Midstream
Key LNG projects
domestic gas consumption and boosting the construction of LNG import infrastructure. There are significant LNG stories beyond China. In Brazil, as droughts impact the output of numerous hydro power plants in the country, gas-fired power plants linked to LNG regasification terminals are playing an essential role in ensuring energy security by providing baseload generation capacity. Meanwhile in Thailand, the country has recently announced it will scrap plans to build 3GW of coal-fired power capacity in favour of two 700MW gas-fired plants fed by LNG imports. Looking beyond power generation, LNG has a major role to play in decarbonizing the marine fuels segment while green hydrogen scales up. LNG is also an attractive alternative to oil products for road transport vehicles due to lower CO2 emissions. 30
An array of LNG projects has been announced or are currently under development across the globe. EICDataStream, the EIC’s global projects tracking database, currently monitors 296 liquefaction and regasification projects worldwide, requiring a combined investment of US$825bn. The US market leads in terms of LNGrelated capital expenditure projects, capturing close to US$250bn of the global investment with a planned addition of 377mtpa of liquefaction capacity by the end of the decade. Highlights include the US$24.7bn Driftwood LNG project in Louisiana as well as Sempra’s US$10bn Port Arthur LNG terminal in Texas. A final investment decision (FID) for the two projects is expected to be announced in 2022. Looking at the regasification segment, Asian countries present a robust pipeline of onshore LNG receiving terminals as well as FSRU projects. Vietnam is a notable example, with 11 such projects totalling an investment of US$24.7bn. As previously noted, China is another key LNG regasification market, with a US$12.7bn project pipeline.
Looking ahead Energy analysts agree that natural gas demand will remain resilient in the short to medium term, with LNG playing a key role when it comes to supporting decarbonisation strategies across the world. However, as a number of countries push forward with
