Global LNG Storage Tank Market - 2020-2027
The liquefied natural gas (LNG) industry is enduring low prices and oversupply. Even ere the COVID-19 pandemic, the LNG market was set for excess new projects continued to increase capacity well beyond steady demand growth. The gas demand is reduced due to pandemics, which adds to excess supply and creates market volatility. However, LNG's long-term forecast is more favorable than other fossil fuels because of its approximately lower cost and lower emissions from production and combustion. But to find a real competitive benefit amid a volatile market, the LNG industry must move beyond what were once winning strategies. LNG players should focus on five areas: capital efficiency, supply-chain optimization, downstream market development, decarbonization, and digital and advanced analytics that will help to develop the market of the LNG market. LNG can find opportunities and could boost the unpredictable market growth in the forecast period.
The global LNG Storage Tank market is estimated to reach US$ XX billion by 2027 from the recorded market size of worth US$ XX billion in 2018, growing at a CAGR of XX% during the forecast period.
According to WHO, around 4.2 million deaths a year occur due to increased air pollution, with more dying in Asia. Liquid fuels and coal-fired power for road and marine transport produce major air pollutants: particulate matter, sulfur dioxide (SOx), and nitrogen oxides (NOx). The shift to gas can significantly reduce air pollution and gas consumption that produces negligible NOx and SOx. In addition, it reduces NOx emissions by roughly 50%, while shifting from oil to gas in the transport sector reduces NOx emissions by approximately 80%. Moreover, increasing demand from energy, steel, and power end-use industries is expected to drive the LNG storage tank market's growth. In addition, the growth of these industries is expected further to drive the market's development in the forecast period due to driving factors like a rise in LNG trade across the globe and increased floating storage and regasification units.
However, a sustained period of lower price oil has reduced gas prices directly through oil-indexed contracts and indirectly by reducing the financial incentive for consumers of oil-based fuels to switch to LNG. Moreover, high construction and installation cost is expected to limit the growth due to growing demand of LNG requires manufacturers to make significant investments in new downstream infrastructure, including import terminals, pipelines, and power plants.
By type, the market is segmented into self-supportive, non-self-supportive. The market is segmented into steel, 9% nickel steel, aluminum alloy, and others by the material.
A self-supporting segment will drive the LNG storage tank market during the forecast period. This segment's market growth is attributed to growing LNG trade and an increase in LNG liquefaction and regasification facilities and is expected to boost the demand in the forecast period. Moreover, steel is expected to hold the largest market share in the forecast period due to resistance to corrosion, durability, excellent toughness, and low thermal conductivity at cryogenic temperatures, which will boost the steel demand. Furthermore, steel is used for applications requiring refrigeration or creating low-temperature conditions for the storage of liquefied natural gas.
APAC is holding the largest share in the LNG storage tank market due to increased usage of various end-use industries like power, steel, and energy. Moreover, an increase in the LNG bunkering facilities and an increase in LNG regasification will boost this region's market forecast period. In addition, the gas cost over coal narrows and the firming and emissions benefits of gas over coal become clearer. Increasing consumption in Asia's gas energy to 20% is equivalent to more than 400 million tonnes of LNG to annual gas demand, doubling the LNG market size.
Furthermore, in China, gas could replace oil in the transport sector that accounts for more than 10% of current gas demand, and it is the fastest-growing demand segment globally, and rest of Asia use gas for transport as widely as China does, it would add annual gas demand equivalent to 40 million LNG tonnes.
However, with limited gas-fired power generation capacity across many Asian countries, coal's transition to gas will take time. Growing load factors on gas-fired generation can happen almost immediately, but it would only close about 10% of the gap. Completing the remaining 90% requires investment in new gas-fired power generation capacity, which may take about 3-4 years to permit and construct.
Simultaneously, in North America, LNG exports have built low-cost US gas to reach Asia's LNG importing markets, and consecutive waves of new LNG supply capacity from Australia, Russia, and the United States have pushed the market into persistent oversupply. In this competitive market, gas importers can change lower gas prices even relative to low oil prices. LNG exporters have dropped cargo as the spot price in Asian and European markets no longer covers the cash cost of US gas supply, liquefaction, and shipping. Despite these low prices, many US LNG shipments are continuing because of long-term contractual commitments and inflexible supply chains.
The LNG storage tank market is fragmented with the presence of regional and global players. The competitive outline lies with the increase in the regional company and growing investment in upstream application. Linde plc, McDermott International Inc., Wartsila, IHI Corporation, CIMC ENRIC, Chart Industries, ISISAN ISI SAN. VE TIC.A. S, Cryolor SA, Corban Energy Group, and Trans Tech Energy LLC are the major player in the LNG storage tank market. The major players are adopting many growth strategies like product launches, acquisitions, and collaborations, contributing to growing the LNG storage tank market globally.
Corban Energy Group produces the most cost-efficient, reliable, and technically advanced LNG equipment in the marketplace. Customers should have the most optimized clarifications to best suit their requirements with custom choices, high-quality construction, and comprehensive services. As tank manufacturers, they provide a variety of solutions and offer expertise in the industry. LNG equipment, like storage tanks, ISO tank containers, and specialized gas transportation products and services, is tested to meet all safety standards.
Furthermore, Corban provides customized choices for its LNG equipment and systems to meet each of its customers' unique needs with full design and build services. By evaluating the customer's operational requirements, Corban can guide and provide a customized solution for all LNG equipment that produces the most cost-efficient operation. In addition, Corban works with the world's leaders in offering various LNG equipment and products by ensuring quality products and service while working with customers to provide a turnkey solution from their proposed requests.