China’s regasification capacity expansion has been slow in 2020, compared to 2019, capping the potential growth in the country’s LNG imports. Eight LNG projects, including expansions and new terminals, were expected to start up this year. However, six of them have already pushed back to 2021. These includes four new LNG terminals, (Jiangyin terminal in Jiangsu, Chaozhou project in Guangdong, and Damaiyu and Dushan facilities in Zhejiang) and two expansions, at Guanghui Energy's Qidong terminal and Sinopec's Qingdao terminal. These projects have a combined additional import capacity of 10.8 million tons/year.
Meanwhile the other two projects also face delays. Construction at PetroChina's Tangshan LNG phase 3 project faces delays due to the COVID-19 pandemic. Shenergy Group and CNOOC also struggle with the same trouble at their Shanghai LNG phase 2 projects. The two projects could add China’s LNG import capacity by 6.5 million tons/year from the current 74.55 million tons/year. China expanded LNG import capacity by 12.75 million tons/year and 5.5 million tons/year in 2018 and 2017, respectively.
Assuming no capacity addition, China is expected to receive 19.4 million tons of LNG, still higher than a year earlier. The country imported 32.3 million tons of LNG in October 2019-March 2020, with terminal utilisation rate at 88%. The rate fell slightly to 87% in the summer months of April-August, still higher than 80% a year earlier. LowLNG prices and a government’s proposal to replace household heating coal with cleaner sources of energy are expected to support LNG imports in the coming months.
