5 Major LNG Projects to Keep an Eye on in 2022


5 Major LNG Projects to Keep an Eye on in 2022

Source: Energy Transition

Increasing demand has been driving up LNG prices since 2021. Experts expect that this demand will continue to grow, and without new LNG infrastructure, demand will outstrip supply. Luckily, several major LNG projects are in progress, and more are expected to follow.

14 March 2022 – by Eric Koons

    Several major LNG projects are currently underway in 2022 to produce LNG. These are coming at a crucial time when experts predict a steadily increasing demand for LNG and a need to raise Liquefied Natural Gas production, storage and export capacity.

    How is LNG Made?

    LNG is produced by cooling natural gas until it becomes a liquid and is primarily used for transport. Once it is liquified in LNG trains, natural gas takes up only 1/600th of its original volume. Condensing natural gas, transporting it, and re-vaporising it is not easy. It requires expensive infrastructure and highly specialised systems.

    What is an LNG Terminal?

    An LNG Terminal refers to an onshore installation that acts as a local storage and transport hub for LNG between land and sea. As a result, these terminals are usually quite large and near major ports or high-density residential areas.

    LNG Terminal Process

    LNG Terminals often have harbours to offload LNG from ships into designated storage on-land. From here, LNG is transported to a plant for processing into energy or sent to other hubs or storage facilities using pipelines, trains, or trucks.

    LNG Terminal
    Source: LNG Prime

    LNG terminals are essential infrastructure that helps determine supply and regulate prices. Having several hubs increases capacity while ensuring a more stable natural gas supply. As demand for LNG has grown, so has the need for more terminals. Moreover, the LNG projects in 2022 across the globe that focus on major regional hubs to quickly, efficiently and cheaply provide natural gas hope to meet growing demand.

    How Long does it take to build an LNG Terminal?

    Depending on surrounding infrastructure and supply chains, the average LNG terminal takes 3-5 years to complete. This means that the LNG projects starting now may not be operational until 2027. The LNG terminals coming online in 2022 and 2023 began construction around 2019. This was before rising prices and demand that are currently gripping the market. Considering how high LNG prices have been over the past year and the projected doubling of LNG demand by 2040, the need for new LNG terminals has never been higher.

    However, as a recent study pointed out, the build times for LNG terminals has also lengthened. It concluded that: “Over the past 10-15 years, the trend has been for longer LNG liquefaction project execution times, with the average contractual schedule duration of projects under construction at any specific point of time increasing from around 46 months in 2004 to 55 months as of 2018.” 

    As a result, while countries are more insistent on rapidly building these terminals, longer construction times could lead to supply bottlenecks.

    5 Top Liquefied Natural Gas Projects to Look Forward to in 2022

    Several major LNG projects are underway globally, with most earmarked to come online in the next few years. However, a few will be operational before then. Here are five major LNG projects to keep an eye on in 2022.

    1. North Field Expansion LNG Project – Qatar

    The North Field Expansion Project is the world’s largest LNG project. When it comes online in 2025, it will make Qatar the largest LNG exporter globally, with a LNG production capacity of 110 million tons per year (tpy). Additionally, this LNG project will also use renewable energy and carbon capture to limit emissions.

    2. Jafrabad Floating Storage and Re-gasification Unit – India

    Set to boost India’s LNG shipping capacity by 12%, the Jafrabad FSRU will challenge Singapore for Asia’s LNG hub crown. It will process and ship 47.5 million tonnes per annum across the region. This makes it one of the boldest LNG projects on the market in 2022.

    3. Rio Grande LNG Plant – United States

    Proponents claim it will produce the “greenest” LNG in the world. The Rio Grande LNG in Brownsville, Texas, represents the next step in LNG infrastructure. It will produce 27 million tpy, and the LNG plant is said to reduce emissions by over 90% with carbon capture storage. The LNG project is expected to be operational in 2023.

    4. Arctic LNG 2 – Russia

    Projected to produce 19.8 million tpy by 2025, Novatek’s Utrenneye onshore field will come online in 2023. Additionally, it will employ new technologies to make the natural gas liquefaction process more efficient. This LNG project is part of a more extensive trans-arctic LNG shipping development by Novatek.

    5. Brunsbüttel LNG Terminal – Germany

    Heavily reliant on imports for over 90% of its domestic natural gas consumption, Germany is seeking to become more self-reliant with the construction of its Brunsbüttel LNG Terminal in 2023. As a result, the terminal will have an operational capacity of 5.1 million tpy and be one of many LNG projects to come.

    Many major LNG projects are currently underway globally as the world looks for a temporary fuel to transition to a low-carbon renewable future. Countries worldwide hope that new infrastructure will help meet growing demands and shift their energy portfolios.

    LNG Projects 202

    by Eric Koons

    Eric is a passionate environmental advocate that believes renewable energy is a key piece in meeting the world’s growing energy demands. He received an environmental science degree from the University of California and has worked to promote environmentally and socially sustainable practices since. Eric’s expertise extends across the environmental field, yet he maintains a strong focus on renewable energy. His work has been featured by leading environmental organizations, such as World Resources Institute and Hitachi ABB Power Grids.

    Read more

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