“Growth in LNG as an Alternative Fuel for Transportation”
- The transportation sector is increasingly turning to small-scale liquefied natural gas (LNG) as an environmentally friendly alternative to diesel and heavy fuel oils. LNG’s low emissions profile and cost-effectiveness are driving its adoption in both marine and road transport
- Regulatory pressure to reduce greenhouse gas emissions is prompting the adoption of cleaner fuels, with LNG being a prime candidate for reducing carbon emissions in heavy-duty trucks and ships
- Many shipping companies and logistics providers are incorporating LNG-powered vessels and fleets to comply with global environmental standards
For instance,
- In February 2024, CMA CGM Group, a leading global shipping company, announced that it would expand its fleet of LNG-powered ships to meet stricter emission regulations, further enhancing LNG's role in the maritime industry
- This trend is expected to continue, positioning Small-Scale LNG as a key component in the decarbonization of the transportation industry, particularly in sectors with high fuel consumption
Frequently Asked Questions
The key trends in the small-scale liquefied natural gas (LNG) market is the growth in lng as an alternative fuel for transportation.
The major factors driving the growth of the small-scale liquefied natural gas (LNG) market is the increased demand for energy security and diversification.
The primary challenges in the small-scale liquefied natural gas (LNG) market include high initial infrastructure costs.
The Transportation segment is the dominating segment in the small-scale liquefied natural gas (LNG) market, owing to development of LNG fueling stations and bunkering facilities is accelerating the adoption of LNG in the transportation sector.
North America is estimated to show lucrative growth during the forecast period of 2025 to 2032 due to the increasing consumption of small-scale LNG, the highest number of manufacturing units of the natural gas, and the high availability of the gases terminals in the region.
