EUROPE's LNG imports suffered a 19 per cent decrease in 2024, attributed to EU gas demand reduction policies and the growth of renewables, reported St Petersburg's PortNews.

This decline reflects the continent's lowest gas consumption in 11 years, according to the Ohio-based Institute for Energy Economics and Financial Analysis (IEEFA).

The most significant reductions in LNG imports were seen in the UK (down 47 per cent), Belgium (down 29 per cent) and Spain (down 28 per cent).

Despite the import decline, IEEFA notes that further efforts are needed to diversify energy supplies and mitigate exposure to LNG market fluctuations, particularly as EU gas demand remained relatively flat in 2024.

"EU efforts to curb gas demand have been crucial for maintaining the continent's security of energy supply," said Ana Maria Jaller-Makarewicz, lead energy analyst, Europe, at IEEFA. "However, as EU gas demand was flat last year, more work is needed to diversify energy supplies and reduce Europe's exposure to LNG market volatility."

Despite the drop in demand, Europe's LNG import capacity is projected to increase by 60 per cent between 2021 and 2030, raising concerns about potential overinvestment and underutilisation of infrastructure. IEEFA forecasts an average utilisation rate of 30 per cent for Europe's regasification capacity by 2030.

Several countries, including Germany, the Netherlands, Turkey, Italy, France, Belgium, Greece, Finland, Poland, and Croatia, have installed or expanded LNG terminals since 2021. In 2024, half of the EU's LNG import terminals operated below 40 per cent utilisation.

While US LNG imports, which constituted 46 per cent of Europe's total in 2024, decreased by 18 per cent, imports of Russian LNG increased by 12 per cent for Europe and 18 per cent for the EU.

This growth occurred despite the EU's stated aim of ending reliance on Russian fossil fuels by 2027. France, Spain and Belgium were the primary recipients of Russian LNG, accounting for 85 per cent of Europe's imports. IEEFA estimates that EU countries spent EUR6.3 billion (US6.7 billion) on Russian LNG between January and November 2024.

The decrease in Europe's LNG imports in 2024 (32 billion cubic metres) exceeds the volume of Russian gas that transited via Ukraine (about 15 billion cubic metres). With the need to replace this pipeline supply and replenish gas storage before the next winter, European and EU LNG demand is expected to rise in 2025, although it is projected to remain below the peak consumption levels of 2022 and 2023.