2/3 of global regas capacity to come from 33 new LNG terminals
BAKU, Azerbaijan, Sept.9
By Leman Zeynalova – Trend:
Two thirds of the global regas capacity will come from 33 new liquefied natural gas (LNG) terminals, Trend reports with reference to Wood Mackenzie.
“Following on from the projects which have already taken final investment decisions (FID), more developments are waiting in the wings for approval to move to the construction phase. Three new regas terminals have received FIDs this year, one in Europe and two in China. We believe there are four more terminals which have a good chance of reaching FID before the end of 2020, one in Greece, another in Hong Kong and two further South American developments, in Brazil and Nicaragua. New terminals are also proposed for China, Australia, Vietnam, and Ecuador.
“Even in the current environment, global regas is expanding. The amount of new capacity under construction this year – 144 million metric tonnes per annum (mmtpa) – is equivalent to 40 percent of the 2020 global LNG supply. Two-thirds of this capacity will come from 33 new LNG terminals, 10 of them based in China (which is the fastest-growing LNG demand centre), while the remaining are expansions of existing terminals.
“This is not to say coronavirus has not had an impact. Many completion dates have been set back because of the pandemic. In China, for example, the completion dates for expanding two facilities due this year (Caofeidian and Rudong terminals) have slipped to 2021. The pandemic has also hit construction of pipeline infrastructure in South Asia, reducing available capacity at recently commissioned terminals.
“With 166 proposed LNG regas terminals at the pre-FID stage, Wood Mackenzie’s LNG project regas tracker evaluates each one, ranking it against the six key criteria which must be reached before an FID is taken: participation; end-user market; development concept and engineering; environmental and regulatory approvals; financing; and LNG supply,” said Wood Mackenzie.
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