North America will spearhead the growth in the global LNG liquefaction industry, while Asia will dominate growth in the global LNG regasification industry between 2018 and 2022, according to leading data and analytics company GlobalData.
The company’s report: ‘Global Planned LNG Industry Outlook to 2022’ forecasts global planned LNG liquefaction capacity to grow more than fifteen times – from 30.3 million tonnes per annum (mtpa) in 2018 to 466.4 mtpa in 2022. The global planned LNG regasification capacity is also expected to grow more than five times – from 3.7 trillion cubic feet (tcf) in 2018 to 20.9 tcf in 2020. Globally, 62 new build liquefaction terminals and 108 new build regasification terminals are expected to commence operations by 2022.
India leads Asia and globally, with the highest planned regasification capacity additions of 5.1 tcf by 2022. The country has a capital expenditure (capex) of around $7bn on the upcoming projects. Bangladesh will be the next highest country globally with planned regasification capacity additions of 2.3 tcf by 2022. The country is expected to contribute roughly $3.7bn or 5% of the global capex for the development of new build regasification terminals.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, explains: “India is driving the growth in global LNG regasification capacity due to its rapidly growing economy and thriving middle class population. The need to control growing pollution by replacing coal with natural gas for power generation is also driving natural gas demand in the country.”
In North America, both the US and Canada will drive the liquefaction capacity growth and capex. The US is the global leader in terms of both liquefaction capacity additions and capex by 2022. The country has the highest planned liquefaction capacity additions of 258.8 mtpa by 2022 and capex of $167.3bn, approximately 35% of the total global capex on upcoming liquefaction terminals.
Canada will be the second highest country in the world, both in terms of planned liquefaction capacity additions and capex by 2022. The country has planned liquefaction capacity additions of 101.1 mtpa and capex of $105.3bn, for the outlook period.
Tejomoortula adds: “Both the US and Canada are adding massive LNG liquefaction capacities, redrawing the global LNG landscape. Booming natural gas production, especially from shale, is driving the North American LNG exports.”
Australia will be the third highest in terms of both planned liquefaction capacity additions and capex for the period 2018 to 2022. The country will have liquefaction capacity additions of 24 mtpa, and is expected to spend about $43.7bn on the upcoming terminals.
In terms of largest liquefaction terminals in the outlook period by capacity, Orca Floating in Canada is the top planned LNG liquefaction terminal in the world with capacity of 24 mtpa. The terminal is expected to start operations by 2019 with capex of $19.7bn.
As for regasification terminals, Al-Zour terminal in Kuwait is the top LNG regasification terminal with a capacity of 1.1 tcf. The terminal is expected to come online by 2021 with total capex of $3.3bn.
Information based on GlobalData’s report: Global Planned LNG Industry Outlook to 2022 – Capacity and Capital Expenditure Forecasts with Details of All Planned Terminals
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