LNG Storage Tank Market

LNG is a clean fuel, and its application as a shipping fuel is on the rise globally because of more stringent environmental regulations. Sustainable growth in LNG consumption has been facilitated by rising global liquefaction capacity and LNG imports. International LNG trade increased to 401.42 million tons in 2023 by 2.1% from 2022 to 2023, according to the International Gas Union (IGU). In February 2024, the global liquefaction capacity for LNG was 483.1 million tons annually. The US, Australia, and Qatar were top three exporters of the gas in 2023 and covered nearly 60% of the total LNG exports globally, a report by the US Energy Information Administration reported. The capacity for LNG regasification all over the globe is rising yearly. As of 2023, Japan is the largest holder of the global LNG regasification capacity with a total capacity of 217.5 million metric tons annually. Regasification involves the conversion of liquefied natural gas (LNG) at - 259°F to natural gas at atmospheric temperature. A few of the notable projects which were commissioned in the period from 2021 to 2024 are: Wilhelmshaven (5.5 MTPA), Eemshaven (5.9 MTPA), Inkoo FSRU, BW Tatiana FSRU (2.2 MTPA), Lubmin FSRU (3.8 MTPA), Brunsbuttel LNG Terminal (3.7 MTPA), and Gulf of Saros FSRU (21.8 MTPA). With the escalating global energy demand and the rise in climate action projects initiated by governments across the globe, LNG is proving to be a suitable solution. Not only does LNG fulfill the rising energy demands of industries, transport, and domestic sectors, but it also offers a cleaner alternative than conventional fossil fuels like coal and oil. This transition towards LNG is highly influenced by its lower carbon footprint when combusted, in line with most nations' targets to curb greenhouse gas emissions and mitigate climate change. Moreover, LNG infrastructure has been evolving quickly, becoming more available and affordable. Consequently, demand for LNG continues to rise, making it a preferred option over other energy sources in the move towards a more sustainable energy future

One of the fundamental basic materials that are utilized in the production of storage tanks is nickel. Indonesia dominates the global nickel trade, followed by Australia. The Indonesian government has placed restrictions on raw nickel exports in a bid to promote local manufacturing, as Indonesia is the globe's largest nickel producer, accounting for over 20% of global nickel exports. Raw material supply chains were very much affected by this strategy. The policy by the Indonesian government, in trying to increase jobs and GDP domestically, led to steep increases in the cost for producing LNG storage tanks. Steel, one of the main raw materials for the manufacture of tanks, experienced price hikes in 2018 when the US slapped a 25% tariff on Chinese-made steel. In February 2025, the US applied a new 10% additional tariff on Chinese products. To manufacturers, such price changes significantly increase scepticism that can have an impact on the profitability and viability of a project. Budget overspends and expansion in the market result from the raw material cost unpredictability, particularly by smaller firms with an intent to enter the LNG storage tanks sector. The recent global political realignments have resulted in rise in uncertainties related to raw material supply chains and prices, which will have a negative impact on projects by inducing cost and schedule overruns and deterring businesses from actively participating in market activities

Sulphur oxides are exhaust ship engine gases that burn the marine fuel that has sulphur. Other than damaging human health, they also lead to acidification of the soil and water. The International Maritime Organization (IMO) in 2020 introduced 'Global Sulphur Cap", which was announced to lower the sulphur content in marine fuel from 3.5% to 0.5% of the total. This has contributed to decreasing the sulphur oxide emission by approximately 70%. The compliant fuel is very low sulphur fuel oil (VLSFO) and marine gas oil (MGO). Certain new ships are constructed with LNG being a potential fuel for the adaptation of the vessels to meet the future marine fuel standards requirement. LNG produces no sulphur oxide and no particulate matter, which is different compared to other fuel types, and is non-corrosive as well as non-toxic in nature. LNG will result in long-term and cost-effective options as a conventional marine fuel, as against other fuels including very-low sulphur fuel oil (VLSFO) and marine gas oil (MGO). Increased demand for the ships with LNG, which can be readily accepted to the future fuel and emission regulations, is a chance for the market of LNG storage tanks to expand. LNG storage tanks are increasingly deployed in intermodal freight transportation. Intermodal facilities such as depots, container yards, cargo, and storage tanks, which will offer additional alternatives for marine transportation and numerous oil & gas firms, which will drive the market for LNG storage tanks.

Apart from emissions, the environmental footprint includes other ecological concerns. LNG terminals have the potential to pollute surface and groundwater from industrial activity, chemicals, and hydrocarbon products. Extensive risk management strategies and major investments in state-of-the-art containment and monitoring systems are needed given the magnitude of these environmental risks. Since LNG plants are recognized as major emitters of greenhouse gases, increasing attention on methane emissions poses significant operational challenges. Government agencies are putting more stringent environmental standards into practice, and regulatory regimes are becoming tighter, which can pose as a challenge for the growth of the LNG storage tank market. There is mounting pressure on this sector to convert to alternative energy sources. Due to LNG's massive climatic impact, a number of companies are voluntarily adopting carbon capture and storage technologies in an effort to maintain their legitimacy of operation. There is a pressure on LNG storage facilities to adhere to Environmental, Health, and Safety (EHS) guidelines, which require robust management systems for hazardous materials, air emissions, and waste. Compliance with these standards can be very costly and time consuming