10 Nov 2021
Posted in Oil & Gas
Market deregulation and rising demand drive China to dominate LNG regasification additions in Asia through 2025, says GlobalData
China is expected to drive liquefied natural gas (LNG) regasification capacity additions in Asia between 2021 and 2025, contributing about 36% of the region’s total capacity additions by 2025. Ever-increasing natural gas demand, need to reduce carbon emissions and liberalization of domestic gas market (leading to growth in investments in regasification segment from non-government companies) are driving China’s regasification capacity additions, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Global LNG Industry Outlook to 2025 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Terminals’, reveals that China is likely to witness a total LNG regasification capacity additions of 5,956 billion cubic feet (bcf) by 2025. Of this, 4,380 bcf of capacity would be from the new-build terminals while the rest of the capacity is from the expansion of the existing regasification terminals.
Teja Pappoppula, Oil and Gas Analyst at GlobalData comments: “Most of the capacity additions in China are through the new-build projects with the planned Tangshan II terminal being the largest with a capacity of 584 bcf. The Caofeidian Xintian LNG Co Ltd-operated terminal is expected to become operational in 2022.”
Among the expansion projects, the Qingdao Expansion II regasification terminal accounts for most of the expansion capacity additions in China with 341 bcf of capacity expected to be added in 2023.
The third highest contributor in the country is the announced Zhoushan III terminal which is likely to add a capacity of 341 bcf in 2024. China Petroleum & Chemical Corp will be the operator of this regasification terminal.