As LNG Boom Creates Supply Glut, Many Turn to 'Micro LNG' for Small-Scale Solutions

Researched by Industrial Info Resources (Sugar Land, Texas)--The liquefied natural gas (LNG) market, which has stunned industry observers with its exponential growth in the past few years, may become a victim of its own success. With low prices and weakening demand possibly leaving producers with a costly glut, many are turning to "micro LNG" as an economic alternative. In the U.S. and Canada alone, Industrial Info is tracking 20 LNG-production projects, with a total investment value (TIV) of $11.45 billion, that are set to be completed during the 2016 calendar year.

In its "World Energy Outlook 2015" report, the International Energy Agency (IEA) said that LNG exports from the U.S. and Australia are expected to drive rapid growth in the global supply of LNG over the next few years. Still, the intensity of demand is questionable, as two major customers--Japan and China--have shown less interest in importing LNG than anticipated. A collapse in LNG prices, particularly in East Asia, also is making the product less profitable.

With more LNG production plants coming online in the near future and no near-term rise in oil prices expected, the IEA believes that "significant volumes of gas will be looking for a home."

Whereas LNG systems normally are designed for outputs of more than 100,000 gallons per day, smaller "micro LNG" plants can be more easily built and funded than mega-projects, and are a more affordable option when commodity prices are at a low point. With oil prices likely to stay in the doldrums, these kinds of plants increasingly are being seen as preferable.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.