulations Part
193.
TABLE 16 U.S.: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 28.5 28.8 29.2 29.6 30.0 30.4 30.9 31.6 1.6%
Vehicles
Electric Power 2.3 2.3 2.3 2.4 2.4 2.5 2.5 2.6 2.0%
Generation
Maritime 2.6 2.6 2.7 2.7 2.8 2.8 2.9 2.9 1.9%
Transport
2.1 2.2 2.2 2.3 2.3 2.4 2.4 2.5 2.4%
*Others
35.5 35.9 36.4 36.9 37.5 38.0 38.6 39.6 1.7%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the small-scale LNG market in the U.S. was estimated to be 35.9 MTPA (2015) and
is projected to reach 39.6 MTPA by 2021, registering a CAGR of 1.7% between 2016 and 2021.
Development of shale gas supply and transition from net importer to net exporter has created huge
opportunities for building the infrastructure for small-scale liquefaction terminals in the country. Excess
LNG supply, lower shipping costs, reaching new users, improving market liquidity, and higher energy
efficiency are some of the key factors that are expected to drive this market in the U.S. Currently, exporters
in other parts of the world are facing increased competition from the U.S. LNG cargoes due to their entry
into international markets. A large number of small-scale LNG development projects are expected to be
commissioned by 2020, with the delivery of LNG cargoes by Cheniere Energy’s Sabine Pass Facility.
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9.2.2 CANADA
Canada, being the fifth largest country in terms of shale gas reserves, is competing with other LNG
exporters to build the necessary infrastructure to export LNG to Asia-Pacific. The country is currently
identifying potential markets for its shale gas reserves for economic benefits by developing the LNG
industry. This has resulted in the minimization of the LNG imports from the U.S. Majority of small-scale LNG
liquefaction projects in Canada are under development and are located in the northwest corner of British
Columbia. These small-scale LNG liquefaction projects are benefitted by both short transit times to Asia-
Pacific as well as surplus shale gas reserves.
TABLE 17 CANADA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 1.62 1.64 1.66 1.69 1.72 1.75 1.78 1.83 2.0%
Vehicles 0.14 0.14 0.14 0.14 0.15 0.15 0.15
Electric Power 0.15 0.15 0.15 0.16 0.16 0.16 0.17 0.16 2.5%
Generation 0.14 0.14 0.15 0.15 0.16 0.17 0.18
Maritime 2.03 2.07 2.10 2.14 2.18 2.23 2.27 0.17 2.4%
Transport
0.19 4.7%
*Others
2.35 2.2%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Canada was estimated to be 2.07 MTPA in
2015 and is projected to reach 2.35 MTPA by 2021, at a CAGR of 2.2% between 2016 and 2021. Canada
is expected to commission three small-scale LNG liquefaction facilities by 2020 producing an aggregate
1.4 MTPA of LNG. Some of the existing small-scale liquefaction terminals in Canada are Altagas, EnCana,
FerusNGF, FortisBC, Gaz Metro, Northeast Midstream, and Union Gas.
9.2.3 MEXICO
Mexico is a net importer of LNG, mostly through pipeline system from the U.S. The demand for LNG in
Mexico is rising, owing to the expanding power generation capacity in the country. The country’s small-scale
LNG consumption is projected to increase from 4.6 MTPA in 2015 to 5.6 MTPA in 2021, expanding at a
CAGR of 3.3% between 2016 and 2021.Moreover, development of Mexico’s shale gas resources is
proceeding at a slow rate. In Mexico, import needs for small-scale LNG are rising due to the stagnant
domestic production and increase in the LNG’s demand in the country. Hence, Mexico is relying on pipeline
imports of LNG from the U.S. and other countries globally.
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TABLE 18 MEXICO: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 1.3 1.3 1.3 1.4 1.4 1.5 1.5 1.6
Vehicles 2.6 2.6 2.7 2.8 2.9 3.0 3.0 3.2 3.1%
Electric Power 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.4
Generation 0.3 0.4 0.4 0.4 0.4 0.4 0.5 0.5 3.2%
Maritime 4.5 4.6 4.8 4.9 5.1 5.3 5.4 5.6
Transport 3.4%
5.4%
*Others 3.3%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the small-scale LNG market in Mexico was estimated to be 4.6 MTPA in 2015 and
is projected to reach 5.6 MTPA by 2021, registering a CAGR of 3.3% between 2016 and 2021. In Mexico,
LNG imports from other countries are expected to decline, owing to the cheaper natural gas from the U.S.
Mexico is investing extensively in power plants to increase its power generation capacity by using natural
gas as the main fuel source.
9.3 EUROPE
In Europe, stringent regulations on the marine transport are stimulating the utilization of small-scale LNG
as a bunker fuel in the region, especially in Baltic, Scandinavia, and North Western Europe. Various
European countries such as Norway, Poland, Portugal, and Spain have proposed building small-scale
regasification terminals, sustained by the EU subsidies that are expected to be as large as 10 to 20% of
the total development cost of the regasification terminal.
According to the European Commission, some of the major barriers to the introduction of alternative fuels
such as natural gas are a lack of technical specifications and adequate infrastructure for small-scale LNG
terminal. Currently, Europe is promoting the use of small-scale LNG as the cleanest hydrocarbon fuel. The
European Union (EU) is expected to install 130 ports such as maritime ports, LNG refueling points, and
inland waterway ports by the end of 2021. Besides infrastructural developments, the EU also focusses on
the implementation of technical specifications, for instance, installation of LNG refueling points for
waterborne vessels, in compliance with ISO TC67/WG10 standards.
TABLE 19 EUROPE: SMALL-SCALE LNG MARKET SIZE IN LIQUEFACTION TERMINAL (SUPPLY-SIDE),
BY COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
1.7 1.7
Norway 1.7 1.7 1.7 1.7 1.7 1.7 3.7 3.7
5.4 5.4
Russia 3.7 3.7 3.7 3.7 3.7 3.7
Total 5.4 5.4 5.4 5.4 5.4 5.4
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
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TABLE 20 EUROPE: SMALL-SCALE LNG MARKET SIZE IN REGASIFICATION TERMINAL (SUPPLY-SIDE),
BY COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
0.5 0.5
Sweden 0.4 0.5 0.5 0.5 0.5 0.5 15.2 15.2
4.5 4.5
UK 13.3 13.9 13.9 13.9 13.9 13.9 8.0 8.0
15.3 15.3
Greece 3.3 3.3 3.3 3.3 3.3 3.3 1.9 1.9
5.6 5.6
France 6.4 7.0 7.0 7.0 7.0 7.0 2.2 2.2
7.4 7.4
Spain 15.2 15.5 15.3 15.3 15.3 15.3 3.3 3.3
2.3 2.3
Belgium 1.9 1.9 1.9 1.9 1.9 1.9 66.0 66.0
Italy 3.7 3.6 3.8 3.8 3.8 3.8
Netherlands 2.2 2.2 2.2 2.2 2.2 2.2
Portugal 4.9 3.7 3.7 3.7 3.7 3.7
Turkey 3.3 3.3 3.3 3.3 3.3 3.3
Poland 0.0 1.5 1.5 1.5 1.5 1.5
Total 54.7 56.5 56.5 56.5 56.5 56.5
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
TABLE 21 EUROPE: SMALL-SCALE LNG MARKET SIZE (SUPPLY-SIDE), BY TYPE, 2014–2021 (MTPA)
Type 2014 2015 2016 2017 2018 2019 2020 2021
5.4 5.4
Liquefaction Terminal 5.4 5.4 5.4 5.4 5.4 5.4 66.0 66.0
71.4 71.4
Regasification 54.7 56.5 56.5 56.5 56.5 56.5
Terminal
Total 60.1 61.9 61.9 61.9 61.9 61.9
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the supply side, regasification terminal led the Europe small-scale LNG market with a share of 91.3%
of the overall market in 2015. Liquefaction terminal is estimated to be the second-largest segment
accounting for a share of 8.7% of the overall small-scale LNG market in the same year.
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TABLE 22 EUROPE: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY COUNTRY,
2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
UK 14.8 15.0 15.3 15.5 15.7 16.0 16.3 16.7 1.8%
France 7.2 7.3 7.5 7.6 7.8 8.0 8.2
Spain 8.4 2.5%
Portugal 16.9 17.1 17.3 17.5 17.7 18.0 18.3
Norway 5.4 5.5 5.7 5.8 5.9 6.1 6.2 18.7 1.6%
Italy 3.7 3.8 3.8 3.9 4.0 4.1 4.2
*Rest of Europe 4.1 4.2 4.3 4.4 4.6 4.7 4.8 6.4 2.6%
Total 8.8 9.0 9.1 9.3 9.4 9.6 9.8
60.8 61.9 62.9 64.0 65.2 66.5 67.8 4.4 2.7%
5.0 3.1%
10.1 2.1%
69.7 2.1%
*Rest of Europe includes Sweden, Greece, Belgium, Netherlands, Turkey, Poland, and Russia
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Europe was 61.9 MTPA in 2015. The market
in the region is projected to register a CAGR of 2.1% from 2016 to reach 69.7 by 2021. Spain was the
largest market in the region with a share of 27.6% of the regional market in 2015.
The major driving factors for the small-scale LNG market in Europe are increasingly stringent regulations
about energy efficiency and increasing number of end users in the region. Owing to these factors, the
demand for small-scale LNG in various end users has increased over the past few years, and the same
factors are also expected to drive the market during the forecast period.
TABLE 23 EUROPE: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 22.2 22.5 22.8 23.2 23.5 23.9 24.3 24.9 1.8%
Vehicles 2.9 3.0 3.1 3.2 3.3 3.4 3.5
Electric Power 3.6 3.1%
Generation 29.9 30.3 30.8 31.2 31.7 32.3 32.8
Maritime 5.8 6.0 6.2 6.5 6.7 6.9 7.2 33.7 1.8%
Transport
60.8 61.9 62.9 64.0 65.2 66.5 67.8 7.5 3.8%
*Others 69.7 2.1%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, maritime transport led the small-scale LNG market in Europe with a share of 49%
of the overall market in 2015. Heavy-duty vehicles is estimated to be the second-largest segment (36.4%),
followed by electric power generation (4.9%), and other end users accounting for the remaining 9.8% of the
overall market.
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9.3.1 U.K.
The LNG import occurred for the first time in the U.K. in Canvey Island, equipped with six tanks of 4,000
ton installed capacity each in 1964. In the past few years, the U.K. has become a net importer of natural
gas, owing to the decline of North Sea gas reserves and rapid increase in the gas demand in the country.
The government in the U.K. has been boosting the development of regasification infrastructures such as
pipeline systems and small-scale LNG facilities. National Grid commissioned a road tanker loading facility
in 2015 at Grain LNG regasification terminal and is also one of the quickest projects to come on-stream.
The U.K. has developed standards for CNG filling stations, which are maintained by the Institutions of Gas
Engineers and Managers (IGEM) and those for LNG filling stations set by the British Compressed Gases
Association (BCGA).
TABLE 24 U.K.: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 5.8 5.9 6.0 6.0 6.1 6.2 6.2 6.4 1.3%
Vehicles 0.3 0.3 0.3 0.3 0.4 0.4 0.4
Electric Power 7.6 7.6 7.7 7.8 8.0 8.1 8.2 0.4 3.9%
Generation 1.1 1.2 1.2 1.3 1.3 1.4 1.4
Maritime 14.8 15.0 15.3 15.5 15.7 16.0 16.3 8.4 1.6%
Transport
1.5 4.2%
*Others
16.7 1.8%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand side, the market size of small-scale LNG in the U.K. was 15.0 MTPA in 2015 and is
projected to reach 16.7 MTPA by 2021, registering a CAGR of 1.8% between 2016 and 2021.
In the U.K., the major focus is on natural gas powered heavy duty vehicles, including LNG and CNG. The
availability of LNG from Avonmouth peak shaving site has formed the basis for the number of small-scale
LNG projects in the country. Funding the small-scale LNG projects in the country has been provided by the
Low Carbon Vehicles Innovation Platform as a part of low carbon truck demonstration trail.
9.3.2 FRANCE
France is one of the first countries to operate LNG terminal globally since 1964. In 2004, the total import
of LNG in France was about 7.7 bcm, representing 17% of the total LNG consumption in France. The
country’s domestic production represents only 1% of the total consumption. The consumption of natural
gas in France is lower compared to other European countries, due to the extensive use of nuclear energy
for power generation. Historically, LNG terminal infrastructure in France has been limited to large-scale
regasification terminals. France’s scope and design for small-scale LNG terminals are in compliance with
ISO and EN standards. Existing regulations for the LNG storage capacity in the country are under the
supervision of Seveso Directive. Small-scale LNG terminals in France are registered as Installation
Classified for Environmental Protection (ICEP) mandated by the code of environment.
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TABLE 25 FRANCE: SMALL-SCALE LNG MARKET SIZE (DEMAND–SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 2.8 2.8 2.9 2.9 3.0 3.0 3.1 3.2 2.3%
Vehicles 0.2 0.2 0.2 0.2 0.2 0.3 0.3
Electric Power 3.7 3.7 3.8 3.9 4.0 4.0 4.1 0.3 3.8%
Generation 0.5 0.5 0.6 0.6 0.6 0.7 0.7
Maritime 7.2 7.3 7.5 7.6 7.8 8.0 8.2 4.2 2.2%
Transport
0.7 4.5%
*Others
8.4 2.5%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in France was 7.3 MTPA in 2015 and is
projected to reach 8.4 MTPA by 2021, registering a CAGR of 2.5% between 2016 and 2021.
Engie, a French LNG terminal company, owns two small-scale LNG import terminals, Montoir de Bretagne
near Nantes and Fos-sur-Mer near Marseilles, which are currently operational in France. In France, new
guidelines are under elaboration to optimize the number of end users of small-scale LNG. For marine
transport, policy in France is derived from the European policies.
9.3.3 SPAIN
Spain has limited natural gas reserves and imports majority of the natural gas from other countries such as
Algeria, Nigeria, and Qatar. LNG consumption in Spain, one of the highest in Europe, is expected to grow
significantly in the coming years. This growth can be attributed to the increasing demand of electricity and
replacement of conventional nuclear and coal-fired power plants by natural gas fueled power plants. In
1998, Hydrocarbon Act employed the third party access regime to LNG infrastructure in compliance with
Directive 2003/55/EC. According to this act, Spain can import less than 60% of the total natural gas
demand from a single country. The main objective of this act is to reduce to the dominant position of
Algerian LNG imports. Currently, there are more than 30 companies licensed to market LNG in Spain.
Spain has been a pioneer and a leader in the development of small-scale LNG activities. Additionally, the
country is adopting tariffs and regulations to provide innovative logistics services for the development of
LNG as a fuel.
TABLE 26 SPAIN: SMALL-SCALE LNG MARKET SIZE (DEMNAD-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 6.0 6.1 6.1 6.2 6.2 6.3 6.4 6.5
Vehicles 1.1 1.1 1.1 1.1 1.1 1.2 1.2 1.2 1.3%
Electric Power 7.8 7.9 8.0 8.1 8.2 8.2 8.4 8.5
Generation 2.0 2.0 2.1 2.1 2.2 2.3 2.3 2.4 2.1%
Maritime 16.9 17.1 17.3 17.5 17.7 18.0 18.3 18.7
Transport 1.3%
3.0%
*Others 1.6%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
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From the demand-side, the market size of small-scale LNG in Spain was 17.1 MTPA in 2015 and is
projected to reach 18.7 MTPA by 2021, registering a CAGR of 1.6% between 2016 and 2021.
In 1970, Spain started the promotion of small-scale LNG activities through trucking regulations. Spain is
one of the global leaders of LNG truck loading with around 40,000 LNG trucks reloaded per annum, which
is equivalent to 13 LNG vessels. Initiatives such as Ports of the State Bunkering Development, Iberian
Association for Natural Gas as a Fuel (Gasnam), and Sectorial Iberian Association, have been launched to
develop LNG use in automotive and maritime industries.
9.3.4 PORTUGAL
There are no liquefaction terminals, both large and small-scale, in Portugal. The LNG utilized in Portugal is
imported from Algeria through Sines LNG terminal and pipeline that transit through Spain. Additionally,
some of the LNG is shipped from Nigeria. According to the European Commission, Portugal is an emerging
market and is free from third-party access obligations of the second gas directive. The Sines LNG
regasification terminal initiated its operations in 2003 and had a significant impact on the local
consumption of natural gas in the country. The Sines LNG regasification terminal is operated by Galp
Atlantico, a wholly owned subsidiary of Galp Energia (Portugal).
TABLE 27 PORTUGAL: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 1.2 1.3 1.3 1.3 1.3 1.4 1.4 1.4 2.2%
Vehicles 0.9 0.9 0.9 0.9 1.0 1.0 1.0
Electric Power 2.6 2.6 2.7 2.7 2.8 2.9 2.9 1.1 3.5%
Generation 0.7 0.8 0.8 0.8 0.8 0.9 0.9
Maritime 3.0 2.3%
Transport
0.9 3.3%
*Others
Total 5.4 5.5 5.7 5.8 5.9 6.1 6.2 6.4 2.6%
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Portugal was 5.5 MTPA in 2015 and is
projected to reach 6.4 MTPA by 2021, registering a CAGR of 2.6% between 2016 and 2021. Power
generation is the fastest-growing sector in Portugal, and the country is making significant efforts to
deregulate its power generation sector.
9.3.5 NORWAY
Currently, Norway is one of the largest producers and exporters of LNG in Europe. In spite of being an LNG
producer, many locations in Norway are not connected to the main grid. Many small-scale LNG
regasification terminals (also known as satellite terminals) are available to supply natural gas to local
distribution networks and supply industries. One large-scale LNG terminal is located on the north coast
(Snohvit) and five mini and small-scale LNG terminals along the west coast. The EN-1473 and the NORSOK
standards are used for both large and small-scale LNG liquefaction terminals, while TS/EN 13645
standards are used for regasification terminals. Currently, there are approximately more than 50 ships
sailing on LNG in Norway and is expected to grow to more than 80 ships in the coming years.
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TABLE 28 NORWAY: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 1.4 1.5 1.5 1.5 1.5 1.6 1.6 1.7 2.4%
Vehicles 0.1 0.1 0.1 0.1 0.1 0.2 0.2
Electric Power 1.8 1.9 1.9 1.9 2.0 2.0 2.1 0.2 3.9%
Generation 0.3 0.3 0.3 0.3 0.4 0.4 0.4
Maritime 3.7 3.8 3.8 3.9 4.0 4.1 4.2 2.1 2.3%
Transport
0.4 5.4%
*Others
4.4 2.7%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Norway was 3.8 MTPA in 2015 and is
projected to reach 4.4 MTPA by 2021, registering a CAGR of 2.7% between 2016 and 2021. The use of
LNG as a bunkering fuel in Norway is stimulated by the Environmental NOx agreement (2008–2017). The
agreement is between the Ministry of Environment and 15 business organizations in Norway, which was
permitted by the EFTA Surveillance Authority (ESA) in 2008.
9.3.6 ITALY
Italy imports majority of the natural gas from Russia and Algeria through a pipeline or in the form of LNG. It
also imports natural gas by pipeline systems from Norway and the Netherlands and by LNG shipments
through Nigeria. The government of Italy is facilitating the development of LNG regasification facilities and
gas trade. Currently, the majority of the LNG deliveries are made through single LNG regasification terminal
located in Panigaglia. The amount of LNG imported in Italy accounts for less than 10% of the total natural
gas imported into the country.
TABLE 29 ITALY: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 1.6 1.7 1.7 1.8 1.8 1.9 1.9 2.0 3.0%
Vehicles 0.0 0.1 0.1 0.1 0.1 0.1 0.1
Electric Power 2.0 2.1 2.2 2.2 2.3 2.3 2.4 0.1 4.3%
Generation 0.3 0.4 0.4 0.4 0.4 0.4 0.4
Maritime 4.1 4.2 4.3 4.4 4.6 4.7 4.8 2.5 2.9%
Transport
0.5 4.5%
*Others
5.0 3.1%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Italy was 4.2 MTPA in 2015 and is projected
to reach 5.0 MTPA by 2021, registering a CAGR of 3.1% between 2016 and 2021.
In Italy, the Ministry for the Economic Development is responsible for formulating the specific regulatory
framework for the development of small-scale LNG distribution infrastructure network. A national order was
approved in 2014 to set a 0.1% SOx limit for navigation in the Italian waters of the Ionian and Adriatic
seas, which would enable from 2018. This is one of the major opportunities to support the small-scale LNG
development.
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9.3.7 REST OF EUROPE
Other European countries include Sweden, Greece, Belgium, Netherlands, Turkey, Poland, and Russia.
These countries shared 14.5% of total European small-scale LNG market in 2015.
TABLE 30 REST OF EUROPE: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End-Use 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 3.3 3.4 3.4 3.5 3.5 3.6 3.6 3.7 1.8%
Vehicles 0.3 0.3 0.3 0.3 0.4 0.4 0.4
Electric Power 4.3 4.4 4.5 4.5 4.6 4.7 4.8 0.4 3.2%
Generation 0.8 0.9 0.9 0.9 1.0 1.0 1.0
Maritime 4.9 1.8%
Transport
1.1 3.8%
*Others
Total 8.8 9.0 9.1 9.3 9.4 9.6 9.8 10.1 2.1%
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in rest of Europe was 9.0 MTPA in 2015 and is
projected to reach 10.1 MTPA by 2021, registering a CAGR of 2.1% between 2016 and 2021.
9.4 ASIA-PACIFIC
Countries such as Japan, South Korea, Taiwan, India, and China are regarded as the high LNG importing
markets that are willing to sign long-term contracts with exporting countries on price terms. Oil indexation
dominates the prices of LNG in Asia-Pacific with Japanese Crude Cocktail (JCC), an index used in the
medium- and long-term contracts. Spot LNG prices in Asia-Pacific are likely to come under pressure, as
LNG supply increases and demand in the key markets such as South Korea and Japan are likely to weaken
in the coming years. The growth of the small-scale LNG market in Asia-Pacific is mainly due to the
increasing demand for small-scale LNG in India, and South East Asia, offsetting the weaker demand in
South Korea and Japan. Natural gas producers are considering Asia-Pacific as the fastest-growing market,
owing to uncertain demand prospects in Europe and North America becoming an LNG importer. Asia-
Pacific’s LNG demand depends on the available LNG supplies, competitiveness of LNG against other
sources of energy including coal in electricity generation, and LNG trade price.
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FIGURE 21 ASIA-PACIFIC MARKET SNAPSHOT: CHINA IS THE FASTEST-GROWING SMALL-
SCALE LNG MARKET
ASIA-PACIFIC
accounted for a share of The market in China is ASIA-PACIFIC: SMALL-SCALE LNG
33.6% of the global small- projected to register the MARKET SIZE, BY COUNTRY (DEMAND-SIDE),
scale LNG market, in terms of highest CAGR, in terms of
2015 (MTPA)
volume volume
42.6
Japan occupies the second- Japan commands
largest share in the Asia ~49.4% of the Asia-Pacific 21.5
Pacific small-scale LNG market, in terms of volume
market 8.8 5.9 3.1 1.3 3.1
ASIA-PACIFIC: SMALL-SCALE LNG MARKET, 2015, China
BY COUNTRY – DEMAND-SIDE (MTPA) Japan
India
COUNTRY MARKET SIZE (2015) CAGR South Korea
China 8.8 (2016-2021) Taiwan
Japan 42.6 Singapore
5.0% Rest of Asia Pacific
2.8% ASIA-PACIFIC: SMALL-SCALE LNG MARKET
SIZE, BY END USER (DEMAND-SIDE),
2015 (MTPA)
India 5.9 4.3%
South Korea 21.5 2.6% HEAVY-DUTY ELECTRIC POWER
Taiwan 3.1 4.5% VEHICLES GENERATION
Singapore 1.3 4.8% 67.3 MTPA 7.6 MTPA
Rest of Asia Pacific 3.1 4.7%
MARINE TRANSPORT OTHERS
4.9 MTPA 6.5 MTPA
Note 1: Rest of Asia-Pacific includes Thailand, Malaysia, and Indonesia.
Note 2: The CAGR is in terms of volume.
Source: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis
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TABLE 31 ASIA-PACIFIC: SMALL-SCALE LNG LIQUEFACTION TERMINAL CAPACITY (SUPPLY-SIDE),
BY COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
6.7 6.7
Indonesia 6.1 5.8 6.3 6.3 6.3 6.3 16.3 16.3
5.2 5.2
Australia 4.2 7.0 7.3 7.0 7.0 7.0 1.3 1.3
29.5 29.5
Malaysia 4.2 4.2 4.3 4.2 4.2 4.2
Brunei 1.2 1.3 0.9 1.3 1.3 1.3
Total 15.8 18.2 18.8 18.8 18.8 18.8
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
TABLE 32 ASIA-PACIFIC: SMALL-SCALE LNG REGASIFICATION TERMINAL CAPACITY (SUPPLY-SIDE),
BY COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
6.2 9.0 9.0 9.0 9.0 9.0 11.3 11.3
China 30.9 31.7 31.7 31.7 31.7 31.7 31.8 31.8
Japan 0.7 1.2 1.2 1.2 1.2 1.2 1.2 1.2
Indonesia 4.2 5.4 5.4 5.4 5.4 5.4 8.9 8.9
India 2.2 2.2 2.2 2.2 2.2 2.2 2.6 2.6
Taiwan 15.6 16.3 16.3 16.3 16.3 16.3 17.1 17.1
South 0.7 0.7 0.7 0.7 0.7 0.7 1.4 1.4
Korea 1.0 1.0 1.0 1.0 1.0 1.0 3.0 3.0
Malaysia 0.8 0.8 0.8 0.8 0.8 0.8 1.7 1.7
Singapore 62.3 68.4 68.4 68.4 68.4 68.4 79.1 79.1
Thailand
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
TABLE 33 ASIA-PACIFIC: SMALL-SCALE LNG MARKET SIZE (SUPPLY-SIDE), BY TYPE,
2014–2021 (MTPA)
Type 2014 2015 2016 2017 2018 2019 2020 2021
Liquefaction Terminal 15.8 18.2 18.8 18.8 18.8 18.8 29.5 29.5
Regasification Terminal 62.3 68.4 68.4 68.4 68.4 68.4 79.1 79.1
Total 78.1 86.7 87.3 87.2 87.2 87.2 108.6 108.6
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the supply side, regasification terminal led the Asia-Pacific small-scale LNG market with a share of
78.9% of the overall market in 2015. Liquefaction terminal is estimated to be the second-largest segment
accounting for the remaining 21.1% of the overall small-scale LNG market in 2015.
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TABLE 34 ASIA-PACIFIC: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY COUNTRY,
2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
China 8.4 8.8 9.2 9.6 10.1 10.5 11.1 11.7
41.6 42.6 43.7 44.8 46.0 47.2 48.5 50.2 5.0%
Japan 5.7 5.9 6.2 6.4 6.7 7.0 7.3 2.8%
21.0 21.5 22.0 22.5 23.0 23.6 24.2 7.6 4.3%
India 3.0 3.1 3.2 3.3 3.5 3.6 3.8 25.0 2.6%
1.3 1.3 1.4 1.5 1.5 1.6 1.7 4.5%
South Korea 2.9 3.1 3.2 3.4 3.6 3.8 3.9 4.0 4.8%
83.9 86.3 88.8 91.5 94.3 97.3 100.4 1.8 4.7%
Taiwan 4.1
104.4 3.3%
Singapore
*Rest of Asia-
Pacific
Total
Note: *Rest of Asia-Pacific includes Thailand, Malaysia, and Indonesia
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Asia-Pacific region was 86.3 MTPA in 2015.
The market in this region is projected to register a CAGR of 3.3% from 2016 to reach 104.4 MTPA by 2021.
Japan was the largest market in the region with a share of 49.4% of the region’s small-scale LNG market in
2015.
TABLE 35 ASIA-PACIFIC: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 65.6 67.3 69.1 71.0 73.0 75.1 77.3 80.2 3.0%
Vehicles 7.3 7.6 7.9 8.2 8.5 8.8 9.1
Electric Power 4.7 4.9 5.1 5.4 5.6 5.9 6.1 9.6 4.0%
Generation 6.2 6.5 6.7 7.0 7.2 7.5 7.8
Maritime 6.5 4.7%
Transport
8.2 4.0%
*Others
Total 83.9 86.3 88.8 91.5 94.3 97.3 100.4 104.4 3.3%
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, heavy-duty vehicles led the Asia-Pacific small-scale LNG market with a share of
78.0% of the overall market in 2015. Electric power generation is estimated to be the second-largest
segment (8.8%), followed by marine transport (5.7%), and other end users accounting for the remaining
7.5% of the overall market in 2015.
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9.4.1 CHINA
China is currently the fastest growing small-scale LNG market globally. During the last decade, the growth
of small-scale LNG market in China has been enormous due to the availability of domestic natural gas, a
mandate from central and local governments to acquire cleaner fuel to curb air pollution in the cities. The
majority of the small-scale LNG regasification plants in China are in western and northern provinces mainly
for end users such as heavy-duty transport. In China, the price differential between diesel and LNG is one
of the primary drivers for the increasing demand of LNG as a truck fuel. In 2009, LNG-fueled heavy-duty
transport market started growing with techno-commercial development. Presently, the number of heavy-
duty vehicles in China using LNG as a fuel is approaching 200,000.
TABLE 36 CHINA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 6.7 7.0 7.3 7.7 8.0 8.4 8.8 9.2 4.8%
Vehicles 0.6 0.6 0.7 0.7 0.7 0.8 0.8
Electric Power 0.5 0.5 0.5 0.6 0.6 0.6 0.7 0.9 5.6%
Generation 0.6 0.6 0.7 0.7 0.7 0.8 0.8
Maritime 8.4 8.8 9.2 9.6 10.1 10.5 11.1 0.7 6.3%
Transport
0.9 6.1%
*Others
11.7 5.0%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in China was 8.8 MTPA in 2015 and is
projected to reach 11.7 MTPA by 2021, registering a CAGR of 5.0% between 2016 and 2021.
The government of China is focusing on utilizing LNG as a marine fuel facilitated by the opening of the first
LNG marine bunker fuel station in the country. In China, the natural gas is supplied predominantly from
pipelines delivering domestically imported natural gas. The small-scale LNG market in China is aided by low
domestic natural gas prices, which are regulated by the state-run National Development and Reform
Commission (NDRC).
9.4.2 JAPAN
Japan is one of the first countries to initiate distribution of LNG via heavy-duty trucks. In 1970, Tokyo Gas
Co., Ltd. started LNG truck transportation to a small-scale regasification terminal, also known as satellite
terminals. Existing developed highway system and high construction costs of pipelines enabled the
development of the small-scale LNG industry in this country. In Japan, there are currently 30 LNG receiving
terminals in operation. Likewise, it is expanding LNG distribution routes through railways and small ships.
LNG regasification terminals here are regulated by the Gas Business Act, High-Pressure Gas Safety Act,
and Electricity Business Act. Additionally, the sales and distribution of LNG through pipelines are regulated
by the Gas Business Act in Japan. High-Pressure Gas Safety Act regulates the natural gas production,
storage, disposal, import, and consumption of high-pressure natural gas. Ship Safety Act regulates the LNG
distribution through ships.
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TABLE 37 JAPAN: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 32.8 33.5 34.2 34.9 35.7 36.6 37.5 38.7 2.5%
Vehicles 3.5 3.6 3.8 3.9 4.0 4.2 4.3
Electric Power 2.4 2.5 2.6 2.7 2.8 2.9 3.1 4.5 3.5%
Generation 2.9 3.0 3.1 3.3 3.4 3.5 3.7
Maritime 41.6 42.6 43.7 44.8 46.0 47.2 48.5 3.2 4.6%
Transport
3.8 4.2%
*Others
50.2 2.8%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Japan was 42.6 MTPA in 2015 and is
projected to reach 50.2 MTPA by 2021, registering a CAGR of 2.8% between 2016 and 2021.
9.4.3 INDIA
In India, ongoing development of natural gas pipeline infrastructure and LNG regasification terminals are
strengthening the development of the small-scale LNG market. However, the growing demand of small-
scale LNG is constrained by a major challenge in terms of LNG price acceptability in various sectors such
as heavy-duty vehicles, marine transport, and power generation. India is emerging as one of the major
small-scale LNG markets to accomplish the desired sustainable growth of its economy. In India,
manufacture, sale, import, export, consumption, and all activities related to LNG are regulated by
Petroleum Act 1934, Explosives Act 1884, and Inflammable Substances Act 1952.
The Petroleum & Explosives Safety Organization (PESO) operating under the Ministry of Commerce &
Industry, is an Indian statutory authority that is accountable for the management of all these acts. PESO is
responsible for formulating national rules regarding public safety in association with the Oil Industry &
Safety Directorate (OISD). Standards including NFPA59A and OISD-194 are being followed for the
implementation of small-scale LNG terminals in India. Furthermore, Static & Mobile Pressure Vessel
(SMPV) rules are followed here for utilizing pressure vessels in small-scale LNG regasification terminals
and for the movement of LNG road tanker.
TABLE 38 INDIA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 4.3 4.5 4.7 4.8 5.0 5.2 5.4 5.7 4.1%
Vehicles 0.6 0.6 0.7 0.7 0.7 0.7 0.8
Electric Power 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.8 4.8%
Generation 0.5 0.5 0.5 0.6 0.6 0.6 0.6
Maritime 5.7 5.9 6.2 6.4 6.7 7.0 7.3 0.4 5.9%
Transport
0.7 4.0%
*Others
7.6 4.3%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in India was 5.9 MTPA in 2015 and is projected
to reach 7.6 MTPA by 2021, registering a CAGR of 4.3% between 2016 and 2021.
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9.4.4 SOUTH KOREA
South Korea has no natural gas pipelines and relies completely on LNG tanker shipments. Currently, South
Korea is the second largest importer of LNG, after Japan. The Korea Gas Corporation (KOGAS) dominates
the wholesale natural gas sector in the country and is one of the largest LNG importers, globally. KOGAS
has a huge monopoly over the import, purchase, and natural gas distribution across the country.
Approximately, two-thirds of the South Korea’s LNG imports comes from countries such as Indonesia,
Qatar, Oman, and Malaysia.
Additionally, South Korea is expected to diversify its LNG sources and exploit new natural gas exporting
opportunities in countries such as the U.S., Australia, Nigeria, and Egypt. Baseload power generation
requirements in South Korea mainly comes from nuclear power and coal, whereas the peak demand is
generally met by the country’s natural gas imports. Furthermore, South Korea is one of the leading builders
of LNG ships globally, led by Samsung Heavy Industries, Hyundai Heavy Industries Co., and Daewoo
Shipbuilding & Marine Engineering Co.
TABLE 39 SOUTH KOREA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 16.2 16.5 16.8 17.2 17.6 18.0 18.4 19.0 2.4%
Vehicles 1.9 2.0 2.0 2.1 2.1 2.2 2.3
Electric Power 1.2 1.2 1.3 1.3 1.4 1.4 1.5 2.4 3.5%
Generation 1.8 1.8 1.8 1.9 1.9 2.0 2.1
Maritime 21.0 21.5 22.0 22.5 23.0 23.6 24.2 1.5 3.6%
Transport
2.1 2.8%
*Others
25.0 2.6%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in South Korea was 21.5 MTPA in 2015 and is
projected to reach 25.0 MTPA by 2021, registering a CAGR of 2.6% between 2016 and 2021.
9.4.5 TAIWAN
The government in Taiwan and the private sector together have continuously boosted industrial
competitiveness and achieved steady economic growth in the country. LNG exports have provided the
impetus for the economic development in the country. However, its heavy dependency on exports exposed
the economy to fluctuation in the global demand. Since 2009, Taiwan has loosened rules governing
Chinese investment and provided greater market access for investors to invest in Taiwan. The energy mix
in Taiwan is heavily dominated by coal and oil. Natural gas constituted a share of 13.8% of the energy mix
in 2015. The growth of LNG in the power generation sector can be directly attributed to the low CO2
emission profile.
Earlier, Taiwan’s major small-scale LNG suppliers have been Malaysia and Indonesia. By 2010, the LNG
supply portfolio in Taiwan has become diversified with the addition of Nigeria, Qatar, Australia, and Oman.
In 2015, Qatar contributed 45% of the total small-scale LNG imports in Taiwan. The small-scale LNG
demand in coming years depends on the relative shares of coal and natural gas in power generation,
demand from heavy-duty vehicles replacing diesel as a fuel, and policies and regulation to favor small-
scale LNG over diesel and coal.
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TABLE 40 TAIWAN: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.1 4.3%
Vehicles 0.3 0.3 0.3 0.4 0.4 0.4 0.4
Electric Power 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.4 5.2%
Generation 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Maritime 3.0 3.1 3.2 3.3 3.5 3.6 3.8 0.2 5.7%
Transport
0.2 4.9%
*Others
4.0 4.5%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the small-scale LNG market in Taiwan was estimated to be 3.1 MTPA in 2015 and
is projected to reach 4.0 MTPA by 2021, registering a CAGR of 4.5% between 2016 and 2021.
9.4.6 SINGAPORE
Currently, Singapore has a 1 MTPA small-scale LNG liquefaction terminal capacity, and there are plans to
expand capacity to 3 MTPA between 2016 and 2021. The growth of LNG bunkering taking off in Singapore
depends upon the regulations in short to medium term. Presently, LNG is moderately consumed compared
to heavy fuel oil (HFO) due to the low price of the crude oil barrel, optimized small-scale LNG distribution,
and lack of adequate small-scale LNG infrastructure. Requirements of deep sea shipping to reduce COx,
NO2, and SO2 emissions by 2020 are expected to give an impulse for the use of LNG in Singapore.
Singapore is currently able to accommodate LNG vessels from 60,000 cubic meters to 260,000 cubic
meters.
In terms of economics, small-scale LNG is expected to be costly on a per million British Thermal Units
(MMBtu) basis due to the operational challenges in the small-scale plant compared to a large-scale plant in
the country. Additionally, population and economic growth can help to fuel the LNG demand in Singapore. A
global concern toward utilizing cleaner energy sources utilization is expected to augment the demand for
LNG that emits half the level of CO2 than coal and 20% less than HFO. Furthermore, small-scale LNG
facilities can meet the demand for LNG in geographical locations such as archipelago states and islands in
Singapore.
TABLE 41 SINGAPORE: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 1.0 1.0 1.1 1.1 1.2 1.2 1.3 1.4 4.5%
Vehicles 0.1 0.1 0.1 0.1 0.2 0.2 0.2
Electric Power 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 5.4%
Generation 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Maritime 1.3 1.3 1.4 1.5 1.5 1.6 1.7 0.1 6.1%
Transport
0.1 5.0%
*Others
1.8 4.8%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Singapore was 1.3 MTPA in 2015 and is
projected to reach 1.8 MTPA by 2021, registering a CAGR of 4.8% between 2016 and 2021.
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9.4.7 REST OF ASIA-PACIFIC
The Rest of Asia-Pacific includes countries such as Thailand, Malaysia, and Indonesia that are gradually
developing as key markets for small-scale LNG.
TABLE 42 REST OF ASIA-PACIFIC: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 2.3 2.4 2.5 2.6 2.8 2.9 3.0 3.1 4.5%
Vehicles 0.3 0.3 0.3 0.3 0.3 0.4 0.4
Electric Power 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.4 5.4%
Generation 0.2 0.2 0.2 0.3 0.3 0.3 0.3
Maritime 0.2 6.1%
Transport
0.3 5.2%
*Others
Total 2.9 3.1 3.2 3.4 3.6 3.8 3.9 4.1 4.7%
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in rest of Asia-Pacific was 3.1 MTPA in 2015
and is projected to reach 4.1 MTPA by 2021, registering a CAGR of 4.7% between 2016 and 2021.
9.5 MIDDLE EAST & AFRICA (MEA)
The Middle East & Africa (MEA) is one of the most important markets for small-scale LNG and accounted
for a share of 13.6% of the global market in 2015. The key countries in the MEA small-scale LNG market
are UAE, Israel, and Kuwait. MEA is usually considered as the large-scale and small-scale exporter of LNG,
globally. However, MEA has grown into a recognized demand center for LNG over the past few years, owing
to the increasing imports from traditional buyers and new market entrants. Countries such as the UAE,
Israel, and Kuwait altogether received a gas equivalent of 6.1 billion cubic meters in 2014. These
countries face gas shortages and have to import LNG or pipeline natural gas to meet the rapidly growing
LNG demand. As of now, Qatar is the only country able to meet the growing demand. LNG imports into the
MEA region reached 24.5 billion cubic meters in 2016, due to the emergence of new importers such as
Egypt and Jordan. Furthermore, Africa’s LNG demand is largely dominated by Egypt and Algeria.
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TABLE 43 MEA: SMALL-SCALE LNG LIQUEFACTION TERMINAL CAPACITY (SUPPLY-SIDE),
BY COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
Qatar 15.1 15.1 15.1 15.1 15.1 15.1 16.7 16.9
Egypt 2.4 2.4 2.4 2.4 2.4 2.4 2.9 2.9
Nigeria 4.3 4.3 4.3 4.3 4.3 4.3 4.3 4.4
Oman 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1
Angola 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Guinea 0.9 2.1 2.1 2.1 2.1 2.1 2.8 2.8
Libya 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7
UAE 1.1 1.1 1.1 1.1 1.1 1.1 1.3 1.3
Yemen 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3
Algeria 3.3 3.1 3.1 3.1 3.1 3.1 3.3 3.3
Total 32.3 33.2 33.2 33.2 33.2 33.2 36.3 36.8
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
TABLE 44 MEA: SMALL-SCALE LNG REGASIFICATION TERMINAL CAPACITY (SUPPLY-SIDE), BY
COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
UAE 0.6 0.6 0.6 0.6 0.6 0.6 1.5 1.5
Israel 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Kuwait 0.7 0.7 0.7 0.7 0.7 0.7 2.2 2.2
Total 1.7 1.7 1.7 1.7 1.7 1.7 4.0 4.0
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
TABLE 45 MEA: SMALL-SCALE LNG MARKET SIZE (SUPPLY-SIDE), BY TYPE, 2014–2021 (MTPA)
Type 2014 2015 2016 2017 2018 2019 2020 2021
36.3 36.8
Liquefaction Capacity 32.3 33.2 33.2 33.2 33.2 33.2 4.0 4.0
Regasification Capacity 1.7 1.7 1.7 1.7 1.7 1.7 40.3 40.8
Total 34.0 35.0 35.0 35.0 35.0 35.0
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the supply side, liquefaction terminal led the MEA small-scale LNG market with a share of 95.1% of
the overall market in 2015. Regasification terminal is estimated to be the second-largest segment
accounting for a share of 4.9% of the overall small-scale LNG market in 2015.
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TABLE 46 MEA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY COUNTRY,
2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
UAE 11.4 11.6 11.9 12.1 12.4 12.7 13.0 13.4
Israel 6.6 6.7 6.9 7.1 7.3 7.6 7.8 8.1 2.4%
Kuwait 3.1%
*Rest of MEA 13.5 13.8 14.0 14.3 14.6 14.9 15.2 15.6 2.2%
2.7 2.8 2.9 3.0 3.1 3.3 3.4 3.5 3.6%
Total 34.2 35.0 35.7 36.6 37.4 38.3 39.3 40.6 2.6%
Note: *Rest of MEA includes Algeria, Angola, Oman, Libya, Guinea, and Nigeria.
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in the MEA region was 35.0 MTPA in 2015. This
region is projected to register a CAGR of 2.6% from 2016 to reach 40.6 MTPA by 2021. Kuwait is
estimated to be the largest market in the region with a share of 39.4% of the region’s small-scale LNG
market in 2015.
TABLE 47 MEA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 9.6 9.9 10.1 10.4 10.6 10.9 11.2 11.6 2.8%
Vehicles
Electric Power 20.7 21.1 21.5 21.9 22.3 22.8 23.3 24.0 2.3%
Generation
Maritime 1.7 1.8 1.8 1.9 2.0 2.1 2.2 2.2 4.1%
Transport
2.2 2.3 2.3 2.4 2.5 2.5 2.6 2.7 3.1%
*Others 34.2 35.0 35.7 36.6 37.4 38.3 39.3
40.6 2.6%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand side, electric power generation led the MEA small-scale LNG market with a share of
60.0% of the overall market in 2015, Heavy-duty vehicles is estimated to be the second-largest segment
(28.2%), followed by marine transport (5.1%), and the others segment accounting for 6.5% of the overall
small-scale LNG market.
9.5.1 UAE
The UAE has been the first LNG exporter in the Gulf Cooperation Council (GCC) region, which exports largely
to Japan. Surging LNG demand in power generation and a slump in the LNG prices have spurred the
demand for LNG in the UAE. Favorable LNG prices, growing demand from power generation sector, and
increasing utilization of natural gas for enhanced oil recovery are some of the factors that are expected to
drive the small-scale LNG market in the UAE in the coming years. The small-scale LNG market in the UAE is
expected to register a CAGR of 2.4% between 2016 and 2021. This growth is due to the implementation of
government policies to facilitate the adoption of LNG-based power generation, the decline in the supply of
natural gas produced domestically, and shift toward utilizing cleaner energy.
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TABLE 48 UAE: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 3.3 3.4 3.4 3.5 3.6 3.7 3.8 3.9 2.6%
Vehicles 6.9 7.0 7.1 7.2 7.4 7.5 7.7
Electric Power 0.6 0.6 0.6 0.6 0.6 0.7 0.7 7.9 2.1%
Generation 0.7 0.7 0.7 0.7 0.8 0.8 0.8
Maritime 11.4 11.6 11.9 12.1 12.4 12.7 13.0 0.7 3.9%
Transport
0.9 3.7%
*Others
13.4 2.4%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in the UAE was 11.6 MTPA in 2015 and is
projected to reach 13.4 MTPA by 2021, registering a CAGR of 2.4% between 2016 and 2021. Growing
industrialization and increasing urbanization are expected to influence the small-scale LNG market in UAE
greatly. In 2015, an LNG vessel was commissioned by the UAE to transport LNG from Das Island LNG
export facility into the transmission grid in UAE that is of the order of 14 million cubic meters per day.
9.5.2 ISRAEL
Israel is encouraging the transition to LNG as a primary energy source as it offers advantages to consumer,
environment, and economy. In 2004, Israel started the use of natural gas, mainly by the large industrial
plants and Israel Electric Corporation. Ministry of Energy and Water Resources in Israel is focusing on
promoting the distribution of small-scale LNG to smaller consumers. Currently, the company is developing
low-pressure natural gas infrastructures that can make natural gas accessible and readily available energy
source for power generation, heavy-duty vehicles, and industrial end users. In recent years, the economy in
Israel has undergone significant changes in terms of fuels. The government of Israel is developing small-
scale regasification facilities, which were set out in Government Resolutions 3260, 2178, and 177, to
increase the LNG offering to its economy.
TABLE 49 ISRAEL: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 1.8 1.9 1.9 2.0 2.0 2.1 2.2 2.3 3.4%
Vehicles 3.9 4.0 4.1 4.2 4.3 4.4 4.5
Electric Power 0.3 0.4 0.4 0.4 0.4 0.4 0.5 4.7 2.9%
Generation 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Maritime 0.5 4.6%
Transport
0.7 2.8%
*Others
Total 6.6 6.7 6.9 7.1 7.3 7.6 7.8 8.1 3.1%
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
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From the demand-side, the market size of small-scale LNG in Israel was estimated to be 6.7 MTPA in 2015
and is projected to reach 8.1 MTPA by 2021, registering a CAGR of 3.1% between 2016 and 2021.
In 2011, Ministry of Energy and Water Resources constructed a buoy-based small-scale regasification
terminal off the Hadera coast, which is owned by the Israel Natural Gas Lines Company (INGL). The buoy
approach was selected to facilitate the supply of LNG to Israel and is functioning successfully in countries
such as the U.S. and Argentina. INGL is responsible for building and operating the small-scale
regasification terminal and natural gas transmission system. Israel Electric Corporation is the largest
consumer of natural gas.
9.5.3 KUWAIT
Kuwait mainly relies on LNG imports to meet the domestic demand. The electricity demand in Kuwait is
increasingly fueled by natural gas and has resulted in the shutdown of petrochemical and refinery
operations to produce more LNG required to generate electricity. In 2015, the consumption of natural gas
from Kuwait was approximately 1.9 Bcf/d, which is equivalent to 695 Bcf/year. The country is emphasizing
on diversifying its electricity generation portfolio by replacing oil -based products with natural gas. Kuwait
imports LNG mainly from Qatar, coupled with Oman, Nigeria, Trinidad, Yemen, India, and Spain. Kuwait
signed several supply purchase agreements with Vitol, an energy trading company and Shell between
2009 and 2013.
TABLE 50 KUWAIT: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 3.8 3.8 3.9 4.0 4.1 4.2 4.3 4.5 2.5%
Vehicles 8.3 8.4 8.5 8.7 8.8 9.0 9.1
Electric Power 0.7 0.7 0.7 0.8 0.8 0.8 0.8 9.4 1.9%
Generation 0.8 0.8 0.8 0.8 0.9 0.9 0.9
Maritime 13.5 13.8 14.0 14.3 14.6 14.9 15.2 0.9 3.7%
Transport
0.9 2.5%
*Others
15.6 2.2%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Kuwait was 13.8 MTPA in 2015 and is
projected to reach 15.6 MTPA by 2021, registering a CAGR of 2.2% between 2016 and 2021.
Inadequate supply of domestic natural gas has contributed to recurrent brownouts and blackouts during
peak demand periods. The country has resolved this issue by importing LNG as a measure at its Mina Al-
Ahmadi floating terminal. Mina Al-Ahmadi terminal has flexibility to supply LNG during high seasonal
demand periods. The regasification capacity of Mina Al-Ahmadi terminal is approximately 500 MMcf/d and
is operated under a contract with Excelerate Energy. In 2016, Kuwait signed a USD 2.93 billion contract
with three firms namely Korea Gas Corporation, Hyundai Engineering Company, and Hyundai Engineering &
Construction Company for the construction of small-scale LNG regasification terminal at Al-Zour, close to
the border with Saudi Arabia.
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9.5.4 REST OF MIDDLE EAST & AFRICA
The Rest of MEA includes countries such as Algeria, Angola, Oman, Libya, Guinea, and Nigeria. Countries
such as Angola and Libya are gradually developing as key markets for small-scale LNG in MEA.
TABLE 51 REST OF MEA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 0.8 0.8 0.8 0.9 0.9 0.9 1.0 1.0 3.9%
Vehicles 1.6 1.7 1.8 1.8 1.9 1.9 2.0
Electric Power 0.1 0.1 0.2 0.2 0.2 0.2 0.2 2.1 3.3%
Generation 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Maritime 0.2 5.2%
Transport
0.2 3.9%
*Others
Total 2.7 2.8 2.9 3.0 3.1 3.3 3.4 3.5 3.6%
Note: *Others include rail transport, space heating, and air conditioning.
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in rest of MEA was estimated to be 2.8 MTPA in
2015 and is projected to reach 3.5 MTPA by 2021, registering a CAGR of 3.6% between 2016 and 2021.
9.6 SOUTH AMERICA
The South America region includes Brazil, Argentina, Colombia, and Chile. South America has become an
emerging market for small-scale LNG. The volume of small-scale LNG consumption is projected to increase
in Brazil and Argentina in the coming years. Most of the companies are interested in expanding their
presence in Brazil to leverage the economic growth of the country. Brazil has provided a new investment
avenue for small-scale LNG suppliers. Earlier, South America was focusing on achieving regional
integration and self-sufficiency and isolated from other natural gas markets globally. However, the region
began utilizing LNG to source additional natural gas supply in 2008. In 2008, South America received its
first natural gas in the form of LNG, and the volume has been growing from 0.5 bcm in 2008 to 17.2 bcm
in 2015.
In South America, small-scale LNG can be supplied to heavy-duty and marine transport, power generation,
and industrial sectors through virtual markets in small pipelines by replacing oil-based products and using
cryogenic trucks. In South America, key drivers promoting the use of small-scale LNG are the requirement
to reach the remote-located consumers and monetization of stranded gas supplies.
TABLE 52 SOUTH AMERICA: SMALL-SCALE LNG LIQUEFACTION TERMINAL CAPACITY (SUPPLY-SIDE),
BY COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
0.5 0.5
Colombia 0.0 0.3 0.3 0.3 0.3 0.3 4.3 4.3
4.8 4.8
Peru 4.3 4.3 4.3 4.3 4.3 4.3
Total 4.3 4.6 4.6 4.6 4.6 4.6
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
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TABLE 53 SOUTH AMERICA: SMALL-SCALE LNG REGASIFICATION TERMINAL CAPACITY
(SUPPLY-SIDE), BY COUNTRY, 2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021
9.2 9.2
Brazil 11.0 11.0 11.0 11.0 11.0 11.0 7.1 7.1
8.6 8.6
Argentina 7.1 7.1 7.1 7.1 7.1 7.1 24.9 24.9
Chile 3.7 8.0 8.0 8.0 8.0 8.0
Total 21.9 26.1 26.1 26.1 26.1 26.1
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
TABLE 54 SOUTH AMERICA: SMALL-SCALE LNG MARKET SIZE (SUPPLY-SIDE), BY TYPE,
2014–2021 (MTPA)
Type 2014 2015 2016 2017 2018 2019 2020 2021
4.3 4.6 4.6 4.6 4.6 4.6 4.8 4.8
Liquefaction 21.9 26.1 26.1 26.1 26.1 26.1 24.9 24.9
Capacity 26.1 30.7 30.7 30.7 30.7 30.7 29.7 29.7
Regasificatio
n Capacity
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the supply side, regasification terminal led the South America small-scale LNG market with a share of
85.1% of the overall market, in terms of volume, in 2015. Liquefaction terminal is estimated to be the
second-largest segment accounting for the remaining 14.9% of the overall small-scale LNG market in
2015.
TABLE 55 SOUTH AMERICA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY COUNTRY,
2014–2021 (MTPA)
Country 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Brazil 12.7 13.0 13.3 13.7 14.0 14.4 14.8 15.3
4.2 4.3 4.4 4.6 4.7 4.9 5.1 5.3 2.8%
Chile 7.9 8.1 8.3 8.6 8.8 9.0 9.2 9.7 3.5%
2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0%
Argentina 2.9 3.0 3.1 3.2 3.4 3.5 3.6 4.1%
Colombia 29.8 30.7 31.6 32.5 33.5 34.5 35.5 3.7 3.7%
*Rest of South
America 36.9 3.2%
Total
*Rest of South America includes Bolivia, Venezuela, Peru, Uruguay, and Ecuador
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in South America was 30.7 MTPA in 2015. This
market in the region is projected to register a CAGR of 3.2% from 2016 to reach 36.9 MTPA by 2021. Brazil
was the largest market in the region with a share of 42.3% of the region’s small-scale LNG market in 2015,
in terms of volume.
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TABLE 56 SOUTH AMERICA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 24.6 25.2 25.9 26.6 27.3 28.1 28.9 29.9
Vehicles 2.6 2.6 2.7 2.8 2.9 3.0 3.2 3.3 2.9%
Electric Power 0.9 0.9 1.0 1.0 1.0 1.1 1.1 1.2
Generation 1.9 1.9 2.0 2.1 2.2 2.2 2.3 2.4 3.8%
Maritime 29.8 30.7 31.6 32.5 33.5 34.5 35.5
Transport 36.9 4.8%
4.0%
*Others 3.2%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, heavy-duty vehicles led the South America small-scale LNG market with a share of
82.2% of the overall market in 2015. Electric power generation is estimated to be the second-largest
segment (8.6%), followed by marine transport (3.0%), and others accounting for 6.3% of the overall market.
9.6.1 BRAZIL
Brazil is the largest consumer of small-scale LNG in the South America region and consumed 42.3% of the
total South American sales of small-scale LNG in 2015. The growing consumption of small-scale LNG in
Brazil is almost in line with the anticipated demand trends at the global level. In Brazil, the oil & gas
industry is regulated by Federal Law 11909/2009 (Gaw law) and Federal Law 9478/1997 (Petroleum
Law). The National Petroleum Agency in Brazil is accountable for contracting, regulating, and supervising
development, exploration, production, refining, distribution, and retail activities.
LNG distribution and regasification activities in Brazil follow numerous administrative regulations issued by
National Petroleum Agency which states that such activities should be in compliance with the state and
federal technical standards. These standards are issued by the National Institute of Metrology (INMETRO),
Brazilian National Standards Association (ABNT), International Organization of Legal Metrology (OIML),
National Fire Protection Association (NFPA 59-A), and International Organization for Standardization (ISO).
In 2010, Federal Decree 7382/2010 has established a policy in Brazil, which states that any small or
large-scale terminal which liquefies or regasifies natural gas requires the approval of National Petroleum
Agency. Ordinance 118/2000 implemented by the National Petroleum Agency regulates the construction,
operation, maintenance, and LNG distribution activities.
TABLE 57 BRAZIL: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016–2021)
Heavy-Duty 10.6 10.8 11.1 11.3 11.6 11.9 12.2 12.6
Vehicles 1.0 1.0 1.0 1.1 1.1 1.2 1.2 1.2 2.6%
Electric Power 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.5
Generation 0.8 0.8 0.8 0.8 0.9 0.9 0.9 1.0 3.6%
Maritime
Transport 12.7 13.0 13.3 13.7 14.0 14.4 14.8 15.3 4.6%
3.5%
*Others 2.8%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
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From the demand side, the market size of small-scale LNG in Brazil was 13.0 MTPA in 2015 and is
projected to reach 15.3 MTPA by 2021, registering a CAGR of 2.8% between 2016 and 2021.
Small-scale LNG terminal in Brazil is mandated to follow INMETRO and ABNT standards for road
transportation of hazardous materials, material handling, and installation of trucks. Additionally, the
construction of LNG fueling stations must follow fire brigade, municipal, road authorities, and
environmental regulations. The criteria for the design, building, and operation of the vehicular natural gas
filling system derived from liquefied natural gas (LNG) is established by the ABNT Standard NBR
15244/2005.
9.6.2 CHILE
Currently, 90% of the Chile’s natural gas is imported which is majorly in the form of LNG. These imports
come from countries such as Argentina, Qatar, Yemen, Trinidad, and Tobago. During the past few decades,
Chile imported natural gas from Argentina under an international treaty known as Gas Integration Protocol.
Later in 2009, Chile developed two small-scale LNG regasification terminals, namely, LNG Mejillones and
LNG Quintero. Since 2009, LNG Quintero has been supplying LNG to central Chile. Additionally, LNG
Mejillones has been supplying LNG since 2010 to the mining industry in Chile. These small-scale LNG
regasification terminals have been considered as a secured and reliable LNG source in the energy sector
of Chile.
TABLE 58 CHILE: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 3.3 3.4 3.6 3.7 3.8 3.9 4.0 4.2 3.3%
Vehicles 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Electric Power 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.5 4.0%
Generation 0.3 0.3 0.4 0.4 0.4 0.4 0.4
Maritime 4.2 4.3 4.4 4.6 4.7 4.9 5.1 0.2 4.9%
Transport
0.5 4.5%
*Others
5.3 3.5%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand side, the market size of small-scale LNG in Chile was 4.3 MTPA in 2015 and is projected
to reach 5.3 MTPA by 2021, registering a CAGR of 3.5% between 2016 and 2021.
There is a huge opportunity for the small-scale LNG business in Chile, owing to the shale gas progress in
developed countries and Chile’s requirement to increase its energy supply. Similarly, only natural gas
transportation in Chile is subjected to open access by the third party. Furthermore, the prices about LNG
purchases, LNG regasification, and storage activities are subjected to negotiation between the parties. The
design, construction, maintenance, operation, and decommissioning activities of LNG terminals in Chile
are by the Supreme Decree 277 for safety regulations. In 2014, Empresa Nacional del Petroleo (ENAP)
announced that it had signed a long-term contract with the U.S. to supply shale gas starting from 2016,
which would be provided from the Sabine Pass terminal in Louisiana
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9.6.3 ARGENTINA
Argentina accounted for the second-largest small-scale LNG market in South America. It is one of the
largest economies in this region and one of the largest producers of LNG in South America and exports
LNG to countries such as Chile, Brazil, and Uruguay. Earlier, Argentina exported LNG to neighboring
countries on a regular basis. In 2004, Argentina broke many contracts from Brazil and Chile due to the fall
of the domestic natural gas production below its consumption. This decision created major economic
problems for the power generation, heavy-duty transport, and industrial sectors in Chile and Brazil.
Currently, Argentina supplies small quantities of natural gas to residential customers.
In 2004, Argentina started importing LNG from Bolivia to meet its natural gas demand and also signed a
20 year LNG supply contract in 2006. The new 20 year LNG supply contract included steady shipments of
small-scale LNG between the two countries.
TABLE 59 ARGENTINA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 6.5 6.7 6.8 7.0 7.2 7.3 7.5 7.8 2.7%
Vehicles 0.7 0.8 0.8 0.8 0.8 0.9 0.9
Electric Power 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.9 3.5%
Generation 0.5 0.5 0.5 0.5 0.5 0.5 0.6
Maritime 7.9 8.1 8.3 8.6 8.8 9.0 9.2 0.3 4.7%
Transport
0.6 4.1%
*Others
9.7 3.0%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand side, the market size of small-scale LNG in Argentina was 8.1 MTPA in 2015 and is
projected to reach 9.7 MTPA by 2021, registering a CAGR of 3.0% between 2016 and 2021.
Small-scale LNG imports can play a major role in fulfilling the natural gas demand of Northern Argentina,
as it is not well supplied by domestic natural gas transmission network and relies mainly on expensive oil
products. Reduction of natural gas exports and renewal of natural gas imports from Bolivia in Argentina
was inadequate to fulfill the rising demand for natural gas. As a result, Argentina turned majorly to small-
scale LNG production to supplement its natural gas demand.
9.6.4 COLOMBIA
The natural gas sector in Colombia is regulated by the Ministry of Mines and Energy, established by the
Federal Decree 0381/2012. The Ministry of Mines and Energy set up the technical and administrative
ordinance regarding exploration, production, transportation, and distribution of natural gas. In 2012, the
Ministry of Mines and Energy issued a draft technical ordinance to regulate the design, construction, and
operation of LNG liquefaction and regasification facilities in Colombia. The draft technical ordinance covers
the aspects about the formation of personnel involved in the LNG liquefaction and regasification facilities.
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TABLE 60 COLOMBIA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE), BY END USER,
2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 1.8 1.9 1.9 2.0 2.1 2.1 2.2 2.3 3.9%
Vehicles 0.2 0.2 0.2 0.3 0.3 0.3 0.3
Electric Power 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.3 4.7%
Generation 0.1 0.1 0.1 0.1 0.2 0.2 0.2
Maritime 2.2 2.3 2.4 2.5 2.6 2.7 2.8 0.1 5.4%
Transport
0.2 4.8%
*Others
2.9 4.1%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Colombia was 2.3 MTPA in 2015 and is
projected to reach 2.9 MTPA by 2021, registering a CAGR of 4.1% between 2016 and 2021.
In 2007, the government of Colombia signed a supply contract with Venezuela to supply small-scale LNG,
as Venezuela’s liquefaction infrastructure is not capable of transporting LNG to western parts of the
country. In Colombia, companies such as EXMAR and Pacific Rubiales together are building a small-scale
LNG liquefaction terminal to target the Caribbean and Central American markets. In 2015, Colombia
reduced its LNG exports to meet its demand for power generation.
9.6.5 REST OF SOUTH AMERICA
The rest of South America includes countries such as Bolivia, Venezuela, Peru, Uruguay, and Ecuador.
Countries such as Bolivia and Ecuador are gradually developing as key markets for small-scale LNG in
South America.
TABLE 61 REST OF SOUTH AMERICA: SMALL-SCALE LNG MARKET SIZE (DEMAND-SIDE),
BY END USER, 2014–2021 (MTPA)
End User 2014 2015 2016 2017 2018 2019 2020 2021 CAGR
(2016 – 2021)
Heavy-Duty 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 3.5%
Vehicles 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Electric Power 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.3 4.3%
Generation 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Maritime 2.9 3.0 3.1 3.2 3.4 3.5 3.6 0.1 5.3%
Transport
0.3 4.6%
*Others
3.7 3.7%
Total
Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
From the demand-side, the market size of small-scale LNG in Rest of South America was estimated to be
3.0 MTPA in 2015 and is projected to reach 3.7 MTPA by 2021, registering a CAGR of 3.7% between 2016
and 2021.
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10 COMPETITIVE LANDSCAPE
10.1 INTRODUCTION
The competitive landscape of the small-scale LNG market covers the growth strategies adopted by the key
market players between 2014 and 2016. The small-scale LNG market comprises global as well as local
market players. These players have adopted various strategies to diversify their presence globally and
increase their market share. Some of the major strategies include expansions, agreements, and joint
ventures.
The key players in the small-scale LNG market are The Linde Group (Germany), Wärtsilä (Finland),
Honeywell International Inc. (U.S.), General Electric (U.S.), and Engie (France).
FIGURE 22 AGREEMENTS WAS THE MOST PREFFERED GROWTH STRATEGY BY KEY PLAYERS
BETWEEN 2014 AND 2016
COMPANY Agreements Expansions Joint Venture
NAME
THE LINDE GROUP The Linde Group and Elliott Group signed an agreement to Bomin Linde LNG and Aktien- Bomin Linde LNG, a member of
develop a main refrigerant cycle compression section of Linde’s Gesellschaft EMS (AG EMS) Linde Group signed a time charter
StarLNGTM plants ranging from 0.2 MMTPA to 1.3 MMTPA. signed a contract for the with ship-owner Bernhard Schulte
delivery of LNG in Germany. for a 7,500 cu.m LNG bunker
supply vessel.
WÄRTSILÄ Wärtsilä signed a Memorandum of Understanding (MoU) with ENGIE, Wärtsilä announced to develop
a French multinational company to develop services and solutions in mid-size LNG power plants as
the small scale LNG sector. The agreement includes LNG distribution EPC contractor and take up
in remote areas and islands, LNG for ships, small-scale LNG and bio LNG terminal and ship building
liquefaction, and LNG to power stations. projects in India.
HONEYWELL Honeywell International Inc. announced that its process automation and
INTERNATIONAL INC. natural 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 customers globally.
ENGIE Engie together with Kolin and Kalyon, a Turkish construction Engie’s global energy
company have built an ETKI LNG terminal with a vessel capacity of management division of France
145,000 m3 in Turkey and is the first LNG import terminal in the plans to expand in Istanbul by
country. setting up a gas and power
trading platform.
Note: - indicates events that will have a significant impact on the market
Source: Press Releases, Expert Interviews, and Company Websites
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10.2 COMPETITIVE SITUATIONS AND TRENDS
Agreements between the small-scale LNG terminal operators and LNG suppliers were the key strategy
adopted by industry players to grow in the small-scale LNG market. This strategy accounted for around 65%
of the total developmental activities adopted between 2014 and 2016. Growth in the development of
services and solutions in the small-scale LNG sector including LNG distribution, regasification, and
liquefaction across the globe has encouraged companies to adopt this strategy to strengthen their
business networks. Market players are making heavy investments in R&D activities to suffice the needs of
marine and energy markets. Players such as The Linde Group (Germany), Wärtsilä Corporation (Finland),
Honeywell International Inc. (U.S.), General Electric (U.S.), and Engie (France) have adopted this strategy to
strengthen their businesses.
In addition to agreements, companies also adopted expansions strategy to diversify their product portfolio.
This strategy accounted for approximately 30% of the total number of developmental activities adopted by
players in the small-scale LNG market between 2014 and 2016. Moreover, strategies such as joint venture
were adopted by the companies to diversify their business globally and strengthen their business networks.
These strategies accounted for only 4% of the business activities adopted by players in the small-scale LNG
market between 2014 and 2016.
FIGURE 23 2016 WAS OBSERVED TO BE MOST ACTIVE YEAR IN TERMS OF DEVELOPMENTS
WITHIN THE SMALL-SCALE LNG MARKET
16
14 1
N um ber of developments 12
6
10
8
6
41 4 8
2015 2016
23
0
2014
Agreements Expansions Joint Ventures
Source: Press Releases, Company Publications, Company Websites, and MarketsandMarkets Analysis
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FIGURE 24 MAJOR GROWTH STRATEGIES IN THE GLOBAL SMALL-SCALE LNG MARKET, 2014-
2016
65% 31%
Agreements Expansions
4%
Joint Ventures
Mergers &
Acquisitions
Source: Press Releases, Company Publications, Company Websites, and MarketsandMarkets Analysis
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10.3 MARKET SHARE ANALYSIS FOR THE KEY PLAYERS
FIGURE 25 TOP 5 MARKET PLAYERS ACCOUNTED FOR MORE THAN HALF OF THE MARKET
SHARE IN 2015
42.9% OTHERS 13.6THE LINDE GROUP
• Others include companies such %
as IHI Corporation, GAZPROM,
Skangas AS, Sofregaz S.A., 12.8WARTSILA %
Dresser-Rand Group Inc. ,
Prometheus Energy, Plum
Energy, Excelerate Energy,
L.P., Cryostar SAS,
and others
HONEYWELL 8.1%
INTERNATIONAL INC.
GENERAL ELECTRIC 5.3%
17.3% Engie
• One of the oldest and leading service providers in the
small-scale LNG business
• The company operates LNG terminals to supply LNG
to industrial and tertiary-sector customers in Europe,
Latin America, North America, and Asia Pacific
Note: Market share analysis has been calculated on the basis of company’s regional penetration, product portfolio, business
segmental revenues, and key technology advancements
Source: Press Releases, Company Publications, Company Websites, and MarketsandMarkets Analysis
The top five companies considered in the market share analysis include The Linde Group (Germany),
Wärtsilä Corporation (Finland), Honeywell International Inc. (U.S.), General Electric (U.S.), and Engie
(France). These top five companies cumulatively accounted for a share of 57.1% of the overall small-scale
LNG market. Engie accounted for a share of 17.3% of the overall small-scale LNG market. The company
operates LNG terminals to supply LNG to industrial and tertiary sector customers in Europe, Latin America,
North America, and Asia-Pacific. The Linde Group accounted for the second-largest share of 13.6% of the
market in 2015, owing to the vast experience in the design, development, and construction of natural gas
processing plants, including small-scale LNGs. Other companies present in this market are IHI Corporation
(Japan), GAZPROM (Russia), Skangas AS (Norway), Sofregaz S.A. (France), Dresser-Rand Group Inc. (U.S.),
Prometheus Energy (U.S.) and other private players, all together accounted for 42.9% of the market share,
driven by initiatives taken by these players in terms of agreements and expansions in the last few years.
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10.4 COMPETITIVE LANDSCAPE
10.4.1 AGREEMENTS
Agreements accounted for the largest share of 65% of the total strategies adopted by the companies
during the forecast period. In agreements, both the parties are entitled to enter into a partnership with any
company for carrying on the business authorized by their respective Memorandum of Association (MoA).
One of the companies that adopted this growth strategy is Wärtsilä Corporation.
TABLE 62 AGREEMENTS, 2014–2016
Date Company Name Development
Skangas AS
December Skangas AS signed an agreement with Statoil ASA, an oil and gas company in
2016 Norway for the reloading of small-scale LNG at Klaipeda LNG Terminal in
Lithuania.
November Wärtsilä
2016 Corporation Wärtsilä signed a Memorandum of Understanding (MoU) with ENGIE, a French
multinational company to develop services and solutions in the small-scale LNG
November Wärtsilä sector. The agreement includes LNG distribution in remote areas and islands,
2016 Corporation LNG for ships, small-scale LNG and bio-liquefaction, and LNG to power stations.
September Wärtsilä Wärtsilä, a Finland-based energy solution provider signed a Memorandum of
2016 Corporation Understanding (MoU) with Engie to develop services and solutions in small-scale
LNG industry. The agreement covers four streams, namely, LNG distribution in
June 2016 Gazprom remote areas, LNG for ships, small-scale LNG and bio-liquefaction, and LNG to
April 2016 IHI Corporation power solutions. This agreement is expected to meet the supply demand gap
within the small-scale LNG industry.
March 2016 The Linde Group
Wärtsilä signed an EPCI (engineering, procurement, construction, and
March 2016 Gazprom installation) contract to supply a small-scale LNG in Raahe (Finland), which is
expected to be operational in April 2018. The terminal includes an LNG
December Honeywell regasification system, two LNG vacuum insulated storage tanks with a combined
2015 International Inc. net volume of 1,400m3, truck loading and unloading functions, and all required
civil structures.
November Dresser-Rand
2015 Group Inc. 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.
IHI Corporation was awarded an EPC contract by the Kinder Morgan, Inc. under
an agreement for the construction of an LNG liquefaction plant at Elba Island,
Georgia
The Linde Group and Elliott Group signed an agreement to develop the main
refrigerant cycle compression section for Linde’s StarLNGTM plants ranging
from 0.2 MMTPA to 1.3 MMTPA to increase the terminal’s operational efficiency
in producing LNG at short intervals.
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.
Honeywell International Inc. announced that its process automation and natural
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
customers globally. This technology is expected to improve the overall quality of
the LNG delivery, hence enhancing the efficiency of end users.
Dresser-Rand Group, Inc. received an order for two LNGo natural gas
liquefaction systems from Elizabethtown Gas, a subsidiary of AGL Resources
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April 2015 The Linde Group based in New Jersey. The liquefaction systems are expected to produce
approximately 13,500 gallons of liquefied natural gas (LNG) per day.
April 2015 Prometheus
Energy Cryo AB, a Swedish engineering subsidiary of Linde Group, has been awarded a
April 2014 Honeywell contract by the Meyer Turku Shipyard of Finland to construct a liquefied natural
International Inc. gas (LNG) fuel gas system for the next-generation high-speed ferry.
April 2014
January IHI Corporation Prometheus Energy entered into an agreement with WPX Energy (U.S.) to supply
2014 LNG plus related equipment and services to utilize LNG in its drilling operations
Honeywell
International Inc. 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.
IHI Corporation was awarded an EPC contract by PTT LNG Company Limited for
the construction of the LNG receiving terminal in the Map Ta Phut Industrial
Estate located in Rayong Province, Thailand.
Honeywell International Inc. signed an agreement with Qatar Petroleum (QP) to
develop innovative ways to treat natural gas for the production of LNG.
Source: Company Websites, Company Press Releases, Company Publications, and MarketsandMarkets Analysis
10.4.2 EXPANSIONS
The strategy of expansion accounted for a share of 30% of all growth strategies adopted by players in the
global small-scale LNG market between 2014 and 2016. Companies adopted this strategy to increase
their foothold across the globe especially across the emerging economies.
TABLE 63 EXPANSIONS, 2014–2016
Date Company Name Development
December Engie
2016 Engie together with Kolin and Kalyon, a Turkish construction company have built
Engie an ETKI LNG terminal with a vessel capacity of 145,000 m3 in Turkey and is the
December first LNG import terminal in the country. This agreement is expected to expand
2016 Gazprom its presence in Turkey, apart from France.
October Skangas AS Engie together with Kolin and Kalyon, a Turkish construction company have built
2016 Gazprom an ETKI LNG terminal with a vessel capacity of 145,000 m3 in Turkey and is the
Wärtsilä first LNG import terminal in the country. This agreement is expected to expand
September Corporation its presence in Turkey, apart from France.
2016 The Linde Group
GAZPROM announced to develop a program for a small scale LNG production,
July 2016 which includes a list of gas distribution stations and liquefaction technologies
for LNG production. The program involves the construction of mobile LNG filling
June 2016 stations and cryogenic filling facilities.
January Skangas AS has commissioned Finland’s first LNG import terminal, which is
expected to support off-grid maritime, industrial, and heavy-duty road transport
firms.
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 plants in western European Russia.
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.
Bomin Linde LNG and Aktien-Gesellschaft EMS (AG EMS) signed a contract for
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2014 the delivery of LNG in Germany, resulting in the expansion of the customer base,
benefiting both the companies
Source: Company Websites, Company Press Releases, Company Publications, and MarketsandMarkets Analysis
10.4.3 JOINT VENTURES
The strategy of joint ventures accounted for only 4% of all growth strategies adopted by players in small-
scale LNG market between 2014 and 2016. Companies adopted this strategy to diversify their regional
presence and widen their product and technology range in existing and emerging markets. Similarly,
companies enter into joint ventures to partner up with a local business and enter a foreign market.
TABLE 64 JOINT VENTURES, 2014–2016
Date Company Name Development
The Linde Group
October Bomin Linde LNG, a member of Linde Group, signed a time charter with ship-owner
2016 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 venture in
which Bomin Linde LNG holds 90% share of the remaining 10% held by Klaipėdos
Nafta, the owner and operator of the LNG import terminal in Klaipeda and
Lithuania.
Source: Company Websites, Company Press Releases, Company Publications, and MarketsandMarkets Analysis
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11 COMPANY PROFILES
11.1 INTRODUCTION
The small-scale LNG market is dominated by major players such as The Linde Group (Germany), Wärtsilä
Corporation (Finland), Honeywell International Inc. (U.S.), General Electric (U.S.), and Engie (France).
FIGURE 26 GEOGRAPHIC REVENUE MIX OF TOP 5 MARKET PLAYERS
COMPANY AMERICAS EMEA ASIA-PACIFIC
The Linde Group
Wärtsilä
Honeywell International Inc.
General Electric
Engie
LOW MEDIUM HIGH VERY HIGH
*(0 – 20%) (20 – 40%) (40 – 60%) (60% and above)
Note: EMEA = Europe, Middle East & Africa
Source: Annual Reports, SEC Filings, Press Releases, Investor Presentations, and MarketsandMarkets Analysis
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11.2 THE LINDE GROUP
11.2.1 BUSINESS OVERVIEW
The Linde Group comprises three divisions: gasses, engineering, and logistics services. The Linde Group is
one of the leading companies in the international gasses market. The company offers a wide range of
liquefied and compressed gasses, coupled with chemicals across various industries such as steel
production, energy sector, chemical processing, environmental protection, welding, food processing, glass
production, and electronics. The Linde Group offers small to mid-scale LNG terminals under the
engineering division. The company also manufactures heat exchange equipment required at various stages
of natural gas processing. The Linde Group has vast experience in the design, development, and
construction of natural gas processing plants, including small-scale LNG terminals along with storage,
import, export, and loading facilities.
FIGURE 27 THE LINDE GROUP: COMPANY SNAPSHOT
COMPANY AT A GLANCE - 2015 RECENT FINANCIALS
Founded: 1879 Revenue (USD Billion) 25.0 22.9 20.7 19.6
Headquarters: Munich, Germany 20.0 2013 2014 2015
Employees: 64,538 15.0
Revenue: USD 19.6 Billion 10.0
Ownership: Public (FWB: LIN)
5.0
0.0
GEOGRAPHIC REVENUE MIX BUSINESS REVENUE MIX
27% EMEA 1% Gases Division
39% Americas 14% Engineering Division
Asia-Pacific Other Activities
34% 85%
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.
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