Editorial Comment

Adrienne Blume, Managing Editor

Worldwide, small-scale LNG liquefaction capacity is expected to expand by 30% over the next 4 yr, increasing from 33.9 MMtpy in 2021 to 43.92 MMtpy in 2025. Asia will account for 2.82 MMtpy of the new capacity, followed by North America with 2.48 MMtpy.

By country, Russia is set to lead the small-scale LNG capacity expansion by adding 2.94 MMtpy at up to 16 newbuild facilities and expansion projects by 2025. Close behind, China and Oman are expected to add 2.81 MMtpy and 2 MMtpy, respectively. While the majority (2.84 MMtpy) of Russia’s capacity additions will be newbuilds and the remaining capacity will come from expansions, all of China’s capacity additions will be from new plants.

In India, domestic cryogenic storage and regasification solutions provider INOXCVA is working with Japanese Mitsui & Co. to establish a virtual pipeline to service growing demand for LNG in the country. The partnership will establish small-scale LNG infrastructure, including logistics and receiving facilities at the customer end, to offer LNG access to customers not presently connected to pipelines.

Although Europe’s preference for renewable energy is growing in light of its net zero carbon target, the region is still looking to LNG to supplement its energy needs. Stricter marine emissions regulations are encouraging the use of small-scale LNG as a bunker fuel. Despite sustained low oil prices and market uncertainty due to the COVID-19 pandemic, a significant increase has been seen in small-scale LNG projects in the region. GP


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