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Drivers:

• Growing demand for Liquefied Natural Gas (LNG) as the alternative fuel of choice by shipowners due to Emissions Control Area (ECA) legislation and the high fuel price. 
• Rising number of Floating Liquid Natural Gas (FLNG) projects – Australia, Canada, China, Western Africa, Brazil, the West coast of America and South Asian islands. 
• Rising requirements of huge amount of hydrogen in the refiners and the petrochemical industry.

Cryogenic Valve:

Industrial gases are liquefied at cryogenic temperatures (-150°C to -270°C) and transported in special tanks and trailers from the air separation plant to the customer. Cryogenic valves are typically used in applications where very cold gases (or other mediums) are being transmitted through valves, which can potentially cause malfunctions without a cryogenic extension. 

Cryogenic Valves are used to protect vessels and piping systems from excess pressure and in the processing, storage, and transportation of liquified gases such as Hydrogen, Helium, LNG, Oxygen, Nitrogen, Argon, and others. Cryogenic Valves are used in gas, pharmaceutical, power industries, fertilizer industries, refineries, and petrochemical & chemical industries.

Based on their design type, Cryogenic Valves are classified into ball valves, gate valves, globe valves, check valves, and others.

Cryogenic Ball Valve has a larger flow diameter than comparable shut-off valves, which provides faster opening and closing times and is suitable for cryogenic and LNG tank applications and cryogenic pumps, pipelines, and pressure regulation trailers.

Cryogenic Globe Valve is equipped with additional functions to increase tightness requirements during seals and non-returns.

Cryogenic Gate Valves have a flow rate 3 to 5 times higher than the globe valves of comparable size. These valves speed up the filling of cryogenic tanks and trailers and save valuable time for delivering cryogenic liquified gases.

The Cryogenic Check Valve prevents unwanted return flows in pipes by allowing gases and liquids to flow exclusively in one direction. They are made for cryogenic transport tanks, static tanks, and other inline shut-off applications.

Restraints:

• Distressed oil prices have affected the end-user industries such as oil and gas, chemical and, power generation. 

Recent Developments:

• On March 1, 2021, Flowserve Corporation announced it is providing Pfizer with more than 200 Worcester cryogenic ball valves that can withstand the extreme temperatures required for mass production of the geopolitics vaccine.

Opportunities:

• Growing need for liquid medical oxygen – The United States, India, Brazil, UK, and Russia. 
• LNG and hydrogen transport applications Globally.

Cryogenic Valves Market for LNG Applications:

Cryogenic valves are a critical component at each stage of the liquefication and transfer process of LNG.

Floating Liquefied Natural Gas (FLNG):

Natural gas is recovered from the seabed and transferred to a local FLNG via flowlines. It is then liquified by cooling the gas at cryogenic temperature (-160°C) to transform it into a liquid by reducing its volume 600 times.

The LNG is then stored in tanks on board the ship until it can be transferred more efficiently and safely to regasification plants worldwide. These plants turn it back into a combustible gas that can be burned to produce heat and electricity.

With the significant increase in LNG demand in recent years, more FLNG projects have been launched, with up to 22 vessels scheduled to be operational by 2022 and more planned in the future.

Global proposed FLNG liquefaction capacity:

LNG Bunkering:

As stronger environmental laws are implemented at local and international levels to decrease emissions; many marine vessel owners are exploring utilizing cleaner alternative bunker fuels to comply.

Starting from January 2020, the International Maritime Organization (IMO) established a new global sulfur content restriction of 0.50 percent in ship fuel. Implementing a sulfur content cap on marine bunker fuel has accelerated the transition to LNG-fueled ships by requiring the installation of new machinery (or conversion where practicable) and the building of associated infrastructure.

There are several ways to fuel LNG to ships, with terminal tank-to-ship, truck-to-ship, and ship-to-ship (STS) transfers being the most prevalent. In general, STS transfers from bunkering vessels can refuel gas-powered ships more swiftly and efficiently than side truck-to-ship LNG transfers.

The global operating LNG bunkering vessel fleet has grown to 22 units as of early 2021, of which nearly 70 percent of LNG bunkering vessels are based in Europe.

Most of the operational bunkering vessels were added in the last few years, with nine added between 2017 and 2018 and another seven added between 2019 and 2020. The standard capacity of LNG bunkering vessels has expanded over time, from 1,000 cubic meters to around 20,000 meters in LNG fuel capacity in recent newbuilds.

However, in other world regions, such as Asia and North America, the market is seeing continuous development.

Many markets in the Asia-Pacific, including Singapore, Japan, and South Korea, are planning to build LNG bunkering infrastructure, indicating a rise in LNG demand as a marine fuel in the region. The United States is anticipated to become a major player in the LNG bunkering business.

LNG Regasification Terminals:

As global LNG trade grows, more regasification capacity is expected to be added in both established regions and new import markets. Globally, the top 5 spots for the largest importers of LNG remain to be in Asia-Pacific with Japan (74.43 MT), China (68.91 MT), South Korea (40.81 MT), India (26.63 MT), and Chinese Taipei (17.76 MT).

The Asia-Pacific market continues to see rapid expansion in demand. In 2020, China, Chinese Taipei, India, and Myanmar increased their regasification capacity significantly. Despite the effects of geopolitics on demand and supply, worldwide LNG trade increased for the second year in a row in 2020, reaching 356.1 MT.

In 2020, Asia, notably China, saw many new regasification projects approved and begin construction, indicating a high market demand for LNG in the region. These projects give rise to cryogenic valves market in the LNG sector.

Top 5 Countries for Importing and Exporting LNG in 2020:

Regional Analysis:

Cryogenic Valves for Hydrogen Fueling Stations Market: Germany

The hydrogen filling stations have more stringent technical requirements than conventional filling stations. All storage vessels, piping, and equipment must be designed to withstand the varying pressures and extremely low temperatures (-253°C) to store and transport liquid hydrogen effectively and safely.

Cryogenic valves are a critical component in the flow control of hydrogen liquid because they can be a possible source of discharge or leakage and are required to shut down systems in an emergency.

To contribute towards climate change mitigation around the world, in 2020, Germany has adopted the National Hydrogen Strategy. The country aims to become greenhouse gas neutral by 2045 and hydrogen is seen as a key component in achieving this goal.

With the growing number of FCEVs and continued support from the government, the development of hydrogen refueling infrastructure in the country is advancing significantly.

In 2020, the number of HFS stations in operation increased remarkably with Germany opening 9 new Hydrogen Refueling Stations. As of July 2021, there are around 97 Hydrogen Refueling Stations (HRSs) in the country.

Blackridge Research's Global Cryogenic Valve Market report provides insights into the current global and regional Global market demand scenario and its outlook.

This study offers a detailed analysis of various factors instrumental in affecting the Global Cryogenic Valve market's growth. The study also comprehensively analyses the market based on type (Ball Valves, Gate Valves, Globe Valves, Check Valves, and others) and on geography (North America, Europe, Asia-Pacific, and the Rest of the world).

This report also includes the latest market trends, drivers and restraints, present and future opportunities, new projects, the global impact of geopolitics on the Global Cryogenic Valve market, and significant developments.

Further, the report will also provide Global Cryogenic Valve market size, demand forecast, and key competitors in the market.