European LNG imports surge

European LNG imports spiked in January-May this year on the back of high gas prices and as European countries look to slash reliance on Russian gas pipeline supplies.

Europe’s (the European Union and the United Kingdom) LNG imports set an all-time historical record high in April 2022, averaging 16.5 billion cubic feet per day (Bcf/d) monthly and exceeding 19 Bcf/d on some days in April, according to a report by the US Energy Information Administration.

LNG imports increased in 2022 because natural gas storage inventories were at historically low levels from fall 2021 through spring 2022, the agency said.

Traditional sources of natural gas (and some substitute fuels) delivered by pipeline have not been meeting Europe’s energy needs, and spot natural gas prices at major European hubs have generally been higher than spot prices in other markets, it said.

The higher spot prices in Europe have resulted in more imports from suppliers with destination flexibility in their contracts, particularly from the US.

During the first four months of 2022, the US exported 74 percent of its LNG to Europe, compared with an annual average of 34 percent last year, EIA previously said.

From January through May 2022, LNG imports into the EU and the UK averaged 14.9 Bcf/d, EIA said, citing data from Cedigaz.

This is 5.9 Bcf/d or 66 percent more than the annual average in 2021 and 4.7 Bcf/d more than the pre-pandemic high of 10.3 Bcf/d in 2019, according to Cedigaz data.

European LNG imports surge
Data source: Cedigaz
Note: Others includes Poland, Lithuania, Croatia, Greece, Finland, Sweden, and Malta. Europe refers to the 27 countries of the European Union and the United Kingdom.

LNG terminal utilization varies

Currently, 14 countries in Europe have LNG import facilities; however, utilization of these facilities varies by region, EIA said.

The northern and southern parts of the European natural gas pipeline grid are not fully integrated.

However, a more fully integrated pipeline grid, which can transport large volumes of natural gas to major load centers and storage facilities across Northern Europe, links LNG import terminals in Northwest Europe.

Also, LNG import facilities in Southern Europe primarily serve local and regional markets, the agency noted.

From January through May 2022, deliveries of regasified LNG to the pipeline grid in Spain, Portugal, and Italy in Southern Europe averaged 4.6 Bcf/d.

LNG import terminals in the region reached a 58 percent utilization rate during the period, it said.

During the same period, volumes of regasified LNG delivered to France, Belgium, and the Netherlands in Northwest Europe averaged 5.8 Bcf/d, exceeding the nameplate capacity of regasification facilities and reaching an all-time peak utilization of 115 percent in April 2022, EIA said.

Further increases in LNG imports limited

Utilization rates of regasification terminals can exceed the standard nameplate capacity of 100 percent during periods of peak use.

Further increases in LNG imports into Northwest Europe would be limited by the availability of regasification capacity in the region, the agency said.

The UK has the second-largest LNG regasification capacity in Europe (4.7 Bcf/d), and it can export up to 2.5 Bcf/d of natural gas to the EU via the Interconnector pipeline into Belgium and the BBL pipeline into the Netherlands.

Regasified LNG volumes in the UK averaged 2.9 Bcf/d from January through May 2022, and regasification facilities ran at a 63 percent utilization rate, up from 30 percent last year, EIA said.

Exports from the UK via interconnecting pipelines to the European Union have run at close to maximum rates since March 2022, it said.

Most Popular

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

Shell ships first LNG Canada cargo

LNG giant Shell and its partners have shipped the first cargo produced at the LNG Canada facility in Kitimat, on the west coast of Canada.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

Atlantic LNG shipping rates down, Pacific rates up

Atlantic spot LNG shipping rates decreased to $48,750 per day this week, while Pacific rates rose compared to the week before.

US weekly LNG exports reach 30 cargoes

US liquefied natural gas (LNG) plants shipped 30 cargoes during the week ending June 25. According to the Energy Information Administration, pipeline deliveries to the LNG terminals rose compared to the prior week.

Coastal Bend LNG plans large Texas export plant

Coastal Bend LNG said it had initiated development of a 22.5 million ton per annum (mtpa) natural gas liquefaction and export facility on the Texas Gulf Coast.

Spain was top destination for US LNG supplies in April

Spain was the top destination for US liquefied natural gas cargoes in April, according to the Department of Energy’s LNG monthly report.