Liquefied natural gas (LNG) is natural gas that has been cooled to liquid form for ease and safety of non-pressurized transportation. LNG takes up about 1/600th the volume of natural gas in the gaseous state. It is odorless, colorless, non-toxic and non-corrosive. LNG is transported and distributed around the world on specially built tankers and via pipelines. It is used to produce cleaner burning energy and to heat homes and power industries globally.
The liquefied natural gas market is estimated to be valued at USD 155.41 Bn in 2025 and is expected to reach USD 289.79 Bn by 2032, growing at a compound annual growth rate (CAGR) of 9.3% from 2025 to 2032.
Key Takeaways
Key players: Key players operating in the Liquefied Natural Gas market are Shell, Chevron, Petrobas, Total, BG etc. These players are focusing on capacity expansions and global sourcing to leverage opportunities arising from the increasing demand.
Growing demand: Rising global Liquefied Natural Gas Market Demand along with increased focus on cleaner sources of fuel have propelled demand for LNG. Implementation of stringent environmental norms are further encouraging industries and commercial sectors to adopt LNG.
Global expansion: Major LNG players are investing heavily in export facilities and infrastructure to bridge demand-supply gaps across regions. Countries like China, India and South Korea have emerged as major importers driving significant capital investments in the global LNG value chain.
Market key trends
One of the key trends in the LNG market is the adoption of floating LNG facilities. With rapid expansion in offshore natural gas production, floating LNG facilities provide an economically viable midstream solution. Major projects involving floating LNG facilities are currently underway globally. Advances in liquefaction technologies are also supporting capacity additions and optimizing project economics. Introduction of modular, standardized and smaller scale liquefaction systems is expected to provide significant impetus to emerging and smaller LNG markets going forward.
Porter's Analysis
Threat of new entrants: Natural gas can be transported cross borders and companies need huge capital investments to enter the liquefaction process.
Bargaining power of buyers: National oil companies and large utilities have significant bargaining power due to their large orders and ability to source gas from multiple suppliers.
Bargaining power of suppliers: Major gas producing companies have bargaining power due to limited number of suppliers and long term supply contracts.
Threat of new substitutes: Renewable energy is emerging as potential substitute for gas in power generation and transportation but gas is currently irreplaceable in some applications.
Competitive rivalry: Large integrated oil and gas majors compete aggressively in liquefaction and transportation to expand market share in key regions.
The geographical region where the liquefied natural gas market is currently concentrated in terms of value is Asia Pacific. Countries such as China, India, Japan and South Korea rely heavily on imported LNG to meet growing energy demand. The region accounted for over 60% of the global LNG trade in 2021.
The fastest growing region for the liquefied natural gas market during the forecast period of 2024 to 2031 is expected to be Africa. Several LNG export projects are under construction or planned in countries like Mozambique, Nigeria and Cameroon. The growing worldwide demand coupled with abundant gas reserves make Africa an attractive market for LNG suppliers and investors over the coming years.
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