LNG Storage Tank Market is expected to reach US$ 14,224.27 million by 2028

Growing Application of Floating Storage Regasification Unit (FSRU) to Provide Growth Opportunities for LNG storage tanks Market during 2021–2028

According to our latest market study on “LNG storage tanks Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by configuration, type and material,” the market is expected to grow from US$ 8346.93 million in 2021 to US$ 14224.27 million by 2028; it is estimated to grow at a CAGR of 7.9% from 2021 to 2028.

The mounting readiness of liquefied natural gas (LNG) offers access to least carbon-intensive hydrocarbon among various coastal globally. The floating storage and regasification units (FSRU) terminal plays a significant role in the LNG value chain, developing the interface between the local gas supply infrastructure and the LNG carriers. The FSRU is convenient, adaptable, and avails natural gas to the market faster than land-based installations. The FSRU vessels are installed on ships or offshore, depending upon the design they integrate. The FSRUs are being equipped in two different ways: it is fitted either as an old gas carrier that can easily be converted into an independent unit placed in an offshore installation or installed as a separate unit aboard the LNG carrier itself. When the FSRU unit is installed in the ship, its construction is similar to other LNG ships undergoing LNG trading operation with regular dry-docking and complying with all the required international marine safety standards. The significant advantage of such installation is that the heating and liquefaction process is carried out within the vessel rather than unloading the fuel in its semi-frozen slushy state. Thus, the increasing application of FSRU is creating a massive opportunity for the growth of the LNG storage tanks market

The LNG storage tanks market is segmented on the bases of configuration, type, material, and geography. Based on configuration, the market is segmented into self-supporting tank and non-self-supporting tank. In 2020, the non-self-supporting tank segment accounted for a larger market share. In terms of type, the market is bifurcated into LNG carrier and LNG fueled vessel. In 2020, the LNG carrier segment accounted for a larger share in the market. Based on material, the market is segmented into stainless steel, aluminum alloy, 9% nickel steel, invar alloy, C-MN Steel. In 2020, the stainless steel segment accounted for the largest market share. Geographically, the global LNG storage tanks market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, APAC accounted for the significant share in the market.

Impact of COVID-19 Pandemic on North America LNG storage tanks Market

Owing to favorable government policies to boost innovation and reinforce infrastructure capabilities, North America have the highest acceptance and development rate of emerging technologies. Any impact on industries is therefore projected to have a negative influence on the region's economic development. Currently, due to the COVID-19 outbreak, the US is the world's worst affected country, thus affecting the sudden stands still across all the industries present in the region.

In North America, especially the US, witnessed an unprecedented rise in number of COVID-19 cases, which disrupted its LNG trade activities in the oil & gas sector and subsequently impacted the demand for LNG storage tank in 2020 and is expected to continue in 2021. Additionally, as per the US Energy Information Administration (EIA) due to COVID-19, ~175 US LNG cargoes were cancelled in October 2020, out of which around 80% of the LNG cargoes cancelled, which are scheduled for the summer months. The EIA anticipated that demand of LNG will slowly increase by the end of 2021. Moreover, the considerable decline in overall global gas prices further restricted the oil & gas related projects and other activities that negatively influenced the demand for LNG storage tank. Similar trend was witnessed in other North American countries such as Canada and Mexico. However, the countries are expected to overcome the swift drop in demand as the countries continue to open their economic activities especially in the recent months for revival of business activities. However, the demand for the same could not be catered by the country due to the temporary shutdown of transportation facilities across the region, which has negatively hindered the LNG trade cross-border. Thus, owing to the above-mentioned factors, LNG storage tank market is said to be negatively affected owing to the outbreak of the COVID-19 across the region:

Conrad Shipyard, VT Halter, and Corban Energy Group are among the major companies operating in the LNG storage tanks market.

LNG storage tanks Market — by Geography (2020, %)

The report segments the global LNG storage tanks market as follows:

By Configuration

• Self-supporting tanks
• Non self-supporting tanks

By Type

• LNG Carrier
• LNG fuelled vessels

By Material

• Stainless steel
• Aluminium alloy
• 9% Nickel steel
• Invar alloy
• C-MN Steel

By Geography

• North America
  • US
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Italy
  • UK
  • Russia
  • Rest of Europe
• Asia Pacific (APAC)
  • China
  • India
  • South Korea
  • Japan
  • Australia
  • Rest of APAC
• Middle East & Africa (MEA)
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA
• South America (SAM)
  • Brazil
  • Argentina
  • Rest of SAM