China Expands NGL Storage Capacity Driven by Petrochemical Investments
China's NGL storage capacity has risen to 8.5 million tons, reflecting a 9% increase due to expanding petrochemical production. This growth is primarily fueled by ethylene steam cracker projects, which account for 61% of new storage capacity.
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China's natural gas liquids (NGL) storage capacity increased to 8.5 million tons, up from 7.8 million tons in 2024. The expansion is attributed to 13 new LPG and ethane storage projects, totaling 721,300 tons, with operations commencing from late 2026 to 2028.
Ethylene steam cracker projects are central to this growth, with four storing a combined 441,000 tons of ethane, driving demand for imports, which rose to 4.8 million tons in the first half of 2025. Investments from companies like Secco and Huatai in ethane storage facilities are notable.
Additionally, new LPG infrastructure is being developed, including terminals in Ningbo and Cangzhou, with a total of 110,000 tons of new propane capacity planned. This trend highlights China's strategic shift toward ethane to enhance feedstock efficiency.
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