PUBLISHER: The Business Research Company | PRODUCT CODE: 1795781
PUBLISHER: The Business Research Company | PRODUCT CODE: 1795781
A liquefied natural gas (LNG) virtual pipeline is a logistical and transportation system designed to deliver LNG to areas that lack access to conventional natural gas pipelines. It combines LNG transport and storage solutions to efficiently move and distribute LNG over distances and regions where constructing physical pipelines is impractical or economically unfeasible.
The main types of LNG virtual pipelines are ordinary and special types. The ordinary type refers to a standard system used for transporting and distributing LNG without relying on traditional fixed pipelines. Transportation methods for this system include truck, rail, ship, and barge. Key end users of LNG virtual pipelines include commercial, industrial, and transportation sectors.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a notable impact on the utilities sector, particularly across power generation, grid modernization, and renewable energy initiatives. Increased duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems are driving up both capital and operational expenses for utility companies, prompting many to delay projects or pass higher costs on to consumers through increased energy rates. The water and waste management sectors are similarly affected, as tariffs inflate the cost of essential machinery, piping, and treatment technologies. Moreover, retaliatory tariffs from key trading partners have disrupted the supply of critical raw materials-such as rare earth elements vital for clean energy technologies-posing further challenges to the shift toward sustainable energy. In response, the sector is increasingly focusing on domestic procurement, digital transformation, and efficiency-enhancing innovations to control rising costs while safeguarding energy reliability and meeting regulatory demands.
The LNG virtual pipeline market research report is one of a series of new reports from The Business Research Company that provides LNG virtual pipeline market statistics, including the LNG virtual pipeline industry global market size, regional shares, competitors with LNG virtual pipeline market share, detailed LNG virtual pipeline market segments, market trends, and opportunities, and any further data you may need to thrive in the LNG virtual pipeline industry. These LNG virtual pipeline market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The liquefied natural gas (lng) virtual pipeline market size has grown strongly in recent years. It will grow from $1.38 billion in 2024 to $1.45 billion in 2025 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to increase in demand for cleaner energy alternatives, rise in investments in LNG infrastructure, surge in supportive government policies, increase in the need for energy access in remote areas, rise in fluctuations in global oil prices, and the drive for energy diversification and security.
The liquefied natural gas (lng) virtual pipeline market size is expected to see strong growth in the next few years. It will grow to $1.86 billion in 2029 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to rising global natural gas demand, increasing supportive government regulations, increasing investments in LNG infrastructure, rising economic viability in remote areas, heightened environmental awareness, and expanding off-grid energy needs. Major trends in the forecast period include technological advancements in transportation, advancements in cryogenic storage technology, adoption of IoT for real-time monitoring, adoption of modular liquefaction units, development of hybrid renewable energy-LNG systems, and integration of blockchain for secure transactions.
The forecast of 6.5% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. The virtual LNG pipeline network may encounter cost pressures due to tariffs on mobile cryogenic storage tanks and vehicle-mounted regasification systems imported from Europe and China. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The rising demand for clean energy sources is expected to drive growth in the liquefied natural gas (LNG) virtual pipeline market. Clean energy sources include renewable and sustainable technologies with minimal environmental impact, such as solar, wind, hydroelectric, and geothermal power. The increasing interest in these sources is fueled by environmental concerns and the need to reduce reliance on fossil fuels due to their renewable nature and minimal ecological footprint. LNG virtual pipelines improve access to clean energy by transporting liquefied natural gas to regions without pipeline infrastructure, thereby lowering emissions and supporting cleaner energy alternatives. For instance, in February 2023, the Energy Information Administration (EIA), a US-based government agency, reported that by the end of 2022, the U.S. electric power sector had installed 73 gigawatts (GW) of solar photovoltaic (PV) capacity, with plans to increase this capacity by 43% (32 GW) in 2023. Additionally, wind and solar power together accounted for 14% of U.S. electricity generation in 2022, with projections indicating this share would rise to 16% in 2023 and 18% in 2024. This growing demand for clean energy sources will drive the LNG virtual pipeline market.
Leading companies in the LNG virtual pipeline market are advancing natural gas compression stations with innovative features to improve the efficiency and reliability of LNG transportation and distribution. Virtual pipelines enhance the performance, flexibility, and cost-effectiveness of natural gas compression stations, thereby strengthening the natural gas supply chain. For example, in August 2022, Sun Bridge Energy Services, a US-based oil and gas company, launched a new natural gas compression station in the Permian Basin. This station, with a capacity of 50 million cubic feet per day, supports oil and gas producers across the country in adopting dual-fuel engines for various operations, reducing emissions through cleaner fuel alternatives such as compressed natural gas. The station uses advanced composite tube technology known for its safety and reliability and is utilized by industry leaders such as SpaceX and Shell. Sun Bridge Energy Services' new compression station is a key component in developing a virtual pipeline for clean fuels in the Permian Basin, aiding the shift to more environmentally friendly energy sources for regional operators.
In January 2024, Nebula Energy LLC, a US-based oil and gas company, acquired a majority stake in AG&P LNG for $300 million. This acquisition is intended to bolster Nebula Energy's position in the LNG sector. The investment is expected to enhance AG&P LNG's capabilities in building downstream LNG infrastructure, addressing the growing energy needs in Asia, where LNG is increasingly seen as a crucial fuel for reducing carbon emissions. AG&P Terminals & Logistics Pte Ltd, based in the UAE, is a company specializing in virtual pipelines for the oil and gas industry.
Major companies operating in the liquefied natural gas (LNG) virtual pipeline market are ExxonMobil Corporation, TotalEnergies SE, General Electric Company, Honeywell International Inc., Cheniere Energy Inc., Linde plc, Siemens Energy AG, Air Liquide S.A., Mitsubishi Heavy Industries Ltd., Baker Hughes, McDermott International Ltd., Sempra Energy, Dominion Energy Inc., Fluor Corporation, Air Products and Chemicals Inc., IHI Corporation, Technip Energies NV, TechnipFMC plc, Wartsila Corporation, JGC Holdings Corporation, Black & Veatch Corp, MAN Energy Solutions, Gaztransport & Technigaz SA, Chart Industries Inc., GreenLine Mobility Solutions Limited
North America was the largest region in the LNG virtual pipeline market in 2024. The regions covered in the liquefied natural gas (LNG) virtual pipeline market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the liquefied natural gas (LNG) virtual pipeline market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The LNG virtual pipeline market consists of revenues earned by entities by providing services such as LNG transportation logistics, operational management of cryogenic storage and transport units, safety compliance, and technological support for efficient distribution. The market value includes the value of related goods sold by the service provider or included within the service offering. The LNG virtual pipeline market also includes sales of LNG storage tanks, specialized transport vehicles, and regasification facilities. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Liquefied Natural Gas (LNG) Virtual Pipeline Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on liquefied natural gas (lng) virtual pipeline market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for liquefied natural gas (lng) virtual pipeline ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The liquefied natural gas (lng) virtual pipeline market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.