GlobalData: Russia, China to lead in small-scale LNG liquefaction

Russia and China are expected to lead the global small-scale LNG liquefaction capacity additions by 2025, according to the analytics company GlobalData.

Togehter, this two coutries will be contributing 43 per cent of the total small-scale liquefaction capacity additions between 2021 and 2025.

This is published in GlobalData’s report ‘Global Small-Scale LNG Liquefaction Capacity and Capital Expenditure Outlook, 2021–2025 – Russia and China Lead Global Capacity Additions’.

The report shows that Russia is expected to take first place globally with a new build small-scale LNG liquefaction capacity addition of 2,840 kilotonnes per annum (ktpa) by 2025, while expansion projects account for the rest with 100 ktpa.

“In Russia, 16 new build small-scale LNG liquefaction projects are likely to start operations by 2025. Out of these, three are planned with identified development plans and the remaining 13 are early-stage announced projects. Portovaya is the largest upcoming project in the country with a capacity of 1,500 ktpa. Russia is adding significant small-scale LNG capacity to meet the growing domestic demand, such as for powering locomotives and exports to countries such as Poland,” commented Bhargavi Gandham, oil and gas analyst at GlobalData.

China is identified to be the second-highest contributor with a total capacity of 2,810 ktpa by 2025. All the capacity additions in the region are through new build projects. The primary driver of the small-scale liquefaction capacity in China is ‘Xi an’ project with a capacity of 1,400 ktpa. This project is accounting for about 50 per cent of the total capacity additions.

The third is Oman with 2,000 ktpa by 2025. Among the new build projects in the country, Port of Sohar and Oman III are the largest, each with a capacity of 1,000 ktpa. The terminals are expected to start operations in 2024 and 2023.