The global C-Type LNG Carrier market size is expected to reach US$ 6,469.02 million by 2028, registering a CAGR of 7.54% from 2022 to 2028, according to a new research study conducted by The Insight Partners.
Increasing Demand for Clean Energy to Provide Growth Opportunities for C-Type LNG Carrier Market During 2022–2028
As per the Natural Gas World, the global trading of LNG reached an all-time high of 372.3 Metric tons in 2021, up by 4.5% from 2020, with an increase of 16.2 mn mt/yr annually. In 2021, China was a major contributor in the trading as its net import of LNG volume increased by 10.4 million metric tons per year, while the countries in Asia Pacific increased the trading volume of LNG, which climbed from 68 million metric ton per year in 2020 to 79.3 million metric ton per year in 2021. Also, as per the data from Global Trade Tracker and China’s General Administration of Customs, in 2021, China imported LNG in large amounts which averaged 10.5 billion cubic feet per day (Bcf/d), an increase of 19% compared with 2020. Thus, the increase in LNG import is augmenting the need for LNG liquefaction, further strengthening the demand for LNG carrier for transportation purposes, helping the C-type LNG carrier market grow. As per the IGU-World-LNG-Report-2022, as of April 2022, LNG liquefaction of 136.2 million tonnes per annum (MTPA) capacity was under construction or approved for development. However, only 7.7 MTPA of overall capacity is expected to come online in the second half of 2022, and the rest is anticipated to come between 2023 and 2027. Also, according to the same report, global liquefaction capacity reached 459.9 MTPA in 2021, and the utilization rate was 80.4% on average, compared to 74.6% in 2020.
Asia Pacific holds the largest market share across the globe. This can be attributed to the increasing demand for natural gas due to high industrial growth and the adoption of clean energy sources. The region is expected to dominate the C-Type LNG carrier market during the forecast period. Most of the demand in the region comes from China. In 2020, the Chinese government announced plans to build the country's largest LNG carrier with a capacity of 270,000 cubic meters to meet the country's growing demand for clean fuel. However, China's LNG imports are still highly dependent on foreign LNG carriers, with over 65% dependence on external capacity. Hence, the growing need for LNG is anticipated to fuel the market growth over the forecast period. Furthermore, regional companies are partnering with global storage tank manufacturers to ensure that LNG is installed and transported efficiently. For instance, McDermott International's CB&I Storage Solutions division has won a contract to build an LNG import plant in Batangas, the Philippines. Atlantic Gulf and Pacific Company were awarded the contract (AG&P). The contract aims for designing, procuring, and building a liquefied natural gas (LNG) storage tank for AG&P's LNG import and regasification terminal in the Philippines. The facility will first have a capacity of up to 3 million tonnes per annum of regasified LNG. It will also have a scalable onshore regasification capability of 420 mmscfd and a storage capacity of about 200,000 cubic meter. Thus, such growth prospects are expected to propel the C-type LNG carrier market growth over the projected period.
C-Type LNG Carrier Market – by Geography, 2021
C-Type LNG Carrier Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Product Type (Cylindrical, Bi-Lobe, and Tri-Lobe), Application (Marine, Oil and Gas, Petrochemical, and Others), and Geography
C-Type LNG Carrier Market Size & Share | Global Analysis 2028
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Source: The Insight Partners Analysis
China's natural gas usage is predicted to establish a new high in 2021, as the country's economy is recovering faster than the Rest of the world. As a result of the increased demand for natural gas, the government is increasingly focused on developing new bulk carriers and LNG-fueled vessels. For example, China's state-controlled CNOOC (China National Offshore Oil Corporation) has agreed to supply LNG as bunker fuel for 50 bulk carriers that China State Shipbuilding (CSSC) and Guangdong Shipping Group would design and build. Furthermore, State-owned enterprise Cosco Shipping Energy Transportation's recent order of an LNG-fueled VLCC (Very Large Crude Carrier) is a significant advance in the wider acceptance of natural gas as a marine fuel. The Middle East's gas production is soaring, and the region surpassed Russia's output in 2019, making it the world's second-largest gas producer after North America. According to public energy estimates, the region produced about 730-billion-meter cube of LNG in 2020, which is expected to rise to almost 920 billion m3 by 2030. In 2018, the Middle East surpassed Asia in gas production, with 665 billion m3 produced, up from 465 billion m3 in 2010. Thus, such a rise in gas production is fueling the market growth.
The C-type LNG carrier market has been segmented based on product type and application. Based on product type, the C-type LNG carrier market is further segmented into cylindrical, bi-lobe, and tri-lobe. In terms of application, the C-type LNG carrier market is segmented into marine, oil and gas, petrochemical, and others.
DSME Co. Ltd; Hyundai Heavy Industries Co. Ltd; Mitsubishi Heavy Industries Ltd; TGE Marine Gas Engineering GmbH; Gas Entec; Komarine Co.; Torgy LNG AS; China Shipbuilding Trading Co., Ltd.; Knutsen OAS Shipping; and Gaslog Ltd. are among the key players profiled during this study on the C-type LNG carrier market. In addition, several other important market players were studied and analyzed during the course of this market research study to get a holistic view of the global C-type LNG carrier market and its ecosystem.
The COVID-19 pandemic negatively impacted the global C-type LNG carrier market. The demand for liquid natural gas fell sharply due to lockdowns in various parts of the world, especially in China, India, and Europe. For example, the lockdown caused delays in shipping operations from China to European countries. This decline in demand dropped the prices of natural gas and LNG in Asia and Europe to their lowest in years. In addition, prices for spot LNG cargoes also remained low well into 2021. The decline in demand for LNG prompted a reduction in the requirement for C-Type LNG carriers. However, in 2021, with the ease of lockdown restrictions, the market gained momentum. During the COVID-19 pandemic, lockdowns slowed construction on projects in the works, and companies delayed final investment decisions (FIDs) on potential LNG supply projects by several years. Therefore, the global C-Type LNG carrier market could face a supply shortfall in the next few years. This situation appeared unlikely at the start of 2020 when planned projects with 186 million tons of capacity were in the pipeline. The ability of the oil & gas industry to recover from the impacts of COVID-19 will have a long-term effect on companies' potential to secure the financing required for multibillion-dollar investments in the C-Type LNG carrier market.
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