Europe has witnessed a significant drop in gas consumption, reaching its lowest level in a decade.
However, the influx of Russian Liquefied Natural Gas (LNG) to Spain has doubled. Since the onset of the Ukrainian conflict, European demand for gas has decreased by 20%, with expectations that LNG consumption on the continent will peak in 2025. This is the primary finding of the latest “European LNG Tracker” report.
According to the Spanish newspaper La Vanguardia, Europe has managed to navigate the energy crisis and is prepared to continue reducing gas usage.
This has been partly due to efficiency measures and the expansion of renewable energy sources.
The combined capacity of Europe’s LNG import terminals could be three times greater than the anticipated demand for LNG by 2030.
In 2023, Europe’s gas consumption plummeted to its lowest in ten years, with Germany, Italy, and the United Kingdom primarily driving the decrease in demand.
In the aftermath of the invasion, markets quickly reduced their reliance on Russian gas, and experts anticipated an increase in LNG imports in 2023 to compensate for the shortfall. Nevertheless, Europe’s demand for LNG remained stable year-on-year.
Despite this, countries continue to develop new LNG infrastructure. Since February 2022, eight import terminals have become operational, and an additional 13 projects are expected to be completed by 2030.
This expansion means that by the end of the decade, the total capacity of Europe’s LNG terminals could triple the expected LNG demand.
Anna Maria Galler-Macarowitz, a senior energy analyst for Europe, stated, “Two years after the Ukrainian war, the European energy system has become more diversified and flexible.
The crisis has been somewhat managed, with efficiency measures intensified and the installation of renewable energy sources and heat pumps accelerated.”
Plans are underway to add or expand 94 billion cubic meters of new LNG import capacity, expected to be operational by 2030.
This will increase Europe’s LNG capacity to 405 billion cubic meters, further enhancing the continent’s energy resilience and flexibility in the face of ongoing global challenges.
