The European Union’s liquefied natural gas (LNG) import terminals are experiencing reduced use as a result of falling demand for gas in Europe, according to the Institute for Energy Economics and Financial Analysis (IEEFA) on Thursday 12 September.
According to the institute’s latest data, in the first half of 2024, EU gas consumption fell by 3%, while LNG imports fell by 20% in Europe and 11% in the EU compared with the first half of 2023.
This trend is set to continue, according to IEEFA, which estimates that “the continent has likely already passed peak LNG consumption”, with forecasts indicating a 37% drop in LNG demand by 2030.
The average utilisation rate of the EU’s LNG terminals fell from 62.8% in the first half of 2023 to 47.2% in the first half of 2024.
Despite previous efforts to build more LNG infrastructure following Russia’s invasion of Ukraine, several countries have delayed or cancelled projects.
However, IEEFA reports that many European countries are still planning to invest in new LNG import infrastructure, despite the fall in demand.
The institute predicts that, by 2030, “three quarters of the continent’s LNG import capacity could be unused”.
In addition, the institute notes that Europe increased its imports of Russian LNG by 11% in the first half of 2024 compared to the previous year, but highlights the new EU sanctions that will come into force in March 2025 (see EUROPE 13438/3) and the end of the transit agreement via Ukraine (see EUROPE 13480/2), following which it is “unlikely that the continent’s security of supply will be affected”.
To see the analysis: https://aeur.eu/f/dfq (Original version in French by Pauline Denys)