Tue Feb 18 07:10:00 UTC 2025: ## Europe’s LNG Imports Plummet Despite Massive Capacity Expansion

**Brussels, [Date]** – A new report from the Institute for Energy Economics and Financial Analysis (IEEFA) reveals a surprising paradox in Europe’s energy landscape: despite a massive increase in liquefied natural gas (LNG) import capacity, imports have plummeted. Driven by successful renewable energy deployment and demand reduction policies, Europe’s gas consumption fell by 20% between 2021 and 2024, leading to a 19% drop in LNG imports in 2024 alone.

The IEEFA’s European LNG Tracker, an interactive data set visualizing Europe’s LNG infrastructure, shows that while import capacity soared by 31% since the beginning of the war in Ukraine, reaching a total of 78.6 bcm of new regasification capacity (70.9 bcm within the EU), utilization rates have fallen sharply. The average utilization rate for EU LNG import terminals dropped from 58% in 2023 to a mere 42% in 2024, with half of the terminals operating below 40% capacity. This includes several recently commissioned floating storage regasification units (FSRUs).

Despite efforts to diversify energy sources and reduce reliance on Russia, imports of Russian LNG increased by 18% in 2024, costing EU countries an estimated €6.3 billion between January and November. This rise, partially attributed to spot trades, has prompted concerns, particularly given the EU’s efforts to reduce Russian gas dependence. A ban on transshipments of Russian LNG, scheduled for March 2025, aims to address this issue.

The report forecasts that Europe’s 2030 regasification capacity will be over three times its projected LNG demand, highlighting a potential future oversupply. This overcapacity is fueled by a combination of decreased demand, slowing LNG buildout due to delays, and the indefinite postponement or cancellation of several LNG terminal projects. The IEEFA predicts that European gas demand will continue its decline, falling by 1.5% in 2025 and reaching 127 bcm by 2030.

While the decrease in gas consumption is a positive step towards energy security and climate goals, the report underscores the need for careful planning and resource allocation in Europe’s rapidly evolving energy market. The significant investment in LNG infrastructure, combined with reduced demand, presents a challenge that requires strategic adjustments to avoid economic losses and wasted resources. The IEEFA’s tracker provides a comprehensive overview of the situation and allows for detailed exploration of the data.

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