LNG Carrier Market to Reach $244.8 billion, Globally, by 2033 at 6.2% CAGR: Allied Market Research

Increase in global demand for liquefied natural gas (LNG) is a key driver in the growth of LNG carriers. As countries transition toward cleaner energy sources, LNG has emerged as a vital alternative to coal and oil, offering lower carbon emissions and higher energy efficiency. Nations such as China, India, and various European countries are ramping up their LNG imports to meet energy demands while adhering to stricter environmental regulations.

/EIN News/ -- Wilmington, April 11, 2025 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, "LNG Carrier Market by Propulsion Type (Steam Turbine Propulsion, Dual-Fuel Diesel Electric (DFDE) Propulsion, Tri-Fuel Diesel Electric (TFDE) Propulsion, Slow-Speed Diesel with Gas Injection (ME-GI), and X-DF (Low-Pressure Dual-Fuel Engines)), Containment Type (Membrane Systems and Moss Rosenberg), Carrier Capacity (Small Carriers (less than 30,000 cubic meters), Medium Carriers (30,000 -125,000 cubic meters), Large Carriers (125,000 -180,000 cubic meters), and Very Large LNG Carriers (180,000+ cubic meters)), and Application (Transport, Defense, and Others): Global Opportunity Analysis and Industry Forecast, 2024-2033". According to the report, the "LNG carrier market" was valued at $135.1 billion in 2023, and is estimated to reach $244.8 billion by 2033, growing at a CAGR of 6.2% from 2024 to 2033.

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Growing LNG Trade & Export Infrastructure Provides Opportunities in the Market

The global LNG trade is experiencing significant expansion, driven by rise in investments in LNG terminals and liquefaction plants across key regions such as the U.S, Qatar, and Australia. These countries have established themselves as dominant LNG exporters, responding to increasing global energy demand and the shift towards cleaner fuels. The expansion of export infrastructure, including liquefaction facilities and shipping terminals, is enabling greater volumes of LNG to be transported across international markets, thereby fueling the demand for LNG carriers. In 2023, the U.S. emerged as the world's leading LNG exporter, surpassing Qatar and Australia, with exports totaling 91.2 million metric tonnes. This achievement was bolstered by the resumption of operations at the Freeport LNG facility in Texas, which had been offline due to a fire in June 2022. The facility's return added approximately six million tonnes to U.S. production. Looking ahead, projects such as Venture Global LNG’s Plaquemines and the Golden Pass facility in Texas a joint venture between QatarEnergy and ExxonMobil are expected to further increase U.S. LNG production by an additional 38 million tonnes per annum (mtpa) in the coming years.

Fleet Modernization & Green Shipping Initiatives

​The maritime industry is undergoing a significant transformation towards sustainability, with a strong focus on fleet modernization and green shipping initiatives. Several major shipping companies are investing in LNG-fueled vessels to enhance fuel efficiency and reduce emissions. For instance, Mitsui O.S.K. Lines (MOL) has expanded its fleet with five new LNG-fueled Capesize bulk carriers, scheduled for delivery between 2026 and 2027. This initiative contributes to MOL's goal of operating 90 LNG/methanol-powered vessels by 2030, as part of their strategy to achieve net-zero GHG emissions by 2050. ADNOC Logistics & Services (ADNOC L&S) has committed up to $2.5 billion for the construction of 8 to 10 new LNG carriers. These vessels, expected to be delivered from 2028, will feature advanced technologies to improve fuel efficiency and reduce carbon intensity, supporting ADNOC's 2045 Net Zero target

Report coverage & details:

Report Coverage	Details
Forecast Period	2024–2033
Base Year	2023
Market Size in 2023	$135.1 billion
Market Size in 2033	$244.8 billion
CAGR	6.2%
No. of Pages in Report	490
Segments Covered	Propulsion Type, Containment Type, Carrier Capacity, Application, and Region
Drivers	Advancements in LNG Carrier Technologies
	Increase in shift toward cleaner energy sources
Opportunity	Growth in Floating LNG (FLNG) Projects
Restraint	High Initial Capital Investment

Expansion of Floating LNG (FLNG) Facilities in Asia-Pacific Countries

The Asia-Pacific region has witnessed significant advancements in Floating Liquefied Natural Gas (FLNG) facilities, reflecting a robust commitment to enhancing offshore LNG production and infrastructure. In October 2024, Singapore LNG Corporation (SLNG) entered into an agreement with Japan's Mitsui O.S.K. Lines (MOL) to charter a newly built Floating Storage and Regasification Unit (FSRU). This initiative aims to establish a second LNG import terminal in Singapore, augmenting the nation's LNG import capacity. The FSRU, with a storage capacity of 200,000 cubic meters and a regasification capacity of 5 million tons per annum (mtpa), is scheduled for delivery in 2027 and will be berthed at Jurong Port, connecting to Singapore's gas pipeline network. This development underscores Singapore's strategic efforts to diversify its energy sources and enhance energy security. In November 2024, BP and its partners approved a $7 billion expansion of the Tangguh LNG facility in West Papua, Indonesia. This project involves developing the Ubadari gas field and integrating carbon capture, utilization, and storage (CCUS) technology to enhance gas recovery, marking BP's inaugural CCUS initiative. The expansion is expected to increase the plant's capacity by an additional 3 trillion cubic feet of natural gas, with production slated to commence in 2028. This endeavor not only strengthens Indonesia's position as a key LNG exporter but also aligns with global sustainability goals by incorporating advanced emission-reduction technologies.

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Government Policies & Climate Initiatives for LNG Carriers

Governments worldwide are increasingly promoting liquefied natural gas (LNG) as a cleaner alternative to traditional fossil fuels, leading to significant investments in LNG infrastructure and transportation. These policies aim to reduce greenhouse gas emissions and enhance energy security.​ In August 2024, the European Union implemented stringent methane regulations requiring strict control over methane emissions. These regulations may impact U.S. LNG exporters seeking to enter the European market, as compliance with these environmental standards becomes a prerequisite for trade. ​In September 2024, India plans to convert a third of its heavy-duty, long-haul trucking fleet to operate on LNG within the next five to seven years. This initiative aims to reduce pollution and decrease diesel consumption, aligning with India's goal to achieve net-zero emissions by 2070. The government is establishing LNG dispensing stations and allocating natural gas resources to support this transition. Pertamina International Shipping, a unit of Indonesia's state energy firm, plans to double its tanker fleet within the next decade, focusing on LNG transport. This expansion aligns with Indonesia's role as a key LNG producer and exporter, contributing approximately 5% of global exports. The company is also exploring cleaner fuels and more efficient shipping practices to reduce emissions and comply with decarbonization goals.

Identifying Market Challenges & Providing Solutions in LNG Carrier Market

Volatility in LNG Demand & Prices - The LNG market is highly volatile, driven by a combination of geopolitical factors, seasonal demand fluctuations, and competition from alternative energy sources. For instance, geopolitical tensions—such as the Russia-Ukraine conflict—have significantly impacted LNG trade flows, causing price spikes in European markets. In 2022, European LNG import volumes surged by over 60% as countries sought to reduce dependence on Russian pipeline gas, leading to an all-time high spot price of over $70 per MMBtu in August 2022. However, in 2023, as supply chains adjusted and demand softened in Asia, LNG spot prices fell sharply, averaging around $10-$15 per MMBtu by mid-year. Such price swings create challenges for LNG carriers, affecting profitability and operational stability. For example, Japan, the world’s largest LNG importer, recorded a 15% increase in LNG imports during the winter of 2021–2022 compared to the summer months. However, with growing investments in renewable energy, the reliance on LNG for power generation is gradually diminishing, posing long-term risks to LNG carrier demand.

Solution - To mitigate price volatility, LNG suppliers and carriers are increasingly focusing on long-term contracts, which provide stability in pricing and demand. In 2023, over 70% of global LNG trade was conducted under long-term agreements, ensuring predictable revenue streams for suppliers and reducing exposure to spot market fluctuations. Diversifying the customer base is another crucial strategy, with major LNG exporters such as the U.S. and Qatar expanding shipments to both Asian and European markets to balance demand shifts

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Key Players: -

• Samsung Heavy Industries Co. Ltd
• Hyundai Samho Heavy Industries Co. Ltd
• Mitsubishi Heavy Industries Ltd
• Kawasaki Heavy Industries Ltd
• China Shipbuilding Trading Co. Ltd
• Japan Marine United Corporation
• BW Group
• Golar LNG Limited
• Flex LNG Ltd
• Knutsen Group

Recent Key Developments

• In December 2022, Hyundai Samho Heavy Industries Co. Ltd held keel-laying ceremonies for two 174,000-cubic-meter LNG carriers for Norwegian shipowner Knutsen. These vessels are part of a series of nine LNG carriers chartered to Shell, featuring dual-fuel X-DF engines and advanced containment systems. Delivery is expected in 2024
• In March 2022, Mitsubishi Heavy Industries Ltd Shipbuilding, a subsidiary of Mitsubishi Heavy Industries, secured a contract to build an LNG bunkering vessel for KEYS Bunkering West Japan Co., Ltd. This vessel, the first to operate in western Japan, is equipped with a dual-fuel engine capable of using both LNG and heavy oil, enhancing environmental performance. Completion and handover were scheduled for March 2024.
• In December 2024, Kawasaki Heavy Industries Ltd revised its Japan-Australia hydrogen supply chain project, suspending plans to use hydrogen derived from Australian brown coal due to construction approval delays. The company decided to source hydrogen produced in Japan and reduced the size of liquefied hydrogen carriers from 160,000 cubic meters to 40,000 cubic meters to better match early market needs.

The report provides a detailed analysis of these key players in the global LNG carrier market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, and agreements to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to highlight the competitive scenario.

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