Europe's liquefied natural gas (LNG) imports fell by 19% last year to 135 billion cubic meters (bcm), marking their lowest level since 2021, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) on Tuesday.
The European LNG Tracker, released on Tuesday, revealed that the decline in LNG imports was driven by renewable energy investments, policies to reduce gas demand, and increased pipeline gas imports.
The continent's natural gas consumption dropped to its lowest level in 11 years, the report said.
Gas demand in Europe, which includes the 27 EU member states, the UK, Norway, and Türkiye, fell 20% from 2021 to 2024 and remained flat last year, despite a surge in November and December.
The report noted that European gas storage effectively absorbed supply shocks and bolstered supply security, especially in winter, with EU gas storage facilities ending the year at 72.16% capacity.
Despite a rise in gas demand at the end of last year, LNG imports in December were 3% lower than in the same period of 2023 and 17% lower than in December 2022.
- Lower demand threatens new LNG infrastructure
The report stated that terminal delays and indefinite postponements hindered the buildout of new LNG import capacity in 2024.
Europe's regasification capacity grew 6% in 2024, a sharp slowdown from previous years, with a 29% increase from 2021 to 2024, the report said.
Despite declining demand, Europe's LNG import capacity is on track to grow by 60% between 2021 and 2030, the report revealed.
The average utilization rate of EU terminals fell from 58% in 2023 to 42% in 2024. Continued infrastructure buildout could leave Europe's LNG infrastructure with a 30% average utilization rate by 2030, it added.
- Has LNG demand reached its peak?
The report noted that Europe's LNG imports fell by 19% last year to 135 bcm, while the EU's imports declined by 16% to 112 bcm.
In 2024, LNG supplied 30% of Europe's gas demand and 34% of the EU's, down from 37% and 40% in 2023, respectively.
The report noted that nearly half of the EU's LNG imports last year, about 50 bcm, came from the US, while imports from Russia increased by 18%.
France also overtook Spain as Europe's largest importer of Russian LNG in 2024, with an 81% rise.
The IEEFA forecasts a 17% increase in Europe's LNG imports to 158 bcm in 2025, but this remains below 2022 levels, suggesting that Europe has likely already passed peak LNG consumption.
The report emphasized that enhancing Europe's energy security and competitiveness requires strengthening an integrated gas network and minimizing individual countries' investment in new infrastructure.
By Murat Temizer and Handan Kazanci
Anadolu Agency
energy@aa.com.tr