Catching Cold or Catching Fire? Current state and growth prospects for small-scale LNG

The small-scale LNG market is rapidly growing on both the supply and demand side. Forecasts of growth to 2030 of up to 100 mt are widely shared, and there is a significant chance growth could far exceed this, with some forecasts for key sectors leading to a much higher overall demand.

SSLNG production and supply

Current SSLNG liquefaction capacity is estimated at 28mtpa. Supply infrastructure in terms of refuelling facilities for road and marine applications is becoming well established in China, and parts of Europe and North America, as well as some other markets around the world.

We expect small-scale liquefaction capacity to increase rapidly in coming years, particularly in markets where there is existing gas infrastructure and demand for LNG as a liquid fuel, or in areas where small-scale production provides an effective means of developing smaller gas resources. Small-scale liquefaction will face competition in LNG supplies from large-scale facilities, particularly regasification terminals. In addition, wider issues affecting the gas and LNG retail market in terms of the growth of LNG or alternative energy supplies from renewables or electric vehicles, will have a corresponding impact on small-scale liquefaction.