C-Type LNG Carrier Market Research Report and Outlook by 2028

The market for C-type LNG carriers is projected to reach a valuation of approximately US$ 6,469.02 million by 2028, up from US$ 3,920.84 million in 2021, reflecting a compound annual growth rate (CAGR) of 7.5% from 2022 to 2028.

Several factors are driving the expansion of the C-Type LNG carrier market, notably the rising demand for natural gas across residential, industrial, and commercial sectors, particularly in emerging economies. Furthermore, the application of LNG carriers is broadening to include various sectors such as defense and transportation, which is further fueling market growth.

The increasing demand for LNG has led to substantial investments in infrastructure, production capabilities, and global distribution networks, resulting in a heightened need for LNG shipping. As the appetite for natural gas continues to grow, the number of LNG export terminals around the globe is also on the rise. This trend is expected to lead to an increase in LNG transportation via ships and the utilization of LNG-powered vessels, thereby boosting the demand for C-Type LNG carriers.

C-Type LNG carriers play a crucial role in the oil and gas sector, facilitating the transport of refined natural gas, including methane, from processing plants to urban areas for residential, commercial, and industrial use. With the escalating demand for oil and gas, drilling operations are extending deeper and further offshore, which in turn increases the necessity for LNG carriers for storage solutions. LNG is transported through various methods, including pipelines, oil tankers, and rail systems, with pipelines being particularly significant as they account for a large portion of oil transport during its journey.

The agreement between the United States and the European Union (EU) to enhance the supply of liquefied natural gas (LNG) is anticipated to positively influence the global market. Under this agreement, the EU is set to receive at least 15 billion cubic meters of additional LNG shipments by 2022, while the US is working with EU nations to deliver an extra 50 billion cubic meters by 2030. This increase in inter-regional trade is expected to create lucrative opportunities for vendors in the C-Type LNG carrier market. Additionally, governments worldwide are actively encouraging private sector involvement in managing their petroleum resources. For example, initiatives have been launched by the Ministry of Petroleum and Natural Gas in India and the Government of Trinidad and Tobago to monetize their petroleum assets. The petrochemical industry heavily depends on LNG pressure carriers, vessels, reactors, and heat exchangers to transform petroleum and other fossil fuels into chemical products such as ethylene and propylene.

The C-Type LNG carrier market is primarily led by key players including Komarine Co., Torgy LNG, Gas Entec Co., Ltd., China Shipbuilding Trading Co. Ltd., and Knutsen OAS Shipping. These companies are actively pursuing growth through various strategies such as launching new products, engaging in market initiatives, investing in technological advancements, and pursuing mergers and acquisitions.

For instance, in 2022, China Shipbuilding Trading Co., Ltd. (CSTC) and Jiangnan Shipyard (Group) Co., Ltd., both subsidiaries of China State Shipbuilding Corporation Limited (CSSC), entered into contracts for the construction of three units of 175,000 cubic meter LNG carriers with ADNOC L&S, marking the second series order of this size in a short timeframe.

Market participants are also implementing diverse strategies to enhance their regional presence. For example, Knutsen OAS has placed orders for three additional LNG carriers with Hyundai Samho Heavy Industries to bolster its marine operations.

Impact of COVID-19 on the C-Type LNG Carrier Market
The COVID-19 pandemic has significantly affected LNG investments and the short- and long-term dynamics of the North American market. The US market has gained prominence over the last decade due to the shale boom; however, the pandemic has caused delays in construction and liquefaction projects, leading to a slowdown in the production of LNG carriers. In this context, LNG projects may present an attractive option for cost-reduction strategies.

The rapidly growing economies in the Asia Pacific region are driving the increasing demand for C-Type LNG carriers, which is expected to play a vital role in the global economic recovery from the COVID-19 pandemic. India, along with China, is anticipated to lead the additions in LNG regasification capacity in Asia, accounting for 60.0% of the total in the region from 2020 to 2024. As economies begin to recover following the lifting of COVID-19 restrictions, LNG demand in Asia is expected to rebound to levels seen in 2018. Additionally, shipyards in China and South Korea have struggled to meet the demand for new LNG vessels due to a surge in orders for new container ships, which followed global supply chain disruptions and port congestion that delayed shipments in the US and China during the pandemic.

Companies featured in the C-Type LNG Carrier market analysis include Komarine Co., Torgy LNG, Gas Entec Co., Ltd., China Shipbuilding Trading Co. Ltd., Knutsen OAS Shipping, TGE Marine Engineering GmbH, Hyundai Samho Heavy Industries Co., Ltd., Mitsubishi Heavy Industries, Ltd., DSME Co., Ltd., and Gaslog Ltd. Players in the C-Type LNG Carrier market are pursuing both organic and inorganic growth strategies to maintain their competitive advantage. For instance, Daewoo Shipbuilding & Marine Engineering Co. (DSME) has secured a contract worth KRW 1.07 trillion (approximately US$ 850 million) to construct four LNG carriers for a Qatar state oil company, with completion expected by 2025. Such initiatives by leading players are expected to contribute to the growth of the C-Type LNG carrier market during the forecast period.

The analysis of the C-Type LNG carrier market has been conducted using both primary and secondary research methods. The research process involved extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data regarding the C-Type LNG carrier market. This approach aimed to provide a comprehensive overview and forecast of the market size across all segments. Additionally, interviews with industry participants and experts were conducted to validate the data and gain further analytical insights. The study included key participants such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the C-Type LNG carrier market.