China to dominate LNG regasification additions in Asia through 2025

China is expected to drive LNG regasification capacity additions in Asia between 2021 and 2025, contributing about 36% of the region’s total capacity additions by 2025, according to the latest analysis from GlobalData.

Ever-increasing natural gas demand, the need to reduce carbon emissions and liberalisation of the domestic gas market (leading to growth in investments in the regasification segment from non-government companies) are driving China’s regasification capacity additions, says the market analyst.

It forecasts that China is likely to witness total LNG regasification capacity additions of 5,956bn cf by 2025. Of this, 4,380bn cf of capacity would be from newbuild terminals, while expansion of existing regasification terminals will account for the remainder.

Teja Pappoppula, Oil and Gas Analyst at GlobalData, comments: ‘Most of the capacity additions in China are through newbuild projects, with the planned Tangshan II terminal being the largest with a capacity of 584bn cf. The Caofeidian Xintian LNG-operated terminal is expected to become operational in 2022.’

Meanwhile, the Qingdao Expansion II regasification terminal accounts for most of the expansion capacity additions in China, with 341bn cf 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 about 341bn cf of capacity in 2024. It will be operated by China Petroleum & Chemical Corporation.