Frost & Sullivan: LNG to Increase Gas Turbine Demand in Asia-Pacific
The Asia-Pacific gas turbine market will sustain its growth momentum as concerns on global warming and greenhouse gas emissions force utilities and independent power producers to opt for environmentally friendly power generation technologies. The availability of liquefied natural gas (LNG) supplied through both pipelines and shipment will increase gas turbine demand in the long term, although volatile prices will affect market revenues.
New analysis from Frost & Sullivan, Asia-Pacific Gas Turbines Market, finds that the market earned revenues of approximately US$10.99 billion in 2011 and estimates this to increase to US$13.16 billion in 2016.
Stringent emission regulations and international agreements on generating power from coal, which is considered the most carbon-intensive source, have led to the stable growth of the gas turbine market.
“Gas turbines’ high efficiency, operational flexibility, and low capital costs will ensure their steady adoption,” saidFrost & Sullivan Energy & Environmental Research Analyst Subha Krishnan. “Ongoing research activities to further enhance gas turbine efficiency will aid market development.”
The expansion of the Asia-Pacific oil and gas sectors has boosted the sale volumes of gas turbines. Countries in the region are particularly turning to LNG to meet the escalating energy demand, increasing the market’s potential to an extent. However, countries such as Thailand and the Philippines that do not have gas resources prefer to import coal as it is less-expensive, thereby reducing scope for gas plants.
The wide use of carbon capture and storage technology to capture, transport, and store carbon dioxide gases from industrial and power generating processes also allows large-scale fossil fuel power plants to remain operational, thus reducing investments in gas. Volatile gas prices, which are linked to the fluctuations in oil price, increase risks and further dissuade potential investors.
“Advancements in technology are crucial to reduce turbine costs and emissions, especially of combined cycle gas turbines, which will be the dominant gas-based technology for intermediate and base-load power generation,” noted Krishnan. “In addition, manufacturers need to focus on research and development to improve the fuel flexibility and carbon capture capabilities of their equipment.”
LNG World News Staff, March 01, 2013