GlobalData : China to drive Asia’s small-scale LNG liquefaction capacity additions through 2026, says GlobalData

06 May 2022
China to drive Asia's small-scale LNG liquefaction capacity additions through 2026, says GlobalData Posted in Oil & Gas

China is expected to dominate Asia's small-scale LNG liquefaction capacity additions, contributing about 99% of the capacity additions between 2022 and 2026, says GlobalData, a leading data and analytics company.

GlobalData's report 'Small-Scale LNG Liquefaction Capacity and Capital Expenditure (CapEx) Forecast by Region, Countries and Companies including details of New Build and Expansion (Announcements and Cancellations) Projects, 2022-2026' reveals that China is expected to witness a total capacity addition of 3,810 thousand tonnes per annum (ktpa), of which the entire capacity would be from new build projects.

In China, six new-build small-scale LNG liquefaction projects are likely to start operations by 2026, of which four are planned with identified development plans and the remaining two are early stage announced projects. Xi'an terminal is the largest new build small-scale LNG liquefaction project in the country, with a capacity of 1,400 ktpa. It is followed by Jiaxing, with a capacity of 1,000 ktpa.

Bhargavi Gandham, Oil and Gas Analyst at GlobalData, comments: "Low initial investment costs and the growing use of LNG as a vehicular fuel would drive the demand for small-scale LNG liquefaction in the country."

GlobalData expects Bangladesh and Vietnam to contribute the remaining capacity additions in Asia by 2026. Bhola is the only terminal accounting for the entire small-scale LNG liquefaction capacity of 30 ktpa in Bangladesh. It is expected to start operations in 2024.

Ho Chi Minh is the only terminal accounting for the entire small-scale LNG liquefaction capacity of 10 ktpa in Vietnam. It is expected to start operations in 2022.