The global Small Scale LNG Market will see a capital expenditure (CAPEX) of $5,539 million in 2019, according to a new report by Visiongain.

Small Scale LNG is used to supply small or isolated demand centres not connected to pipeline infrastructure, small scale LNG infrastructure is now increasingly deployed to cater to the growing demand for LNG as a transport fuel.

Small scale liquefaction and regasification infrastructure are ideally placed to assist with the development of stranded assets, the supply of remote residential and commercial demand centres but also the provision of LNG as a fuel.

LNG adoption is rapidly increasing due to the fact that natural gas is a competitive and environment-friendly option when compared to other fossil fuel sources. Small-scale LNG import terminals are primarily designed to serve the fuel requirements of a particular industry such as power generation and/or functions as a hub for ship and truck fuelling. The risks associated with the development of large LNG facilities are significantly high when compared to small-scale terminals.

Small-scale LNG import terminals are the most economical option for such nations which have just started adopting LNG as a fuel in their respective industries. Several small nations are importing or planning to import LNG in small quantities specifically to cater to the feeling requirements of the power generation industry.

Several nations such as the Dominican Republic have just started importing LNG in small quantities to fulfil some of their industrial requirements. Such countries do not prefer importing large shipments of LNG as the demand for natural gas is still in the nascent stages in these nations.

The global market for small scale LNG is driven by high levels of spending in established and emerging markets. An important share of future capital expenditure will be driven by the greater deployment of LNG as a fuel, and growing investment in small scale LNG carriers.

Visiongain’s global Small Scale Liquefied Natural Gas Market report focuses on the developments in the market, across six different nations: China, Indonesia, Japan, U.S, Europe and Rest of the World.

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27th August 2019