The global LNG market will be worth nearly US$21Bn by 2025, its value increasing at a compound annual growth rate of 12.7%, a new study suggested.
Research and Markets said growth is being driven by expanding gas pipeline infrastructure and growing downstream demand for natural gas. Falling LNG prices and favourable government rules and regulations such as tax schemes support final investment decisions, it said.
By volume, global LNG demand topped 265 million tonnes last year. Research and Markets forecasts compound annual growth rates of 6.5% to 2025.
The study highlights growing demand for LNG for power generation, which accounted for 46% of volumes last year. Research and Markets expects power generation demand to grow more than 6.9% a year to 2025 as plants move away from naphtha-based feedstock.
Transport dominated demand last year. The study predicts that the switch from conventional fuels to LNG will generate more than US$3.6Bn in revenue by 2025.
Research and Markets expects demand growth to be concentrated in Africa and the Asia-Pacific region, set against “moderate” growth in Europe, where LNG imports face strong competition from piped gas from Russia and Norway.