The LNG market size is expected to post a CAGR close to 6 per cent during the period 2019-2023. The increase in LNG production is one of the major reasons for the growth of the LNG market, according to the latest market research report by Technavio.
Natural gas is one of the fastest growing fossil fuels due to the increase in the global supply of coalbed methane, shale gas, and tight gas. Hence, the global oil and gas industry is expected to witness a significant increase in unconventional oil and gas resources. The increase in natural gas production will increase the production of LNG, which in turn, will boost the growth of the global LNG market during the forecast period.
Technavio states that the growing demand for LNG bunkering will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyses other important trends and market drivers that will affect market growth over 2019-2023.
The demand for more environmentally sustainable marine fuels such as LNG is increasing due to the need to cut emissions arising from shipping activities. This has encouraged ports to develop LNG bunkering facilities. Significant developments have been made to make LNG bunkering more efficient and convenient. For instance, the universal transfer system (UTS) was developed in October 2017 to allow the transfer of LNG from an LNG carrier to bunker tanks onshore.
A senior analyst at Technavio said: “The UTS substantially reduces the capital expenditure incurred on bunkering facilities and does not need any heavy infrastructure. It also allows the transfer of LNG at inaccessible locations and reduces the impact of infrastructure establishment on the environment and can be retracted when not in use. Such developments in LNG bunkering along with the implementation of stringent emission regulations will further boost the demand for LNG as a marine fuel.”
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