The global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years.
Growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices coupled with implementation of favorable government policies is boosting demand for LNG across the globe. Increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years.
On the other hand, inadequate pipeline infrastructure is augmenting demand for small scale LNG projects to supply natural gas to key consumers in remote areas, especially in power and industrial sectors. Increasing urbanization, growing industrialization and rising number of projects related to power, city gas distribution, petrochemical, etc., are expected to positively influence global LNG market during 2016-2025.