Global regas capacity being built to hit 10-year high
The amount of regasification capacity, plants that bring LNG back to a gas, currently under construction globally will rise to a 10-year high this year, research and consultancy firm Wood Mackenzie said.
Regasification capacity being built may rise to 144 million tons per year, led by projects in China, Wood Mackenzie said.
This includes 33 new terminals totalling 92.8 mmtpa that are under construction and another 51 mmtpa of capacity to be added to existing terminals, WoodMac said.
China, the world’s second largest LNG importer after Japan, accounts for over one-third, or 52.6 mmtpa, of the new capacity, including 10 new terminals.
India is building five new terminals with a capacity of 20 mmtpa while Europe could add 13 mmtpa of additional capacity from expansion projects until 2025 across the Netherlands, Poland, France, Greece and the United Kingdom.
While the coronavirus pandemic has hampered construction and could lead to potential delays of new projects, seven new regas terminals are expected to make a final investment decision (FID) this year, WoodMac said.
This includes Cyprus LNG and China’s Yantai LNG and Tianjin LNG, which announced FID in the first half of 2020.
“We think a further four terminals have a good chance of reaching FID before the end of the year: Alexandropoulos LNG, in Eastern Greece, Hong Kong LNG, Vila do Conde terminal from Golar, located in North Brazil and Puerto Sandino, in Nicaragua,” WoodMac Research Director Giles Farrer said.
Southeast Asia has also been a focus for regas development with Myanmar and Vietnam completing terminals in record time to stave off power shortages, Wood Mackenzie’s Asia LNG Research Analyst Otavio Veras said.
Specifically, Veras noted Hai Linh Company’s terminal in Vung Tau, Vietnam, and a small-scale terminal in Thanlyin, Myanmar, which received its first cargo from Malaysia’s Petroliam Nasional Bhd (Petronas) this year.
Reporting by Jessica Jaganathan; Editing by Christian Schmollinger
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