Top 3 Trends Impacting the Small-Scale Liquefaction Industry Until 2020, According to Technavio
Technavio’s latest report on the global
small-scale liquefaction industry provides an analysis on
the most important trends expected to impact the market outlook from
2016-2020. Technavio
defines an emerging trend as a factor that has the potential to
significantly impact the market and contribute to its growth or decline.
The global small-scale liquefaction industry is in its nascent stage and
is expected to grow tremendously in China, the US, and Scandinavian
countries such as Norway, Sweden, and Finland. The adoption of the
technology is expected to be slow in other regions of the world.
According to Sayani Roy, a lead analyst at Technavio for research on oil
and gas, “China leads the world in the adoption of small-scale
liquefied natural gas as a fuel and accounts for approximately 75% of
the global small-scale liquefaction capacity. The country is expected to
retain its dominance during the forecast period. The primary drivers for
the rapid adoption of small-scale liquefied natural gas in the country
are low gas prices and the need to curb pollution levels, especially in
the urban areas.”
Request a sample report: http://www.technavio.com/request-a-sample?report=52614
Technavio’s sample reports are free of charge and contain multiple
sections of the report including the market size and forecast, drivers,
challenges, trends, and more.
The top three emerging trends driving the global small-scale
liquefaction industry according to Technavio energy
research analysts are:
-
On and off competition for SSLNG from oil prices
-
Monetization of marginal or small gas fields
-
R&D in gas-fueled and dual-fuel engines to enable expansion of SSLNG
in multiple sectors
On and off competition for small-scale liquefied natural gas (SSLNG)
from oil prices
Fossil fuels accounted for approximately 86% of the total energy supply
in 2014. Oil took the largest share in total energy supply in 2014 with
approximately 33% share. On the other hand, natural gas accounted for
approximately 23% of the total energy supply. During 2015-2035, oil is
expected to grow at a rate of 0.9% per annum while gas is forecasted to
show a 1.8% growth rate (per annum).
For diesel, energy price per MBTU is approximately USD 15.59
(considering crude oil price at USD 79.90/bbl). For gas, energy price
per MBTU is approximately USD 5.69 (considering the natural gas price at
USD 5.66/MBTU). As can be seen from the calculations, energy from gas is
proving to be much cheaper than from diesel, which is widely used in the
power and transportation industries as fuel.
Oil and gas price differential may act as a driver or a barrier in
different years. The eventual impact of this can be seen in the
long-term future. During the forecast period, till 2018, the oil prices
are expected to stay low. As a result, the SSLNG industry is expected to
see some slackening of interest. Post-2018, with expected increase in
oil prices, the SSLNG industry should witness robust growth.
Monetization of marginal or small gas fields
Small or marginal gas fields have always been a cause of concern for
many countries. Such gas fields do not justify the cost associated with
exploration and production. However, with SSLNG gaining popularity, the
prospect of exploring and recovering gas from marginal and small fields
becomes more feasible than ever. The capital investment required for
setting up a value chain for SSLNG is much less as compared to a
large-scale LNG plant. This is due to the modular and small size of
liquefaction and regasification units.
“Many countries such as India, Nigeria, and China have been struggling
with the issue of monetizing the small gas fields. In 2016, India
decided to auction 68 marginal fields. Nigeria has listed 30 marginal
fields, out of which nine have been monetized. The prospect of SSLNG
using gas from small or marginal gas fields is expected to gain momentum
during the forecast period,” says Sayani.
R&D in gas-fueled and dual-fuel engines to enable expansion of SSLNG
in multiple sectors
Engine manufacturers have been seeing a lot of interest in gas-fueled
and dual-fuel engine technology from various sectors. These interested
parties include owners and operators of ships, buses, heavy trucks,
locomotives, and drilling equipment. The engine industry is evolving
rapidly to produce engines according to customer needs.
A lot of engine technologies are being put in the testing phase.
Multiple multinational companies and research organizations have
reported the beginning or completion of testing phases of engines for
various sectors. GAINN, a research and innovation services provider,
runs a program for six member states in Europe that takes up engineering
studies on ship retrofitting, port LNG infrastructure, and bunkering
stations.
Browse Related Reports:
Do you need a report on a market in a specific geographical cluster
or country but can’t find what you’re looking for? Don’t worry,
Technavio also takes client requests. Please contact enquiry@technavio.com
with your requirements and our analysts will be happy to create a
customized report just for you.
About Technavio
Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.
If you are interested in more information, please contact our media team
at media@technavio.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161012005040/en/
Copyright Business Wire 2016
