Report: European LNG imports fell 19% in 2024

LNG imports to Europe saw a significant decline in 2024, dropping by 19% as the continent’s gas consumption reached its lowest point in 11 years.

The decrease is attributed to increased renewable energy production and EU efforts to curb gas use, according to the latest European LNG Tracker from the Institute for Energy Economics and Financial Analysis (IEEFA).

The IEEFA says its “market-based research shows how the rise of the new energy economy, where renewable energy sources are steadily eroding reliance on fossil fuels, makes financial sense for investors, governments, businesses, communities and ratepayers.”

The report found LNG demand in Europe in 2024 fell to its lowest level since 2021. The UK, Belgium, and Spain were the largest contributors to the decline, reducing imports by 47%, 29%, and 28%, respectively.

The decrease in LNG imports contrasts with a surge in investments in new import infrastructure. Although the pace of infrastructure expansion slowed in 2024, Europe’s LNG import capacity is projected to grow by 60% between 2021 and 2030, despite an anticipated further drop in demand. IEEFA forecasts that Europe’s regasification capacity by 2030 could see an average utilization rate of just 30%.

Several European countries, including Germany, the Netherlands, Turkey, Italy, France, Belgium, Greece, Finland, Poland, and Croatia, have either installed or expanded LNG terminals since 2021. However, with lower demand, half of the EU’s LNG import terminals operated at less than 40% capacity in 2024, including some newly built facilities.

In terms of sourcing, the US remained Europe’s largest LNG supplier, accounting for 46% of imports. However, US LNG exports to Europe declined by 18% in 2024. In contrast, imports of Russian LNG saw an uptick, rising by 12% for Europe and 18% for the EU. This increase came despite the EU’s goal of phasing out reliance on Russian fossil fuels by 2027.