(MENAFN- GlobeNewsWire - Nasdaq) The market is poised for growth due to rising demand for clean energy in off-grid and remote areas. This presents opportunities for LNG adoption in power generation, transporting energy to underserved regions, and supporting energy mix diversification.Dublin, June 06, 2025 (GLOBE NEWSWIRE) -- The "Middle East & Africa Small-Scale LNG Market by Country, Competition, Forecast & Opportunities, 2020-2030F" has been added to ResearchAndMarkets.com's offering.
The Middle East & Africa Small-Scale LNG Market was valued at USD 2.04 billion in 2024 and is projected to reach USD 2.90 billion by 2030, rising at a CAGR of 5.91%.
Key Market Drivers
Growing Demand for Clean Energy: The increasing demand for cleaner energy sources across the Middle East and Africa is a major driver for the small-scale LNG market. Regional efforts to reduce dependency on high-emission fuels and meet decarbonization targets are accelerating the adoption of LNG as a viable transition fuel.
Natural gas is increasingly recognized for its cleaner-burning properties compared to coal and oil. Small-scale LNG infrastructure enables the use of natural gas in off-grid or remote regions where traditional energy systems are not feasible. Countries like Egypt, South Africa, and GCC nations are actively integrating LNG into their energy portfolios to align with global climate commitments and expand access to reliable power in underserved areas.
According to the International Energy Agency (IEA), energy demand in Africa is projected to grow by more than 60% by 2040, reinforcing the urgency for cleaner, more sustainable solutions. Small-scale LNG helps bridge this gap by enabling low-emission power generation, industrial fuel supply, and cleaner transport options.
Key Market Challenges
High Infrastructure Costs and Capital Investment: A major challenge for the Middle East & Africa small-scale LNG market is the significant capital required for infrastructure development. Unlike their large-scale counterparts, small-scale LNG operations lack economies of scale, making each component - from liquefaction plants to transportation and regasification units - relatively more expensive.
Developing countries in the region often face difficulties securing adequate financing for energy infrastructure. In addition, the specialized technologies needed for modular LNG operations increase both complexity and cost. Countries with competing priorities across public services may find it difficult to allocate sufficient resources for small-scale LNG development, limiting growth and project implementation in some regions.
Key Market Trends
Growing Adoption of LNG for Power Generation: An important trend shaping the small-scale LNG market in the Middle East & Africa is its growing role in power generation. Many parts of the region face electricity access challenges, especially in rural and off-grid locations. LNG is increasingly viewed as a reliable, scalable, and environmentally friendly option to address these gaps.
Compared to traditional fuels like diesel or coal, LNG offers reduced carbon emissions and lower levels of air pollutants. This makes it well-suited for countries seeking to diversify their energy mix and enhance grid resilience. Nations such as Egypt and South Africa have begun implementing small-scale LNG projects to support decentralized power generation, particularly in remote areas not connected to the main grid.
The modular and flexible nature of small-scale LNG systems also allows for dynamic capacity scaling, which is advantageous in regions with seasonal or variable energy demands. As energy access becomes a development priority, the use of small-scale LNG in power generation is expected to expand rapidly across sub-Saharan Africa and other underserved markets.
Key Players Profiled in this Middle East & Africa Small-Scale LNG Market Report
Royal Dutch Shell plc Chevron Corporation TotalEnergies SE BP plc Eni S.p.A. Gazprom PJSC Novatek OAO Engie SA
Report Scope
In this report, the Middle East & Africa Small-Scale LNG Market has been segmented into the following categories:
Middle East & Africa Small-Scale LNG Market, by Type:
Liquefaction Terminal Regasification Terminal
Middle East & Africa Small-Scale LNG Market, by Mode of Supply:
Trucks Shipment & Bunkering Rail Tanks Pipeline Others
Middle East & Africa Small-Scale LNG Market, by Storage Tank Capacity:
Atmospheric Pressurized Floating Storage
Middle East & Africa Small-Scale LNG Market, by Application:
Transportation Industrial Feedstock Power Generation Others
Middle East & Africa Small-Scale LNG Market, by Country:
United Arab Emirates Saudi Arabia South Africa Turkey Qatar Nigeria Algeria Rest of Middle East & Africa
Key Attributes
CONTACT:
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