China’s LNG regasification segment dominates midstream projects

The 341 billion cubic feet Zhoushan III project will start operations in 2026.

The liquified natural gas (LNG) regasification segment will lead the oil and gas midstream projects in China between 2024 and 2028, projected to account for 47% of the pipeline during the period.

In a report, GlobalData said the LNG segment comprises 46 out of the 97 midstream projects that are expected to start operations from 2024 to 2028.

This will be followed by transmission pipelines at 20, and oil storage with 16 projects.

“Despite growing domestic natural gas production, China continues to rely on gas imports, especially LNG imports, to meet its ever-growing gas demand. As a result, there will be a strong growth in LNG regasification terminals in China by 2028,” Bhargavi Gandham, Oil & Gas Analyst at GlobalData, said.

One of the upcoming LNG regasification projects is the Zhoushan III in 2026. To be operated by the China Petroleum & Chemical Corp., the project has a capacity of 341 billion cubic feet.

Gandhan also added that aside from LNG import terminals, China is also expected to see significant project starts in the natural gas transmission pipelines and underground gas storage segments on the back of the government’s support on boosting the share of natural gas in its energy mix.

“This growth aligns with the country’s objectives to mitigate carbon emissions by transitioning from coal to gas and becoming carbon neutral,” the report read.