EU Sees Record LNG Imports in 2019

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--There were record imports of liquefied natural gas (LNG) into the European Union (EU) in 2019.

The region imported 108 billion cubic meters (Bcm) for the year, up 75% from 2018 and accounting for 27% of total gas imports and 22% of the EU's gas consumption, according to the latest European Commission report on the gas market. In fourth-quarter 2019, EU LNG imports showed a significant increase, up 42% year-on-year, with the U.S. becoming the most important LNG supplier to Europe for the quarter, accounting for a quarter of imports.

The report showed that in 2019 Qatar was the leading provider of LNG to the EU, supplying 30 Bcm, followed by Russia (21 Bcm) and the U.S. (17 Bcm). It stated: "In 2019 an increasing competition could be observed between the U.S. and Russia in LNG supply to the EU. Prices in different regions (e.g.: between Europe and Asia) remained aligned amid well-supplied global LNG markets, enabling plentiful LNG influx to Europe. The increase in European LNG imports was also helped by decreased demand for LNG in many Asian markets amid increasing global LNG supply."

In the fourth quarter, the U.K. became the biggest LNG importer (7 Bcm), ahead of France (6 Bcm) and Spain (5.4 Bcm). The average EU LNG regasification terminal utilisation rate in the EU stood at 57% in fourth-quarter 2019, while in 2019 it was 51% on average, significantly up from 26% measured in 2018. For the year, the biggest LNG importers in the EU were Spain (22.4 Bcm), France (22.1 Bcm), the UK (18 Bcm), Italy (13.5 Bcm), the Netherlands and Belgium (8.6-8.8 Bcm). The monetary value of LNG imports in the EU in 2019 amounted to an estimated 16.2 billion euro ($17.7 billion), slightly up from 15.4 billion euro ($16.8 billion) in 2018, as a result of increasing import volumes and decreasing average annual prices.

"The uptick in natural gas supply was mainly driven by competitive LNG imports, resulting in the lowest wholesale gas prices on the European hubs since 2009," the EC reported. "Low gas prices combined with increasing emission allowance prices resulted in an increasing competitiveness of gas vis-à-vis coal in power generation."

The EU increased its LNG imports from the biggest supplier Qatar by 10 Bcm (from 19.8 Bcm to 29.8 Bcm) in 2019, compared to 2018. However, at the same time LNG imports from Russia went up by 15 Bcm (from 6.5 Bcm to 21.4 Bcm), and from the U.S. by almost 14 Bcm (from 3.3 Bcm to 17.2 Bcm). These three sources altogether provided an increase of 39 Bcm in 2019, out of the total LNG import increase of 48 Bcm in the EU. Both Trinidad and Tobago and Nigeria added to the EU LNG imports (by 3.5 Bcm and 2.4 Bcm in 2019); however, their impact on the European LNG market was less significant.

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