In 2012, the natural gas market was estimated to be worth $161.4 million. It’s grown at a compound annual growth rate of 2.8%, and could reach a value of $196.4 million as early as 2019.
And the majority of this market growth will be in industrial and electric power markets.
Liquefied natural gas (LNG) is used in fertilizers, chemicals, and steel as fuel for the industrial processes involved. It is also a major player in the energy sector, as many power plants are switching to natural gas from coal or nuclear power.
The biggest factor next to energy needs is environmental conservation. Look, we all know that coal puts out harmful emissions and leaves a massive carbon footprint, and also that there’s a huge stigma attached to nuclear power.
So it’s no surprise that countries like China and Japan are shutting down plants in place of natural gas power.
Below, you’ll find a chart showing where Japan allocated its LNG use in 2013, two years after their major nuclear disaster:
As you might’ve guessed, natural gas is also more efficient than coal in electricity production, making it the fuel of choice in large and small scale plants. Peak hours are covered effectively in large scale. In small scale, as much as 100 mega-watts of power can be supported by captive power plants.
LNG and natural gas imports are growing into majority sections of many countries’ industrial and electricity supplies.
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