LNG Storage Tank Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global LNG Storage Tank Market is segmented By Type (Self-Supportive, Non-Self Supportive), By Materials (Steel, 9% Nickel Steel, Aluminum Alloy, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030 

LNG Storage Tank Market Size

Global LNG Storage Tank Market reached USD 4.5 billion in 2022 and is expected to reach USD 6.7 billion by 2030, growing with a CAGR of 5.5% during the forecast period 2023-2030. The global liquefied natural gas (LNG) storage tank market has witnessed significant upward market trends in recent years, driven by the increasing demand for LNG as a cleaner energy source. Government initiatives and policies play a crucial role in shaping the growth of the LNG storage tank market. 

Many governments globally are promoting the use of cleaner energy sources, including LNG, to reduce carbon emissions. For example, Japan aims to increase the share of natural gas in its energy mix to 27% by 2030, and South Korea plans to phase out coal-fired power plants in favor of cleaner energy sources. Such initiatives create a favorable environment for the development of LNG infrastructure, including storage tanks, to support the increasing adoption of LNG.

Asia-Pacific is among the growing regions in the global LNG storage tank market, covering more than 1/4th of the market share due to dominance in LNG imports, shift towards renewable energy, government initiatives and policies. The region has witnessed a surge in market opportunities and participation in LNG storage tank due to rapid infrastructure development in countries such as China and India. 

Further, steel segment is the fastest-growing segment the Global LNG Storage Tank Market, close to reaching almost half of the market share in the material segment. With rising global LNG trade and the need for additional storage capacity, the demand for steel-based LNG storage tanks is expected to grow significantly.

LNG Storage Tank Market Scope

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LNG Storage Tank Market Dynamics

Growing Demand for LNG

The growing need for natural gas is one of the main factors driving the LNG storage tank market. Due to its reduced greenhouse gas emissions when compared to other fossil fuels, natural gas is gaining popularity as a fuel source. It is also widely available and reasonably priced. More adaptable and economical transportation and storage alternatives are required as the demand for natural gas rises. LNG storage tank provides a solution to the issue since it makes it possible to transport and store natural gas in a more controllable and condensed form. 

In order to lessen their dependency on coal and oil, national governments are turning more and more to cleaner fuels. For a sizable portion of the world's population, LNG also serves as a significant supply of clean cooking fuel. Out of most other types of gaseous fuels, it is the most convenient to transport. 

For the transmission of conventional natural gas, massive pipelines are needed and their construction can take years. Comparable pressurized tankers are needed to transport compressed natural gas (CNG). Owing to the enormous expansion of global logistics and maritime transportation, demand is rising globally. The global LNG storage tank industry is expanding as a result of the rising LNG demand on a global scale.

Increasing Use in Power Generation

The global LNG (liquefied natural gas) storage tank market has witnessed significant growth in recent years, driven by a combination of factors that have reshaped the energy landscape. LNG storage tanks play a crucial role in the storage and transportation of LNG, enabling efficient utilization of natural gas resources. 

The increasing use of LNG in power generation is a key driver for the global LNG storage tank market. LNG-fired power plants provide a more flexible and cleaner alternative to traditional coal-fired plants. 

According to the International Gas Union (IGU), LNG-fired power generation capacity increased by 6% in 2020. Governments are investing in LNG power plants to diversify their energy mix and reduce reliance on coal. The increased demand for LNG in power generation drives the need for additional LNG storage tanks to ensure a reliable supply of LNG to power plants. 

As countries prioritize cleaner energy solutions and invest in LNG infrastructure, the demand for LNG storage tanks is expected to continue growing, providing significant opportunities for market players in the industry.

Stringent Environmental Regulations Coupled with Limited Infrastructure and Distribution Networks

Stringent safety and environmental regulations pose significant challenges for the global LNG storage tank market. Due to the flammable nature of LNG, strict regulations are imposed on the design, construction, and operation of LNG storage tanks to ensure safety and prevent accidents. Such regulations increase compliance costs and require continuous monitoring and maintenance, further impacting the overall project cost. Government agencies such as the U.S. Federal Energy Regulatory Commission (FERC) and the European Commission have implemented stringent safety standards and environmental regulations to mitigate risks associated with LNG storage. The regulations restrain market growth, particularly for smaller players with limited resources to meet regulatory requirements.

The lack of adequate infrastructure and distribution networks is another significant restraint for the global LNG storage tank market. LNG requires specialized infrastructure for transportation and distribution, including liquefaction terminals, regasification terminals, and pipeline networks. However, developing such infrastructure requires significant investments and long-term planning. 

According to data from the International Energy Agency (IEA), the global LNG infrastructure investment needed to meet the demand growth is estimated to be around USD 1.2 trillion by 2040. Insufficient infrastructure limits the ability to store and distribute LNG, particularly in regions with limited access to established LNG markets, thereby hampering market growth.

LNG Storage Tank Market Segment Analysis

The Global LNG Storage Tank Market is segmented based on type, material and region.

Excellent Mechanical Properties, Corrosion Resistance and Ability to Withstand Low Temperatures

The development of LNG infrastructure, including storage facilities, is crucial to support the expanding LNG trade. Steel has emerged as a preferred material choice for LNG storage tanks due to its excellent mechanical properties, corrosion resistance, and ability to withstand low temperatures. 

Governments worldwide are investing in the expansion of LNG import and export terminals, LNG bunkering facilities, and LNG liquefaction plants to meet the rising demand. For instance, the U.S. Federal Energy Regulatory Commission (FERC) reported a significant increase in LNG infrastructure projects in the United States post-2020, including the construction of storage tanks.

Steel offers inherent safety and durability features, making it an ideal material for LNG storage tanks. The high strength and structural integrity of steel ensure the safe containment of LNG and protect against potential hazards. Moreover, steel exhibits excellent resistance to extreme temperatures, seismic activity, and environmental conditions, providing long-term reliability and durability for LNG storage tanks. 

Various government bodies and regulatory agencies globally have recognized and mandated these qualities to ensure LNG’s safe storage and transportation. For example, the U.S. Department of Transportation (DOT) has established stringent regulations, such as the Pipeline and Hazardous Materials Safety Administration (PHMSA) standards, requiring high-quality steel in LNG storage tanks and associated infrastructure.

Source: DataM Intelligence Analysis (2023)

Global LNG Storage Tank Market Geographical Share

Increasing Energy Demands, Infrastructure Development, and Government Initiatives in Asia-Pacific

The Asia-Pacific region has emerged as a key player in the global liquefied natural gas (LNG) storage tank market, driven by several factors such as increasing energy demands, infrastructure development, and government initiatives. 

LNG storage tanks are crucial for storing and distributing LNG, which has gained popularity as a cleaner and more efficient energy source. The Asia-Pacific region has been experiencing significant economic growth, resulting in a surge in energy demands. Governments in the region are focusing on diversifying their energy mix and reducing reliance on traditional fossil fuels.

Moreover, Governments across the Asia-Pacific region are investing heavily in infrastructure development, including constructing LNG terminals and storage facilities. For instance, in 2020, the Indian government launched the National Infrastructure Pipeline (NIP) with an investment of over USD 1.4 trillion to enhance the country's infrastructure, including LNG storage and regasification terminals. 

Similarly, China has been actively expanding its LNG storage tank capacity to meet the growing demand for natural gas. These infrastructure development initiatives propel the growth of the LNG storage tank market in Asia-Pacific.

Source: DataM Intelligence Analysis (2023)

LNG Storage Tank Market Companies 

The major global players include Corban Energy Group, Linde plc, McDermott International Inc., Wartsila, IHI Corporation, CIMC ENRIC, Chart Industries, ISISAN ISI SAN. VE TİC.A. Ş, Cryolor SA and Trans Tech Energy LLC.

COVID-19 Impact on LNG Storage Tank Market

COVID Impact

The outbreak of the COVID-19 pandemic in late 2019 had far-reaching implications for various industries worldwide. The molybdenum market, a critical component of many industrial sectors, was not immune to the effects of the global health crisis. The COVID-19 pandemic led to a significant decline in global economic activity, reducing demand for molybdenum across various sectors. Lockdown measures, travel restrictions, and temporary closures of industries disrupted supply chains, leading to production delays and decreased consumption.

According to data from the International Monetary Fund (IMF), the global economy contracted by 3.5% in 2020, reflecting the severe impact of the pandemic. Consequently, industries such as automotive, construction, and oil and gas, which are significant consumers of molybdenum, witnessed a decline in demand due to reduced activities and investments. 

However, the industry's recovery trajectory will continue to depend on the containment of the virus, vaccination campaigns, and the pace of global economic rebound. By closely monitoring these factors and adapting to the evolving market dynamics, participants in the molybdenum market can navigate the challenges posed by the pandemic and seize emerging opportunities.

Russia- Ukraine War Impact 

The Russia-Ukraine conflict has had far-reaching consequences across various sectors, and the global LNG (liquefied natural gas) storage tank market is no exception. As tensions escalated between Russia and Ukraine, the energy sector faced significant disruptions due to geopolitical uncertainties and supply chain disruptions. The Russia-Ukraine war has disrupted the natural gas supply chains, affecting the global LNG storage tank market. Russia is a major exporter of natural gas to Europe, with Ukraine serving as a crucial transit country.

According to data from Eurostat, in 2020, Russia accounted for 39% of the European Union's natural gas imports. The conflict led to concerns about the reliability and stability of gas supplies, leading to increased demand for LNG storage tanks to secure energy reserves. 

Governments and energy companies sought to diversify their natural gas sources and invest in LNG storage infrastructure to mitigate potential supply disruptions. s geopolitical tensions continue, stakeholders in the industry will need to navigate the evolving landscape and adapt to changing market dynamics to ensure the stability and resilience of the LNG storage sector.

Key Developments

• On January 13, 2023, China Huanqiu Contracting & Engineering Co.Ltd finished the construction of two LNG onshore storage tanks with 220,000m3 for BGG Tianjin Nangang LNG terminal.
• On September 9, 2022, China National Offshore Oil Corporation announced the completion of roofs for three LNG storage tanks located in Yancheng City, China.
• On March 15 2022, Sinopec announced the construction of a 270,000m3 LNG storage tank, which is expected to be the largest LNG storage tank in the world

Why Purchase the Report?

• To visualize the Global LNG Storage Tank Market segmentation based on type, material and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous LNG storage tank market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global LNG Storage Tank Market Report Would Provide Approximately 53 Tables, 47 Figures And 187 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies