When Russia slashed European gas exports in 2022, Europe’s regas terminal infrastructure suddenly became a critical focus for security of supply.
Russian pipeline supplies to Europe fell from around 30% of the European supply mix (pre Ukraine invasion) to around 5% in 2023.
This drove a sharp pivot in European supply towards LNG and a recognition that regas capacity was inadequate, especially in markets that were most dependent on Russian gas (e.g. Germany & Italy).
The ensuing energy crisis saw a jump in regas utilisation, the emergence of significant bottlenecks (particularly accessing key continental NW European hubs) and a surge in the merchant value of regas capacity.
This shocked both policy makers and industry players into pursuing a wave of investment in new regas capacity (both FSRUs & fixed capacity).
In today’s article we use 4 charts to check in on European LNG imports, regas capacity utilisation and how the wave of new regas investment is impacting market price signals.
There was a step change increase in European LNG imports from Q2 2022 as a result of Russian supply cuts. This can be clearly seen in Chart 1.
Chart 1: European LNG imports across last 5 years
Chart Source: Timera Energy, LNG Unlimited
Read the full article by Timera Energy
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