Middle East and Africa LNG storage tank Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Configuration, Type, and Material

The LNG storage tank market in MEA is expected to grow from US$ 962.80 million in 2021 to US$ 1,435.31 million by 2028; it is estimated to grow at a CAGR of 5.9% from 2021 to 2028.

The mounting readiness of liquefied natural gas (LNG) offers access to least carbon-intensive hydrocarbon among various coastal areas.The floating storage and regasification units (FSRU) terminal plays a significant role in the LNG value chain, developing the interface between the local gas supply infrastructure and the LNG carriers.

The FSRU is convenient, adaptable, and avails natural gas to the market faster than land-based installations.The FSRU vessels are installed on ships or offshore, depending upon the design they integrate.

The FSRUs are being equipped in two different ways: it is fitted either as an old gas carrier that can easily be converted into an independent unit placed in an offshore installation or installed as a separate unit aboard the LNG carrier itself.When the FSRU unit is installed in the ship, its construction is like other LNG ships undergoing LNG trading operation with regular dry-docking and complying with all the required international marine safety standards.

The significant advantage of such installation is that the heating and liquefaction process is carried out within the vessel rather than unloading the fuel in its semi-frozen slushy state. Thus, the increasing application of FSRU is creating a massive opportunity for the growth of the LNG storage tanks market. Additionally, Procurement of high manganese steel is among the other factors expected to fuel the demand for LNG storage tank system in MEA.

Based on configuration, the self-supporting tank segment is expected to be a faster growing segment during the forecast period.Self-supporting tanks or independent tanks are not considered an integral part of the hull structure in the ship and does not impact to the overall strength of the hull girder.

These tanks are strong enough by virtue of its construction and can handle any loads forced on it by the cargo.According to International Gas Carrier Code (IGC), based on design pressure, three different types of independent tanks LNG carriers are Type ‘A’, Type ‘B’ and Type ‘C’.

Type ‘A’ tanks are constructed with the flat surfaces and the material used for manufacturing Type ‘A’ tanks is not crack propagation resistant.Thus, to safeguard the cargo tank leakage, an additional secondary containment system is required.

This secondary containment system is also known as a secondary barrier and is a feature of all ships with Type ‘A’ tanks capable of carrying cargoes below -10°C. Type ‘B’ is constructed with flat surfaces or of the spherical type. This tank has advantage of expanding the ship hull volumetric efficiency and the cargo tank placed beneath the main deck. The prismatic shape of tis tank offers the maximum design vapor space pressure. Type ‘C’ are designed as a spherical or cylindrical pressure vessels and has design pressures higher than 2 barg. This spherical or cylindrical vessels are horizontally or vertically mounted. The self-supporting tanks is the fastest growing segment, owing to rising LNG trade. These tanks are more strength and durability for transporting LNG from one place to other. The non-self-supporting tanks are capable enough to handle partial loading under extreme sea conditions.

Saudi Arabia, the UAE, Egypt, Morocco, and Kuwait are the countries facing the economic effects of COVID-19 in the MEA region.The Middle East region especially the GCC countries witnessed a notable decline in their oil & gas sector owing to sharp decline in demand of LNG from major end user countries across Asia, Europe, and North American regions.

As a result, the countries registered a lowered volume of LNG production as well as construction of oil & gas related projects and subsequently the demand for LNG storage tanks.Countries such as Saudi Arabia, the UAE, Qatar, and other selected members of OPEC countries also observed similar trends during the early months of the pandemic outbreak.

Further, due to COVID impact the factory shutdown, business, and various major manufacturing plant shutdown as well as travel bans has negatively impacted the growth of the LNG storage tanks market in the region.
The overall MEA LNG storage tank system market size has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market.

The process also serves the purpose of obtaining an overview and forecast for the MEA LNG storage tank system market with respect to all the segments pertaining to the region.Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic.

The participants who typically take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the MEA. Air Water Inc.; Chart Industries, Inc.; Cryolor; IHI Corporation; Linde Plc; McDermott International, Inc.; and Wartsila Corporation are among the key players operating in the MEA LNG storage tank system market.