The C-type LNG carrier market size was valued at US$ 6,469.02 million by 2028 from US$ 3,920.84 million in 2021. It is expected to grow at a CAGR of 7.5% during 2022-2028.
The growth of the C-Type LNG carrier market is being propelled by various factors, including the increasing demand for natural gases from residential, industrial, and commercial sectors, especially in developing economies. Additionally, the usage of LNG carriers is expanding for various end-use applications, including defense and transport, which is contributing to the market's growth.
The demand for LNG has resulted in significant investments in infrastructure, production, and international distribution networks, leading to a surge in the demand for LNG shipping. As the demand for natural gas continues to rise, the number of LNG export terminals worldwide is also increasing. Consequently, the transportation of LNG by ships and the use of LNG-fueled vessels are projected to escalate in the coming years, driving the demand for C-Type LNG carriers.
C-Type LNG carriers are extensively utilized in the oil and gas industry for transporting refined natural gas, including methane, from processing facilities to population centers for residential, commercial, and industrial purposes. With the increasing demand for oil and gas, drilling has become deeper, with many drilling rigs located farther offshore, resulting in a growing need for LNG carriers for storage. LNG is transported to different locations via various means, including pipelines, oil tankers, and railroads. Among these, pipelines play a vital role in the transportation process as a significant proportion of oil is moved through pipelines for at least some part of the journey.
The US and the European Union (EU) agreement to increase the supply of liquefied natural gas (LNG) is expected to impact the global market positively. As per the deal, the EU will receive a minimum of 15 billion cubic meters of extra LNG shipments by 2022, while the US Commission is collaborating with EU countries to transport an additional 50 billion cubic meters of materials by 2030. The resulting increase in inter-regional trade is likely to provide lucrative opportunities for C-Type LNG carrier market vendors in the future. Furthermore, governments worldwide actively seek to increase private sector participation to manage their country's petroleum resources. For instance, the Ministry of Petroleum and Natural Gas in India and the Government of Trinidad and Tobago have launched initiatives to monetize their petroleum resources. The petrochemical sector heavily relies on LNG pressure carriers, vessels, reactors, and heat exchangers to convert petroleum and other fossil fuels into chemical products like ethylene and propylene.
The C-Type LNG carrier market is mainly dominated by players such as Komarine Co.; Torgy LNG; Gas Entec Co., Ltd.; China Shipbuilding Trading Co. Ltd.; and Knutsen OAS Shipping. Further, these players engage in expanding their business through activities such as new product launches, market initiatives, investment in technology upgrades, mergers & acquisitions, and other joint activities.
For instance, in 2022, China Shipbuilding Trading Co., Ltd. (CSTC) and Jiangnan Shipyard (Group) Co., Ltd.-two subsidiaries of China State Shipbuilding Corporation Limited (CSSC)-signed newbuilding contracts for three units of 175000 cubic meter LNG carriers with ADNOC L&S, which is the second series order of 175000 cbm LNG carrier in short term.
Market players are implementing various strategies to expand their regional footprints. For example, Knutsen OAS ordered three additional LNG carriers from Hyundai Samho Heavy Industries to expand its marine business.
COVID-19 Impact on C-Type LNG Carrier Market Size
The COVID-19 pandemic has had a significant impact on LNG investment and the near- and longer-term fundamentals of North America's market. The US market, in particular, has gained importance in the past decade due to the shale boom. However, COVID-19 has caused delays in the construction and liquefaction projects, resulting in a slowdown in the production of LNG carriers. In light of this situation, LNG projects could be an appealing option for cost-cutting measures.
The Asia Pacific's rapidly expanding economies are driving the growing demand for C-Type LNG carriers, which is expected to contribute significantly to the global economic recovery from the effects of the COVID-19 pandemic. India, in particular, along with China, is projected to lead the LNG regasification capacity additions in Asia, accounting for 60.0% of the total in the region between 2020 and 2024. As the economies began to reopen after the COVID-19 restrictions were lifted, LNG demand in Asia is expected to return to 2018. Additionally, the shipyards in China and South Korea could not meet the demand for new LNG vessels due to the flood of orders for new container ships that followed global supply chain disruptions and port congestions, which delayed ships in the US and China during the pandemic.
Companies profiled in the C-Type LNG Carrier market study include Koarine 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. C-Type LNG Carrier market players are following both organic and inorganic growth strategies to sustain the competitive edge. For instance, Daewoo Shipbuilding & Marine Engineering Co. (DSME) has received KRW 1.07 trillion (US$ 850 million) to build four liquefied natural gas (LNG) carriers as a part of a deal with a Qatar state oil firm, which will be done by 2025. Such initiatives by key players will contribute to the C-Type LNG carrier market growth during the forecast period.
The analysis of the C-Type LNG carrier market has been carried out by utilizing both primary and secondary sources. The research process involved exhaustive secondary research using both internal and external sources to gather qualitative and quantitative information regarding the C-Type LNG carrier market. This process aimed to obtain an overview and forecast of the market size for all market segments. Additionally, industry participants and experts were interviewed to validate the data and gain further analytical insights. The study involved key participants, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the C-Type LNG carrier market.