Global bio -LNG market is anticipated to grow at a CAGR of 11.1% during the forecast period (2024-2031). The market growth is driven by the growing adoption of a well-developed LNG filling with an improved network. Additionally, the use of bio-LNG supports a circular economy and provides for sustainable energy demand, which contributes towards market growth.
The global bio-LNG market is segmented by source type (organic household waste, organic industrial waste, municipal waste, and agriculture residues), by application (transportation fuel, power generation, and others), and by geographies (North America, Europe, Asia-Pacific, and Rest of the World).
Market Dynamics
According to the IGU’s 15th annual World LNG Report, the global LNG trade grew by 2.1% in 2023, surpassing 401 million tonnes (MT). The global market now connects 20 exporting with 51 importing markets, while supply is currently the primary growth-limiting factor. LNG receiving capacity growth reached 1,029.9 MTPA across 47 markets at the end of February 2024, adding almost 70 MTPA in 2023. The value is the highest since 2010. The supply remained constrained, with just 0.8% YOY growth from Indonesia’s 3.8 MTPA addition at Tangguh LNG. However, global liquefaction capacity is anticipated to grow to over 700 MTPA by 2030. In 2023, LNG export was dominated by the US (84.53 MT), followed by Australia (79.56 MT), Qatar (78.22 MT), and Russia (31.36). In 2023, LNG prices witnessed spot declines attributed to import growth in Asia, as Platts JKM averaged $13.86/mmBtu during the year. Additionally, the average annual price volatility has significantly reduced from 2022 levels. Japan, Korea, and India occupy the second, third, and fourth positions.
However, the market growth is challenged by the project approvals pause on the non-FTA LNG by the Biden Administration, which affects 70 MTPA of new capacity. Additionally, the sanctions on Russian LNG may prohibit Ukraine from extending the Russian gas transit deal at the end of 2024, impacting around 20 MTPA of expected capacity. The ongoing security risk in the Middle East, and the declining gas field supply, are anticipated to negatively impact the market growth. In addition, over 120 MTPA of operational liquefaction capacity is affected due to insufficient upstream gas production, demonstrating supply-side risk, and threatening the market growth.
The major players in the bio-LNG market include EnviTec Biogas AG, Iveco S.p.A., Linde plc, Shell Plc, TotalEnergies, and others. The market players are contributing significantly to the market growth, by the adoption of various business strategies, such as collaborations, mergers and acquisitions, product portfolio diversification, and more.
Recent Developments