Asia to dominate global LNG regasification capex and capacity additions to 2022

Asia is expected to be the major contributor to the growth of global LNG regasification capacity between 2018 and 2022, accounting for around 62% of the total global growth, according to market analyst GlobalData.

According to its latest analysis, global LNG regasification capacity is expected to grow by 48% from 43.7tn cf in 2018 to 64.6tn cf by 2022. Asia is expected to add around 12.4tn cf of regasification capacity during the outlook period. Within the region, India plans to add the highest capacity, of roughly 5.2tn cf by 2022, with the help of 23 planned and announced LNG regasification terminals. Capital expenditure (capex) for these terminals totals $6.8bn over the next four years.

China follows with a regasification capacity of 2.3tn cf from 15 planned and announced terminals by 2022. The country has the highest capex of $18.5bn for the period 2018–2022.

Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, comments: ‘Both India and China are driving the growth in global LNG regasification capacity due to their fast growing economies and thriving middle class population. The need to control growing pollution by replacing coal with natural gas is also driving natural gas demand in both countries, more so in China.’

The Middle East is identified as the second highest region in terms of regasification capacity additions. It is expected to add roughly 2.3tn cf by 2022. Within the region, Kuwait has the highest planned capacity of approximately 1.2tn cf by 2022 from a planned $3.2bn onshore regasification terminal. Turkey stands second in the region, with a planned capacity of 0.5tncf by 2022 from two upcoming terminals. Around $1bn capex is expected to be spent by the country during the outlook period.

In terms of regasification capacity, among the upcoming LNG regasification terminals, Al-Zour in Kuwait, and Yanam and Krishnapatnam Floating II terminals in India will lead with 1.2tn cf, 535.7bn cf and 487bn cf , respectively.

In terms of planned and announced capex, Al-Zour terminal in Kuwait will again lead with $3.2bn. Binhai in China and Wakayama in Japan will follow, with $2.2bn and $2bn, respectively during the outlook period.

Figure 1: Planned and announced LNG regasification capacity additions (in tn cf) in key countries, 2018–2022
Source: GlobalData