China is expected to commence the operations of 70 midstream oil and gas projects from 2021 to 2025. This accounts for about 21 per cent of the total upcoming midstream project-starts in Asia by 2025, GlobalData finds.
GlobalData, the leading Data and Analytics Company, made these known in its latest report, ‘Global Midstream New Build and Expansion Projects Outlook, 2021-2025 – Transmission Pipelines Dominate Global Midstream Project Starts’ released today, October 13, 2021.
In the report, GlobalData revealed that out of 70 projects expected to commence operations in China, Liquefied Natural Gas (LNG) regasification projects reaching 28 (40%); liquids storage projects would reach 20 (29%); transmission pipelines would be at 15 (21%); underground gas storage (UGS) at six (9%); and one (1%) would be a gas processing project.
Bhargavi Gandham, Oil & Gas Analyst at GlobalData, commented: “China is one of the largest oil and gas consuming nations, and a leading importer of LNG globally. As a result, the country continues to witness strong growth in the midstream sector, especially in the LNG regasification and storage segments.”
Liquids Storage Projects to be second largest after LNG Regasification
Furthermore, GlobalData noted that liquids storage projects would constitute around 29 per cent of all midstream project-starts in China during the period 2021 to 2025.
Among the upcoming liquids storage projects, the Zhoushan V Expansion project leads with a storage capacity of 131.94 million barrels and costing US$5,145.7 million. The project is presently in the feasibility stage and is expected to start operations in 2025.
Considering the projects under transmission pipelines segment, Power of Siberia 1 (China Section-II) gas pipeline project leads with a length of 1,509 km and costing US$4,268 million. According to GlobalData, the project is presently in the construction stage and is most likely to start operations in 2025.
In the gas storage segment, the Liaohelei 61 project dominates with a gas processing capacity of 406.1 billion cubic feet (bcf). China National Petroleum Corp. is the operator and 50 per cent equity holder of the project, which is expected to start operations by 2022.
In addition, Jidong II and Jidong I are the other major projects that collectively account for 146 billion cubic feet (bcf) of gas processing capacity expected to become operational during 2021 to 2025.
Globally, up to 1,174 upcoming midstream projects are expected to start operations during the 2021 to 2025 outlook period. Of these, 1,073 represent new build projects as well as 101 projects expansions of already existing projects.
In the midstream sector, the transmission pipelines segment is expected to witness the start of operations of the highest number of projects globally. In total, transmission pipelines projects will number 509 during the 2021-2025 period. Liquids storage and gas processing segments follow with 276 and 146 projects, respectively.