European LNG Imports Drop 19% in 2024

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--European liquefied natural gas (LNG) imports dropped by almost a fifth in 2024, with demand falling to an 11-year low.

The record drop in demand contrasts sharply with the largest LNG infrastructure buildout in the region, currently underway. Industrial Info is tracking 222 LNG-related projects worth US$22 billion across Europe, which has been determined to end its reliance on Russian gas imports since Russia invaded neighbouring Ukraine three years ago. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. Germany accounts for the largest share of new investment at more than US$6.2 billion, followed by Italy with US$5 billion and Spain with US$2.8 billion. Countries that have installed or expanded terminals since 2021 include Germany, the Netherlands, Turkey, Italy, France, Belgium, Greece, Finland, Poland and Croatia.

The updated European LNG Tracker from the Institute for Energy Economics and Financial Analysis (IEEFA) found that there was a 19% decline - 32 billion cubic metres (Bcm) - in 2024. The continent's gas consumption fell by 20% overall between 2021 and 2024 thanks to renewables deployment and demand reduction policies. Half of the European Union's LNG regasification terminals had a utilisation rate below 40% last year. The countries that reduced their LNG imports the most last year were the U.K. (47% year-on-year), Belgium (29%) and Spain (28%). At the same time, it noted "the flurry of investment in new import infrastructure." Buildout slowed last year, it found, but current plans will see Europe's LNG import capacity grow by 60% between 2021 and 2030. This is despite LNG demand being expected to fall further by 2030. The IEEFA forecasts that this could result in Europe's 2030 regasification capacity having a 30% average utilisation rate.

"EU efforts to curb gas demand have been crucial for maintaining the continent's security of energy supply," said Ana Maria Jaller-Makarewicz, lead energy analyst, Europe, at IEEFA. "However, as EU gas demand was flat last year, more work is needed to diversify energy supplies and reduce Europe's exposure to LNG market volatility. Doubling down on new LNG terminals without taking into account demand trends raises the risk of overinvestment and infrastructure being underutilised as the energy transition accelerates." Almost half (46%) of Europe's 2024 LNG imports were from the U.S., down 18% on 2023. Most surprising was the amount of LNG still sourced from Russia, which has had oil and gas exports stopped by the EU as part of wide-ranging sanctions. LNG, however, has not yet been included. European and EU imports of Russian LNG grew by 12% and 18%, respectively, last year, despite the EU's target of ending its reliance on Russian fossil fuels by 2027. "A third of EU imports of Russian LNG were spot trades in 2024. Member states should prioritise phasing out these flows, which aren't subject to long-term contracts," said Jaller-Makarewicz. France, Spain and Belgium accounted for 85% of Europe's imports of Russian LNG last year. IEEFA estimates that EU countries spent €6.3 billion (US$6.6 billion) on Russian LNG between January and November 2024.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).