Global small-scale liquefied natural gas (SSLNG) liquefaction capacity is anticipated to increase considerably by 2030 due to the escalating demand for flexible, decentralised energy solutions in remote and off-grid locations. Favourable government policies are enhancing the accessibility and appeal of SSLNG for transportation and industrial applications.
Nigeria is poised to spearhead this global growth, due to a combination of factors such as broadening energy access in isolated areas and measures to curtail gas flaring by capitalising on natural gas that was previously vented. Additionally, SSLNG aligns with the nation’s transition to cleaner fuel sources and is bolstered by favorable government policies and investment incentives.
In Nigeria, the Rumuji and Ologbo projects are notable for their contributions to SSLNG liquefaction capacity additions by 2030. The Rumuji facility, which commenced commercial operations in 2018 with a capacity of 820 thousand tonnes per annum (ktpa), is set for expansion by 2027. It is expected to increase its capacity by an additional 1,090 ktpa, further monetising the country’s stranded gas reserves. Greenville LNG Co Ltd holds full ownership of the plant and also operates it.
The Ologbo project is expected to begin commercial operations in two phases in 2025 with a total capacity of 750 ktpa. This development will contribute to the augmentation of the domestic gas supply in Nigeria. African Infrastructure Partners LLC has full ownership of the project and is the proposed operator.
In China, the Shaanxi Gas Group Co Ltd has a 100% stake and is also the designated operator of the Xi’An SSLNG liquefaction plant in China. The plant is likely to commence operations in 2026 with a capacity of 800 ktpa. It will use an all-electric motor compressor to reduce emissions and produce low-carbon LNG.
The Port Hedland project in Australia is also likely to begin commercial operations in two phases with a cumulative capacity of 1,000 ktpa by 2030. The Port Hedland port, a major exporter of iron ore globally, will benefit from the plant’s provision of LNG as fuel for iron ore carriers, thereby reducing emissions. Pilbara Clean Fuels Proprietary Ltd owns the entire equity in the project and is the proposed operator.
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By GlobalDataFurther details of global SSLNG liquefaction capacity analysis can be found in GlobalData’s new report: https://www.globaldata.com/store/report/small-scale-lng-liquefaction-capacity-and-capital-expenditure-market-analysis/.
