Europe’s LNG imports hit a three-year low in 2024, according to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA). The continent’s liquefied natural gas imports fell by 19% to 135 billion cubic meters (bcm), marking the lowest level since 2021.
The decline in LNG imports was driven by several factors, including investments in renewable energy, policies aimed at reducing gas demand, and increased pipeline gas imports. Europe’s natural gas consumption dropped to its lowest level in 11 years, with gas demand falling 20% from 2021 to 2024.
Despite the decrease in imports, Europe’s LNG import capacity is projected to grow by 60% between 2021 and 2030. This expansion comes amidst declining demand, raising concerns about potential overcapacity. The average utilisation rate of EU terminals fell from 58% in 2023 to 42% in 2024, and continued infrastructure buildout could leave Europe’s LNG infrastructure with a 30% average utilisation rate by 2030.
The IEEFA forecasts a 17% increase in Europe’s LNG imports to 158 bcm in 2025, but this remains below 2022 levels, suggesting that Europe may have already passed peak LNG consumption. The report emphasises that enhancing Europe’s energy security and competitiveness requires strengthening an integrated gas network and minimising individual countries’ investment in new infrastructure.
In the UK, LNG imports hit a record high of 25.6 bcm in 2022, up 74% from the previous year. The country’s significant regasification infrastructure allowed it to serve as a land-bridge for increased natural gas exports to Europe while supporting domestic gas demand.
As Europe continues to navigate its energy transition, the balance between LNG infrastructure development and declining demand will be crucial in shaping the continent’s energy landscape in the coming years.
