Publication Month: Sep 2022 | Report Code: TIPRE00029686 | No. of Pages: 150 | Category: Automotive and Transportation | Status: Published
The C-type tanks are insulated cylindrical, bi-lobe-shaped, or tri-lobe-shaped tanks that can be fully or partially pressurized, depending on the liquefied gas to be stored. These tanks are found onboard small and mid-sized LPG carriers and small-scale LNG carriers. Type C tanks can store LNG at a higher pressure than Type A and Type B tanks, though space optimization in these tanks is lower. The growing consumption of LNG across the world from many end users, such as the power generation industry and industrial activities, is increasing the LNG liquefaction capacity. The surge in newbuild contracting and fleet expansion and the increase in demand for clean energy supported by favorable government regulations for reducing carbon emissions are propelling the demand for LNG, driving the C-type LNG carrier market. The rise in energy demand is propelling the need for LNG across Asia Pacific countries. The traditional markets, such as Japan and South Korea, have held their leading position in terms of LNG consumption, as their domestic markets have changed under the influence of liberalization policies, which have led to different opportunities for the transportation of LNG.
Owing to the rising need for LNG transportation, many industry players are looking forward to building the next generation of cargo containment systems. The surge in long-term contracts in 2021, owing to a rise in trading activities after a decrease experienced in 2020. For instance, in 2021, China-based Sinopec Corp signed the most long-term LNG contracts, gaining 5 million tonnes per annum (MTPA) of imported LNG; Vitol Group signed the second-highest number of long-term LNG contracts, gaining 4.3 mtpa LNG; and Royal Dutch Shell signed the third highest, gaining 4.0 mtpa LNG. As per the Wood Mackenzie report, in the next decade, around two-thirds of expected growth in LNG demand will come from China, India, Pakistan, and Bangladesh, which are the world’s fastest-growing markets for LNG imports. Alongside China, India is also expected to dominate Asia’s LNG regasification capacity in the coming years, accounting for around 60% of the region’s total capacity between 2020 and 2024. Therefore, the significant demand for LNG is expected to increase the transportation activities of LNG, which is likely to drive the need for LNG carriers in the coming years. However, as per the IEA report, by 2025, gas prices are projected to increase, which may hinder the demand for LNG and hamper the market growth.
|Market Size Value in||US$ 3,920.84 Million in 2021|
|Market Size Value by||US$ 6,469.02 Million by 2028|
|Growth rate||CAGR of 7.54% from 2022 to 2028|
|No. of Pages||192|
|No. of Tables||61|
|No. of Charts & Figures||74|
|Historical data available||Yes|
|Segments covered||Product Type, Application, and Geography|
|Regional scope||North America, Europe, Asia Pacific, Middle East & Africa, South & Central America|
|Country scope||US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Free Sample Copy Available|
The COVID-19 pandemic negatively impacted the global C-type LNG carrier market. In North America, the COVID-19 pandemic impacted LNG investment and near- and longer-term fundamentals. For example, in the US market, there has been surged in importance over the past decade because of the shale boom. COVID-19 has delayed construction and liquefaction projects, impacting the production of LNG carriers, and LNG projects could be an attractive option for cutting costs. The growing demand for c-type LNG carriers from the rapidly expanding economies of Asia Pacific is expected to be a key driving force in producing momentum for a worldwide economic recovery from the effects of the COVID-19 pandemic. Along with China, India is expected to lead Asia's LNG regasification capacity additions in the next few years, accounting for 60.0% of the region's total between 2020 and 2024. Amid the COVID-19 pandemic, changes in the LNG carrier market will be significant for LNG importing countries as they may have to rely on large portfolio players. Governments may have to step in more directly if they need volumes to grow beyond 2025. Japan's commitment of US$ 10 billion toward LNG infrastructure is the first step in this direction. An average liquefaction train costs nearly US$ 8 billion (4 million tons at US$ 2,000/ton). All these initiatives are expected to fuel the c-type LNG carrier market growth post-pandemic.
Market players are building new LNG carriers due to the rising demand for LNG. For instance, in January 2022, TGE Marine proudly announced the completion of the tank-building phase for two large LNG cargo tanks at Jiangnan Shipyard. Also, in August 2022, NYK Line announced a long-term time-charter contract with Qatar Energy for seven new LNG carriers. The companies also executed shipbuilding contracts for the seven 174,000 m3 LNG carriers with Hyundai Heavy Industries Co., Ltd. Thus, the rise in new shipbuilding contracts among the leading players is driving the C-type LNG carrier market.
Furthermore, in July 2022, Gaztransport & Technigaz (GTT) received a tank design contract from Samsung Heavy Industries (SHI), its South Korean partner, for designing a series of new LNG carriers. As per the contract, the Gaztransport & Technigaz (GTT) company will design the tank of 14 new LNGCs. Two of the ships are for a shipowner from Asia, while the other 12 are for an American shipowner. Similarly, in November 2021, Jiangsu Yangzijiang Shipbuilding launched the LNG-powered MSC Washington, which features a 12,300-cbm type C bi-lobe LNG tank. Thus, such contracts for the manufacturing of LNG carriers and expansion of new fleets are bolstering the C-type LNG carrier market growth.
The C-type LNG carrier market is segmented based on product type and application. Based on product type, the C-type LNG carrier market is segmented into cylindrical, bi-lobe, and tri-lobe. The cylindrical segment held the largest market share in 2021, as it holds flexibility and strength over the temperature range of 50ºC–180ºC.
Players operating in the C-type LNG carrier market are mainly focused on the development of advanced and efficient products.
The analysis of the C-type LNG carrier market is based on product type and application. Based on product type, the market is segmented into cylindrical, bi-lobe, and tri-lobe. Based on application, the market is segmented into marine, oil and gas, petrochemical, and others.
The C-type LNG carrier market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America. In 2021, Asia Pacific led the market with a substantial revenue share, followed by Europe and North America. The C-type LNG carrier market analysis helps to understand the upcoming trends, new technologies, and macro and micro factors that influence the market growth.
The key players profiled in the C-type LNG carrier market study include DSME Co. Ltd; Hyundai Heavy Industries Co. Ltd; Mitsubishi Heavy Industries Ltd; TGE Marine AG; Gas Entec; Komarine Co.; Torgy LNG AS; China Shipbuilding Trading Co., Ltd.; Knutsen OAS Shipping; and HYUNDAI SAMHO HEAVY INDUSTRIES CO., LTD. The C-type LNG carrier market report provides detailed market insights which help the key players to strategize their growth.