Overcapacity risk in LNG import terminal growth

摘要

THE construction of liquefied natural gas terminals has become something of a business fad in China as the country's gas players, spurred by government coal-to-gas initiatives, rush to build more LNG-importing capacity. The trend runs the risk of overinvestment and overbuilding, however, and could drive down operational efficiency. National oil companies, power utilities, town gas distributors and private gas players have been rushing to build LNG terminals after the National Development & Reform Commission (NDRC) delegated power to local authorities to endorse LNG terminal construction a few years ago.