LNG capacity consumption double growth

Longzhong information data shows that asAt the end of August, 13 new LNG (liquefied natural gas) plants were added in China, and the daily processing capacity continued to grow. According to the comprehensive data, in the first half of the year, China's LNG production capacity and consumption achieved double growth, entering a new stage of rapid market expansion and demand-driven. Can LNG supply and consumption capacity reach a new level in the second half of the year?

New facilities drive capacity increase

Data show that the current domestic newThe daily processing capacity of 13 LNG plants will increase by 11.15 million cubic meters. At present, the daily processing capacity of LNG has reached 184.65 million cubic meters, and the production capacity continues to grow.

"Now halfway through the third quarter, the LNG industry will also gradually enter the peak season of winter demand, with 21 new LNG plants expected to be added from September to the end of the year. The new plants are mainly concentrated in areas with abundant gas sources such as Xinjiang, Shaanxi, Shanxi and Sichuan, which are suitable for the construction of LNG production facilities for on-site processing and production to meet the growing demand." Longzhong information gas analyst Sun Yang said.

Under the "double carbon" goal, as the demand for clean energy increases, the demand for LNG as an important energy supplement will continue to rise, which will further promote the expansion of production capacity.

It is understood that in order to improve the natural gas transportation and unloading capacity, since this year, manyLNG receiving ports have been expanded. In January, berth 2 of Qingdao LNG receiving station was put into use, and the monthly receiving frequency of the whole receiving station was increased from 12-13 to 16-17. Shenzhen Dapeng Bay LNG Hub Port is building new LNG storage tanks, special berths for ships and working ship terminals, which are expected to be completed by the end of this year.

"Domestic LNG prices have remained relatively high this year, attracting accelerated commissioning of a number of new LNG units, which will be concentrated in this year. LNG production is expected to reach 25.86 million tonnes this year, up 20.95 per cent year-on-year. Capacity utilization is expected to be 59.59 per cent, up 5.51 per cent year-on-year. The commissioning of new units and the increase in domestic gas have driven a steady rise in LNG production." Sun Yang said.

Strong growth in the automotive market

New liquefaction facilities boostLNG capacity, while consumption growth benefited from expansion in demand for vehicles and peak demand for urban gas. Longzhong Information predicts that domestic LNG consumption will reach 39.21 million tons this year, up 18% year on year. Among them, the strong growth momentum of LNG heavy trucks has become an important reason for the rise in LNG consumption, and the increase in demand for vehicles in the future will continue to promote the growth of LNG consumption. It is expected that the annual road freight volume will basically return to the level of 2019.

"Since last year, the spread between LNG and diesel has widened significantly, highlighting the economic advantages of LNG. This change has prompted LNG heavy trucks to gradually replace diesel heavy trucks, stimulating a continued increase in the number of LNG heavy trucks. Demand for LNG vehicles is expected to continue to grow in the second half of the year, and the market share of LNG heavy trucks will further increase." Sun Yang said.

"Since the beginning of this year, the LNG market for trucks and ships has benefited from policy-driven and cost advantages, and has indeed maintained a good growth trend. For example, in March-May, LNG heavy truck sales exceeded 20000 vehicles for three consecutive months. From previous data, it can be seen that the month when natural gas heavy truck sales exceeded 20000 vehicles had a total of about 7 times, of which 3 times occurred in the first half of this year." An LNG practitioner in Zhejiang said, "It is not a local fire, it is a common phenomenon."

Market advisory body gas warehouse data also show that the first half of the yearThe total consumption of LNG sectors was 20.1695 million tons, up 20.86 percent from the first half of 2023. Among them, the consumption of the vehicle and ship sector is not only the sector with the largest LNG consumption, but also the sector with the fastest growth rate in the same period last year, with a year-on-year growth rate of 26.35.

Supply and consumption steady progress

FutureCan LNG supply and consumption continue to grow?

Duan Zhaofang, director of the Natural Gas Market Research Institute of the China Petroleum Economic and Technological Research Institute, said that in terms of supply capacity,In 2023, there were as many as 12 LNG enterprises in China, an increase of 4 over the same period last year, of which Xintian Green Energy Co., Ltd. and other enterprises imported for the first time. In addition to the "three barrels of oil" outside the second echelon of LNG imports of 4.9 million tons, an increase of 47.4, accounting for 6.9 of the country's LNG imports, an increase of 2 percentage points over the previous year. In addition, by the end of 2023, the total national receiving capacity will reach 116.1 million tons/year. The main body of LNG imports continues to diversify to further protect LNG supply capacity.

From the perspective of consumption, with the continuous advancement of urbanization, the coverage of urban gas pipelines has been further expanded, the penetration rate of urban gas has steadily increased, and the population using gas has maintained rapid growth. The state continues to carry out comprehensive air pollution control action, according to local conditions to promote clean heating to support the steady growth of heating gas. VehicleBoth better LNG economy and downstream logistics demand will support the rapid growth of LNG demand for vehicles.

Sun Yang said that the futureThe task of LNG peak shaving and supply protection is increasing, and the new LNG liquefaction devices in several regions will assume the task of peak shaving reserve, providing a more solid peak shaving infrastructure for urban gas. Also because most of the domestic city gas enterprises do not have a supporting LNG device, the arrival of the winter storage procurement period will boost the demand for LNG city gas peak.

Source: China Energy News