As we approach the end of another summer here in the northern hemisphere, thoughts are turning to the darker (and colder) nights ahead (I have already spotted Christmas decorations in some of my local shops – in August!). Thankfully, there is little concern about the lights going out here in Europe during the winter 2024/25 season, as the continent sits in a comfortable position in terms of its energy storage. In its ‘Europe gas and LNG markets short-term outlook Q2 2024’ report, Wood Mackenzie forecasts that European gas storage will reach 100% by the end of September and remain full until the end of October.1 The data and analytics company expects an additional 4 million tpy of floating storage to also be accumulated.
The report states that low European demand for gas has kept storage levels at record highs this year, despite the fact that the continent has imported 11 million tpy less LNG through May 2024, compared to the same period in 2023. This lower demand depressed prices and pushed LNG into Asia, with imports to China up 22%. Wood Mackenzie anticipates an increase in gas demand of 7 billion m3 in 2025 compared to 2024, if there is a return to normal weather dynamics over the coming winter, and due to a strengthening macroeconomic outlook across Europe.
Wood Mackenzie expects Asia to absorb most of the new LNG that is coming online, although Europe is likely to import an extra 4.2 million tpy compared to 2024. More than 40 million tpy of LNG supply growth is expected in 2026, with Asian demand once again expected to account for a significant amount of this new supply, but Europe will absorb almost 20 million t of additional LNG in 2026, which will put downward pressure on prices.
This issue of Tanks & Terminals takes a deeper dive into Asia’s oil and gas storage sector. Contributing Editor, Ng Weng Hoong, guides us through the latest developments in the region, shining a spotlight on a number of countries including India, China, Singapore and Papua New Guinea. This issue also includes detailed technical articles and case studies on a number of interesting topics. Starting on p. 11, Trinity Consultants considers the implementation and ramifications of the US Environmental Protection Agency (EPA)’s finalised proposed revisions to emissions standards for the gasoline distribution industry. Other articles cover the importance of gas venting emissions treatment and vapour recovery technology, level measurement techniques, actuator maintenance, corrosion protection, pipeline technology, robotics, cybersecurity, and much more. I hope you enjoy this issue, and if you are picking up a copy at the AFPM Summit or the NISTM’s 17th Annual National Aboveground Storage Tank Conference & Trade Show, I invite you to register for a free subscription to the magazine by visiting: https://www.tanksterminals.com/magazine/tanks-terminals/register/
- ‘Higher LNG prices to limit Asian demand and turbocharge European gas storage levels’, Wood Mackenzie, (12 June 2024), https://www.woodmac.com/press-releases/higher-lng-prices-to-limit-asian-demand-and-turbocharge-european-gas-storage-levels/
