Europe’s declining gas demand raises doubts about the rush to build new LNG import terminals, although there is still room to increase imports from the US, as urged by former President Donald Trump.
European gas demand is at its lowest level in 11 years, leading to a 16% drop in LNG imports into the EU last year compared to 2023. This shift in the market could have far-reaching geopolitical consequences.
With pipeline gas supplies from Russia drastically reduced since the invasion of Ukraine in 2022, the EU has compensated by boosting LNG imports, particularly from the US, although controversially, some have continued to come from Russia.
However, a report from the Institute for Energy Economics and Financial Analysis (IEEFA) revealed on Tuesday that the EU’s regasification terminals – where LNG is converted back into gas for pipeline distribution – were operating at just 42% capacity on average, with some barely in use.
Since February 2022, the EU has added approximately 50 billion cubic metres of annual import capacity, mainly in Germany, the Netherlands, Italy, France, and Finland. Yet, according to IEEFA, if current plans and demand trends continue, only about 30% of this capacity is likely to be utilised by 2030.
via Euronews