Development situations of LNG terminals in China

In this paper, the factors influencing the development of LNG markets in the future were analyzed by combining with the development situations of China's natural gas industry and the relevant policies, laws and regulations. It is favorable that LNG markets develop stably with the support of national laws, regulations and policies for the natural gas industry, and that the market demand of natural gas is impelled by the marketization of natural gas price, and in the long term, the natural gas market in China is of immense potential. However, some adverse factors exist. First, the increasing speed of the natural gas market demand decreases with the new normal in economic transformation. Second, the growth of natural gas demand is adversely influenced by the continuous falling of global oil price and the lagged adjustment of natural gas price. And third, the competition between gas sources becomes more and more intense with the change of supply situations. The business of LNG terminals is faced with both opportunities and challenges. First, LNG resource is sufficient as the natural gas liquefying capacity increases all over the world. Second, LNG spot goods and short-term trade flourish and LNG import price declines. And third, LNG peak shaving is in great demand and the cost is relatively low. Accordingly, it is recommended to develop China's LNG terminals by dominantly expanding the existing terminals, increasing storage volume and liquefying capacity properly and participating in market peak shaving actively.