The US remained the largest LNG supplier to Europe in 2023

Qatar and Russia remained the second and third-largest LNG suppliers to Europe last year. Qatar supplied 14% (2 billion ft³/d), and Russia supplied 13% (1.8 billion ft³/d). Combined, the US, Qatar, and Russia supplied three-quarters of Europe’s LNG imports in 2022 and 2023.

Europe’s LNG import, or regasification, capacity is on track to expand to 29.3 billion ft³/d in 2024, an increase of more than one-third compared with 2021, according to data from the International Group of Liquefied Natural Gas Importers (GIIGNL) and trade press. Russia's invasion of Ukraine in February 2022 prompted European countries to halt most imports of natural gas from Russia via pipeline and re-activate development of previously dormant regasification projects as well as develop new projects. Germany is adding the most LNG regasification capacity in Europe: developers added 1.8 billion ft³/d in 2023 and plan to add 1.6 billion ft³/d in 2024. In 2022 and 2023, the Netherlands, Spain, Italy, Finland, and France increased their regasification capacity by a combined 3.2 billion ft³/d. In 2024, the EIA expects Belgium, Greece, Poland, the Netherlands, and Cyprus to add a combined 1.8 billion ft³/d of new capacity.

In 2023, Europe’s LNG imports averaged 14.7 billion ft³/d, essentially unchanged from 2022, despite an estimated 4.2 billion ft³/d of regasification capacity additions. Mild 2022 – 2023 winter weather in the Northern Hemisphere reduced heating demand and contributed to Europe ending the winter heating season with record-high natural gas in storage. LNG imports into Europe established new records from June 2022 through April 2023, when imports peaked at 18.1 billion ft³/d. Imports then declined in subsequent months because storage inventories were full, international LNG prices were relatively high, and energy conservation measures significantly reduced natural gas consumption.

In 2023, France, Spain, the Netherlands, and the UK combined accounted for almost two-thirds (9.3 billion ft³/d) of Europe’s total LNG imports. Germany imported its first LNG in January 2023 and ended the year accounting for 4% (0.6 billion ft³/d) of Europe’s total imports. The US supplied more than 80% of Germany’s LNG imports.

Natural gas prices at the Title Transfer Facility (TTF) in the Netherlands – a large natural gas trading hub in Europe – started to increase in  2H21, and by 2022, averaged US$40.30/million Btu annually. TTF prices reached nearly US$100.00/million Btu in August 2022, significantly higher than the 2019 – 2020 average of US$3.86/million Btu amid concerns over natural gas supplies for the winter given the uncertainty over the future of piped natural gas from Russia. In January 2023, however, TTF prices began to decline from a monthly average of US$20.43/million Btu to US$10.06/million Btu by May as natural gas balances in Eu-rope continued to improve. From June 2023 through the end of the year, TTF prices averaged US$11.89/million Btu, falling below LNG prices in East Asia.

Read the article online at: https://www.lngindustry.com/special-reports/01032024/the-us-remained-the-largest-lng-supplier-to-europe-in-2023/