Regasification industry to be led by Asia with capacity growth
According to international analytics and consultancy firm GlobalData, Asia are expected to head up global LNG regasification, with newbuilds already planned and announced that will support the industries capacity growth between 2019 and 2023, with a 63% share.
GlobalData revealed in their recent report that the total regasification capacity of planned and announced terminals in Asia is expected to be 11.6 Tcf by 2023. The report, named ‘Global LNG Regasification Industry Outlook to 2023 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Regasification Terminals,’ also stated that of the 11.6 Tcf growth, 8.2 Tcf will be available for early-staged announced projects, with the remaining 3.4 Tcf to be available for projects that have received requirement approvals for development.
Oil and Gas Analyst at GlobalData, Soorya Tejomoortula, stated that:
“In Asia, a total of 62 planned and announced terminals are expected to start operations by 2023. Of these, two announced terminals, Matarbari in Bangladesh and Yanam in India, have the highest capacities of 548 Bcf and 536 Bcf, respectively.”
The Middle East is expected to have the second highest regasification capacity growth. By 2023 the regasification capacity in the region is set to be 2.3Tcf. Within this, planned projects are set to obtain 1.4Tcf with the further 0.8Tcf capacity set to be used for early-stage announced projects.
Soorya Tejomoortula also added:
“In the Middle East, two planned regasification terminals, Al-Zour in Kuwait and Bahrain Floating in Bahrain, are expected to start operations by 2023. The Al-Zour terminal is the largest planned regasification project globally with a capacity of 1.2Tcf.”
It was also announced earlier in August 2019 that the low LNG spot prices are having little impact in the Asian markets, with peak summer demand giving a boost in Asian LNG spot prices, while boosting Europe too.
International news organisation Reuters explained that other regions should follow Asia and Europe in that LNG producers need to boost demand and sell their product with more flexible pricing, although the economics of existing and new ventures may be undermined if a significant shift is marked.