Namely, Europe is to experience a fast-paste develop in comparison to other regions in the market, globally, because of the mandate set by European Union on sulphur emissions. For example, the emissions cap for marine fuel will reach the 0.5% by 2020 affecting more than 70.000 ships.
Moreover, the prices of LNG along with the increasing demand from fields such as transportation and power generation are expected to increase market demand over the forecast period. The regulations, coming from governments, concerning the advantages of LNG's environmental advantages have boosted the market development across the region.
Small scale LNG includes the direct use of LNG in its liquid form. traditional types of regasification and introduction of LNG into the gas transmission grid for lesser production capacities belong to small scale LNG.
According to the research, these small-scale liquefaction plants posses a production capacity of less than 500,000 tonnes per year, and vessels with a LNG storage capacity less than 30,000 cubic meters. Also, small-scale LNG plants are re-deployable and designed for small gas field. Small-scale LNG satisfy the demands the shipping and tracking industries have set concerning fuels that are eco-friendly, contrary to oil and diesel.
The marine fuel segment is likely to propel at the fastest CAGR of 12.48% over the forecast period. An increase in bunkering operations has been addressed for small-scale ships, which suggests that the marine use of LNG is also becoming popular.
Finally, supply, service and passenger vessels are showing an increase amongst others. LNG offers a great performance, while in the meantime it meets the environmental regulations. Because of the above factors, the demand for LNG is expected to increase at an unprecedented rate.