Europe C-Type LNG Carrier Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Product Type (Cylindrical, Bi-Lobe, and Tri-Lobe) and Application (Marine, Oil and Gas, Petrochemical, and Others)

Europe C-Type LNG Carrier Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Product Type (Cylindrical, Bi-Lobe, and Tri-Lobe) and Application (Marine, Oil and Gas, Petrochemical, and Others)

The C-type LNG carrier market in Europe is expected to grow from US$ 1,194.12 million in 2022 to US$ 1,847.43 million by 2028. It is estimated to grow at a CAGR of 7.5% from 2022 to 2028.

Rising Demand for Natural Gas from Several Industries

Natural gas is widely used in various industrial applications. For instance, it is used as a fuel for process heating in combined heat and power systems, it is also used as a raw material (feedstock) to produce fertilizer, chemicals, and hydrogen, and as lease and plant fuel. Natural gas is also used for waste treatment and incineration applications, metals preheating in the metal & mining industry, drying and dehumidification, glass melting, food processing, and fueling industrial boilers. Ethane, butane, propane, and a few gases may also be extracted from natural gas, which is used as a feedstock for fertilizers and pharmaceutical products. The growth of the industrial sector is expected to increase the consumption of LNG across industrial applications. As per the IEA Report, in January 2022, natural gas consumption rebounded by 4.6% in 2021, more than double the decline experienced in 2020. Thus, the rising consumption of LNG is likely to propel the regional C-type LNG carrier market growth over the forecast period.

Market Overview

The shipping industry has always been one of the most valuable economic, social, and cultural assets of the European Union. With the European Green Deal and the industry's efforts to decarbonize as part of the IMO's initial strategy to reduce greenhouse gas emissions from shipping adopted in 2018, the shipping industry is making steady progress toward LNG carrier production, thereby boosting the market growth. Additionally, the rise in LNG liquefication across Europe is expected to drive the market during the forecast period. The Russian government is planning to expand its LNG liquefaction capacity, requiring an additional fleet of LNG carriers. Russian shipping company Sovcomflot has ordered 15 LNG icebreakers for Zvezda Shipbuilding's Arctic LNG 2 project with South Korea's Samsung Heavy Industries as the technology partner. These LNG ships will be delivered between 2023 and 2025. Sovcomflot will own a single vessel and, an in collaboration with Novatek, will own 14 other vessels. These carriers allow LNG to be shipped to buyers in Asia within 15 days via the North Sea route, cutting transportation costs and transit times in half.

In addition, European companies are gradually progressing toward producing c-type LNG carriers, and several current and upcoming plans are presented over the lustrum. For instance, currently, there are two small type C LNG vessels under construction by Anthony Veder. Similarly, Knutsen OAS received its complete delivery by Hyundai of its Conventional X-DF carrier in 2021. Furthermore, owing to oversupply and low margins, several of Europe's LNG import terminals have sought new demand opportunities by establishing new services at existing LNG import facilities. Many European import terminals have changed or are planning to upgrade their infrastructure to provide new services to customers, enhancing LNG's flexibility. Hence, the growing carrier production, coupled with rising LNG liquefication, is anticipated to propel the C-Type LNG carrier market over the forecast period.

Europe C-Type LNG Carrier Market Revenue and Forecast to 2028 (US$ Million)

Europe C-Type LNG Carrier Market Segmentation

The Europe C-type LNG carrier market is segmented into product type, application, and country. Based on product type, the Europe C-type LNG carrier market is segmented into cylindrical, bi-lobe, and tri-lobe. The cylindrical segment registered the largest market share in 2022.

Based on application, the Europe C-type LNG carrier market is segmented into marine, petrochemicals, oil and gas, and others. The marine segment registered the largest market share in 2022. Based on country, the market is segmented into France, Germany, the UK, Italy, UK, Russia, and the Rest of Europe. Germany dominated the market share in 2022. China Shipbuilding Trading Co., Ltd.; DSME Co., Ltd.; Gaslog Ltd.; HYUNDAI SAMHO HEAVY INDUSTRIES CO., LTD.; Knutsen OAS Shipping; Komarine Co.; Mitsubishi Heavy Industries, Ltd.; and Torgy LNG AS are the leading companies operating in the c-type LNG carrier market in the region.

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