The Liquefied natural gas (LNG) storage tank market is anticipated to grow significantly throughout the forecast period. Most of the world's population lives far from gas fields, making pipelines an unrealistic or expensive means of transportation. To overcome this problem, gas can be cooled to make a liquid, thereby reducing its volume and making it easier to store and ship. The change of state of natural gas reduces its volume by 600 times. Thus, LNG storage tanks are used for the safe storage and transport of gas. Properties such as versatility, cost efficiency, and low carbon footprint have made LNG usable for various industrial and other applications. Furthermore, the demand for LNG storage systems depends on the extensive use of natural gas by various industries, such as paper, metal, chemicals, petroleum, stone, clay, glass, and clothing. Major players in the industry are focused on developing cost effective and safe LNG storage tanks.
An LNG storage tank is a specialized storage tank used for safe storage of liquefied natural gas. It is found underground, above ground, or in LNG carriers. The common LNG storage tanks has the ability to store LNG at the very low temperature of around -162 °C (-260 °F). Typical LNG storage tanks have double containers, in which the inner tank contains LNG and the outer container contains insulation materials. LNG storage tanks can be customized into various sizes according to usage and requirements.
COVID-19 Impact analysis
- The COVID-19 pandemic halted production at various end users in the LNG storage tank industry, resulting in a global lockdown. This has hampered the growth of the market in the last few months and is likely to continue through 202.
- COVID-19 has already affected the sales of LNG storage tank since second quarter of 2020, due to the steep decline in demand of LNG and is anticipated to cause a negative impact on the market growth in the first half of 2022.
- The major demand for LNG storage tank was previously noticed from giant manufacturing countries including the U.S., India, Germany, Italy, the UK, and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for solenoid valves.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. LNG storage tank manufacturers can afford declining sales only for a few months, after which the players have to modify their investment strategies. For instance, various players in the market halted their production activities for several weeks to reduce the expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis.
- With the increasing number of vaccinations and leniency in restrictions laid by the government, the demand for LNG has shown signs of recovery, which is a positive factor for the LNG storage tank market.
Top Impacting Factors
Rise in global fuel demands, surge in population, and growth of industries have boosted the demand for LNG. LNG is expected to be used extensively in various industrial applications. For safe transportation of gas, its volume is reduced by change in its state. These factors have increased the demand for LNG storage tanks. Factors such as availability of plenty of natural gas reserves, efficiency, and low carbon footprint have further increased the use of LNG, thereby creating a demand for LNG storage tanks. Furthermore, the use of LNG in vehicles is increasing. However, LNG is a fossil fuel and emits CO2, which adds to the effect of global warming and is a restraining factor in the growth of the market. Many governments’ initiatives are being implemented across the globe to boost the use of LNG. For instance, in November 2020, the Ministry of Petroleum and Natural Gas of India, laid the foundation stone for the first 50 LNG fuelling stations, spread across the golden quadrilateral and National Highways. Such initiatives provide lucrative opportunities for the LNG storage tank market.
- In September 2019, Wärtsilä received a contract for the supply of its unique and patent-pending LNG fuel storage and supply system for use in two new trailing suction hopper dredgers (TSHDs). The ships are being built by Keppel Offshore & Marine for Van Oord, the Dutch marine contractor.
- In July 2019, IHI Corporation was awarded a contract for EPC (Engineering, Procurement, and Construction) by India-based Afcons Infrastructure Ltd., for two above-ground LNG tanks. The tank is to be completed in 2022 and will have a storage capacity of 200,000 kiloliters per unit, which is the largest capacity in India.
Key Benefits of the Report
- This study presents the analytical depiction of the LNG storage tank industry along with the current trends and future estimations to determine the future investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the LNG storage tank market share.
- A quantitative analysis highlights the LNG storage tank market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed LNG storage tank market analysis based on competitive intensity and how the competition will take shape in coming years.
LNG Storage Tank Market Report Highlights
By Product Type
By Material Type
By End-user Industry
By Business Type