Small-Scale LNG Market Size, Share, Growth, Trends, and Global Industry Analysis: By Storage Capacity (≤30,000 gallons, 30,000–70,000 gallons, ≥70,000 gallons), By Application (Industrial, Power Generation, Transportation (Marine, Road), Commercial & Residential, Others), By End User (Utilities, Oil & Gas, Mining, Manufacturing, Others) and Region Forecast 2020-2031

Small Scale LNG Market size was valued at US$ 12.8 billion in 2024 and is projected to reach US$ 21.0 million by 2031 at a CAGR of 7.3% from 2025-2031. Moreover, the U.S. market is projected to grow at 7.9% CAGR over the forecast period. The market refers to the production, storage, transportation, and distribution of LNG in smaller volumes, typically less than 500,000 tonnes per annum. This market caters to areas and applications where large-scale LNG infrastructure is not feasible, including remote industrial operations, off-grid power generation, transportation fuel (especially for marine and heavy-duty road transport), and localized utility supply.

The small-scale LNG market is gaining traction globally due to its flexibility, lower environmental footprint, and ability to serve remote and underserved regions. As governments and industries push for cleaner alternatives to diesel and heavy fuel oil, small-scale LNG offers a viable solution for reducing carbon emissions, especially in transport and off-grid energy sectors. The market is driven by advancements in modular LNG infrastructure, favourable regulatory support, and the expansion of LNG fueling stations.

Facts & Figures

• Projected Global Liquefaction Capacity Growth: Global small-scale LNG liquefaction capacity is expected to grow from approximately 35,390-ktpa in 2022 to 44,740 ktpa by 2026, a 26% increase over four years. The Asia region alone is set to add 3,850 ktpa, followed by 2,380 ktpa in Africa
• China Leading New Additions: By 2026, China is projected to lead globally, contributing 3,810 ktpa of new small-scale LNG liquefaction capacity. Significant projects include an estimated 1,400 ktpa unit in Xi’an scheduled for commissioning in 2023
• Deployment of Modular Mini-LNG Plants: Modular mini-LNG plants often containerized systems producing 4,000 to 20,000 gallons of LNG per day are operational in remote industrial and transport applications, enabling decentralized supply at stranded gas wells or truck-fueling stations

Key Developments

• In March 2025, the U.S. Department of Energy removed regulatory constraints around LNG ship-to-ship bunkering. The update clarified that such transfers within U.S. ports are not considered exports under the Natural Gas Act, easing operational complexities. This change is expected to significantly boost small-scale LNG usage in marine transport, especially as the global LNG-powered fleet is projected to exceed 1,200 vessels by 2028.
• In May 2025, Indonesia’s state utility PLN EPI initiated a $1.5 billion project to deploy small-scale LNG across 41 power plants in Eastern Indonesia. The goal is to replace diesel with LNG in remote regions through a hub-and-spoke distribution model. This major infrastructure investment supports 2,148 MW of power capacity and is expected to commence phased operations from 2026 onwards.
• In July 2025, TotalEnergies and shipping giant CMA CGM established a 50:50 joint venture in Rotterdam to develop LNG bunkering services. The venture will deploy a 20,000 m³ LNG bunker vessel and aims to supply up to 360,000 tonnes of LNG annually by 2040. The project underlines Europe’s commitment to cleaner maritime fuels and energy diversification. 

Small-Scale LNG Market  Segmentation:

Based on the storage capacity

• ≤30,000 gallons
• 30,000–70,000 gallons
• ≥70,000 gallons

Based on storage capacity, the ≥70,000 gallons segment is anticipated to lead the small-scale LNG market in the coming years. This dominance is primarily driven by the growing demand from large-scale industrial operations and power generation facilities that require higher fuel volumes for continuous and efficient operations. These larger storage units reduce the frequency of refueling, lower transportation costs per unit, and improve overall energy logistics. Additionally, advancements in cryogenic tank technology and the establishment of centralized LNG hubs are making high-capacity storage more viable and cost-effective. As energy needs expand, this segment is expected to witness substantial investments and adoption.

Based on the application

• Industrial
• Power Generation
• Transportation (Marine, Road)
• Commercial & Residential
• Others

Based on application, the industrial segment is anticipated to lead the small-scale LNG market. This growth is fueled by the increasing demand for cleaner and cost-effective energy sources across manufacturing, mining, and chemical processing sectors. Industries located in remote or off-grid areas are particularly turning to small-scale LNG to ensure a reliable and uninterrupted power supply. Unlike diesel or coal, LNG offers lower emissions and operational costs, making it a preferred choice for companies aiming to meet environmental regulations and sustainability goals. The rising need for energy-intensive operations and the push toward decarbonization further solidify the industrial segment’s market dominance.

Based on the end user

• Utilities
• Oil & Gas
• Mining
• Manufacturing
• Others

Based on end user, the utilities segment is anticipated to lead the small-scale LNG market. This dominance is driven by the rising demand for clean and reliable energy in regions lacking access to large-scale pipeline infrastructure. Utilities are increasingly adopting small-scale LNG to supply natural gas to remote residential areas, support grid stability, and provide backup power during peak demand. With global emphasis on reducing carbon emissions, LNG offers a cleaner alternative to coal and diesel in power generation. Government incentives and favourable policies further encourage utilities to invest in decentralized LNG systems, positioning the segment at the forefront of market growth.