Report

Global LNG storage tank market is projected to witness a CAGR of 8.06% during the forecast period 2024-2031, growing from USD 15.84 billion in 2023 to USD 29.45 billion in 2031. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.
LNG storage tanks are highly efficient in the storage and transportation of natural gas. Moreover, LNG storage facilities offer several advantages, such as revolutionizing the energy sector by diversifying energy sources, enhancing grid stability, and reducing carbon emissions. They play a crucial role in facilitating energy security and ensuring a steady supply of LNG during disruptions in natural gas production, thus safeguarding against energy shortages and reducing dependence on the volatile fuel markets. Furthermore, the market growth is augmented by several factors like the increasing demand for LNG in various energy and steel end-use industries, the need for better LNG infrastructure, etc.
The need for proper LNG infrastructure is increasing due to surging global demand for LNG as regions with growing LNG demand seek supply from those with abundant resources. This urgency is intensified by the need to meet growing energy demand, declining domestic gas supply, and interruptions in piped gas supply.
For example, in September 2023, VINCI Construction Grands Projets, a subsidiary of VINCI Construction, was awarded a contract worth USD 175.22 million to construct a 180,000 m3 LNG tank in the Netherlands. The project is part of the expansion of the storage capacity and regasification of the GATE terminal in Rotterdam, which will possibly enable the supply of an additional 4 billion m3 of gas annually. The project incorporates the construction of a new LNG storage tank made with a nickel steel inner tank and a post-tensioned concrete outer container. It is anticipated to be completed by the second half of 2026.
Utilization Of Membrane Tanks is Amplifying the Market Growth
The utilization of membrane tanks is increasing in the LNG storage tank market due to their safety, flexibility, and cost-effectiveness. Membrane tanks are considered equal to 9% nickel steel full containment tanks in terms of safety and are being accepted by most of the large organizations. The membrane technology was initially designed for use on LNG tankers and is now being used for above-ground LNG storage tanks on land. Moreover, the membrane tank containment system is proven and safe, based on experience with LNG, LPG, and ethylene storage, and reduces losses while increasing delivered product.
For example, in January 2024, GTT received two orders for the tank design of two new Liquefied Natural Gas Carriers (LNGC). The first LNGC, with a total capacity of 174,000m3, will be constructed by the South Korean shipyard Hanwha Ocean and will feature the NO96 GW membrane containment system. The delivery of this vessel is scheduled for the third quarter of 2027. The second LNGC, also with a total capacity of 174,000 m3, will be built by the South Korean shipyard Samsung Heavy Industries and will incorporate GTT's Mark III Flex membrane containment system.
Moss tanks is Aiding the Market Expedition
Design developments in moss tanks, such as optimizing the tank shape and the emergence of new membrane types, are influencing the LNG storage tank market. These developments, including the introduction of new membrane solutions with different degrees of boil-off gas (BOG) performance, are enhancing the efficiency and performance of LNG carriers. Additionally, the use of independent tanks is gaining traction in the small and medium-sized LNG carrier sector, driven by the developing LNG bunkering market and the need for local redistribution.
For example, in December 2023, NYK Line, Namura Shipbuilding, and Sasebo Heavy Industries collaborated to replace the main propulsion on steam turbine-driven Moss-type LNG carriers with dual-fuel, low-speed diesel engines called X-DF engines. The Moss-type LNG tanks on these carriers are durable and can withstand long-term use, resulting in improved fuel economic performance and efficient use of the ship's resources.
Government Initiatives are Acting as Catalyst
Government initiatives and policies play a crucial role in shaping the growth of the LNG storage tank market. Governments especially in India are promoting the use of LNG by implementing initiatives to boost its adoption. Additionally, government support is essential for ensuring a steady supply of LNG, reduction in dependence on fuels, enhancing energy security, etc. thus influencing the growth prospects of the market.
For instance, in May 2023, the installation of LNG rundown lines by the United States government from the liquefaction area to the LNG storage tanks at the Lake Charles LNG facility is a significant development. This project, which involves the construction, commissioning, and installation of off-plot facilities, is a key component of the LNG infrastructure. The installation of these rundown lines is essential for the efficient and safe transfer of liquefied natural gas to the storage tanks, contributing to the overall functionality and operational readiness of the facility.
Transportation and Logistics Sector is Augmenting the Market Prospects
The Transportation and Logistics sector's increasing use of LNG as a fuel has significantly influenced the demand for LNG storage tanks. As LNG becomes the preferred fuel for shipping, the need for efficient and safe storage and transport has grown abruptly. This trend has bolstered the demand for LNG storage tanks, and the future outlook indicating robust prospects for LNG in various transportation sectors, is further driving the market prosperity.
For instance, in December 2023, Japan's shipping company NYK finalized a long-term contract for LNG transportation with China's state-controlled energy giant Sinopec. The contract, spanning up to 23 years, is set to commence in 2024 or later and involves the transport of LNG to China. This agreement adequately aligns with China's commitment to carbon neutrality and reflects the growing demand for LNG transportation services in the region, further strengthening NYK's position in the LNG shipping sector.
Asia-Pacific Significantly Spearheaded the Market
The Asia-Pacific region held the largest share in the LNG storage tank market, and it is projected to be the fastest-growing market for LNG storage tanks. The growth in the APAC region can be attributed to significant developments in power, energy, and technologies, plus the growing trade of LNG, which is expected to continue. The region's growing import of small-scale LNG, coupled with the growth in the Asia Pacific steel and metal industry, boosts the demand for LNG storage tanks in the region. Furthermore, the availability of natural gas reserves, efficiency, and low carbon footprint have further increased the use of LNG, thereby driving the market growth.
For example, in November 2023, China's largest LNG storage tank, independently designed, developed, and built by Sinopec, became operational at the Qingdao LNG receiving terminal. The 270,000 cubic meter tank, with a diameter of 100.6 meters and a height of 55 meters, would add 165 million cubic meters of storage capacity to meet the gas demand of 2.16 million households for five months during the winter season.
Future Market Scenario (2024 - 2031F)
- The demand for LNG storage tanks is increasing due to the growing demand for LNG in various energy and steel end-use industries. This, in turn is expected to result in huge growth opportunities for the market in future.
- The Middle East is expected to become an LNG consumer, driving the demand for LNG storage tanks. Furthermore, Asia Pacific is anticipated to be the fastest-growing market for LNG storage tanks, driven by a considerable increase in investments by regional governments in the energy sector.
- The LNG storage tank market is highly competitive, with major players creating ample opportunities for future growth. The leading companies are various growth strategies, such as product launches, acquisitions, and collaborations, to remain prevalent in the market.
Key Players Landscape and Outlook
Key participants in the LNG storage tank market include Sinopec, Linde Plc , McDermott International Inc., IHI Corporation, Wartsila, CIMC ENRIC, and Carbon Energy Group. These organizations are continuously investing in R&D and employing competitive strategies such as mergers, acquisitions, and agreements to strengthen their position in the rapidly changing market environment.
In November 2023, IHI Corporation, Japan's leading manufacturer of ammonia storage tanks, developed a technology for large-scale ammonia receiving terminals using large LNG storage tank. IHI and Royal Vopak signed a Memorandum of Understanding (MoU) to embark on a joint study regarding the development and operation of high-value-added ammonia terminals in Japan. The collaboration focused on large-scale ammonia storage terminals, strategically positioned for the economical distribution of ammonia, which plays an important role as a fuel for reducing carbon emissions from thermal power both in Japan and abroad.
In October 2023, Finnish maritime manufacturer Wartsila developed a new 25DF dual-fuel LNG engine, which will be used on two new sail-assisted cruise ships being built at the Chantiers de l'Atlantique, including the 220m-long Orient Express Silenseas, set to be the largest sailing ship in the world when it launches in 2026. The engine is described as the "most efficient" in its power range and supports the shipping industry's transition to greater fuel efficiency and reduced emissions.