March 22, 2023 [gasworld] – The global liquefied natural gas (LNG) storage tanks market is projected to grow to $20.8bn by 2027.
LNG is seeing a boom in demand, driven by the transition to a lower-carbon economic system and heightened need for energy security following Russia’s invasion of Ukraine. In 2022, the global LNG storage tanks market was estimated to be $14.5bn.
LNG storage tanks, used to store LNG at cryogenic temperatures, are essential for the safe and efficient transport and storage of LNG. Both single containment and full containment vessels are used globally.
Over the last few years, the global trade of LNG has steadily increased, setting a record of 516bcm in 2021.
The worldwide increase in LNG trade has been caused by an increase in the number of liquefaction plants, and sudden increase in the number of plants among European countries, such as Germany, which have been rapidly brought online in direct response to the recent war and sanctions against Russia.
The increase in LNG trade worldwide is because of higher production at new liquefaction plants in Australia, the US, and Russia.
LNG is a clean source of energy; and with increasing environmental regulations, globally, the use of natural gas and LNG as marine fuels is increasing. An increase in the global liquefaction capacity and LNG import has enabled robust growth in LNG consumption.
Global LNG regasification is increasing every year. Regasification is the process of converting liquid LNG at -259°F back to a natural gas at the atmospheric temperature.
Currently, Japan has the world’s largest LNG regasification capacity at 211.4 million MT per year.
Two new regasification terminals were added in the new markets of Bangladesh, and Panama, which started receiving LNG supply in 2018. This, in turn, is responsible for the increase in demand for LNG storage tanks.
Global regasification is increasing every year. A number of key industries are driving the increasing need for gas storage, such as metal processing (especially the steel industry). LNG is also being used by heavy transport industries, such as trucking and in large ships.
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