Europe’s decreasing gas demand is leading to questions about the necessity of building new LNG import terminals, with current terminals operating at just 42% capacity. Despite this trend, President Donald Trump is urging Europe to increase imports from the US. Last year, LNG imports into the EU fell by 16% compared to 2023, with a significant decrease in pipeline gas from Russia due to geopolitical tensions.
The EU has added import capacity for 50 billion cubic meters of gas a year since 2022, but current trends suggest that only 30% of this capacity will be utilized by 2030. This has raised concerns about overinvestment and underutilization of infrastructure as the energy transition accelerates. The Institute for Energy Economics and Financial Analysis (IEEFA) warned that doubling down on new LNG terminals without considering demand trends could be risky.
Despite the EU’s unofficial target to end all fossil fuel imports by 2027, the EU continues to import significant amounts of Russian LNG. Vice-president Maroš Šefčovič is set to meet with US officials to discuss tariffs on European imports unless they increase LNG imports from the US. Last year, 46% of EU imports came from the US, with Russia accounting for 18% of imports.
As the EU finalizes its exit strategy from Russian energy dependence, it is closely monitoring gas demand trends. The Commission’s energy spokesperson mentioned that all statistics and information will be considered in this process, as the EU aims to reduce its reliance on Russian energy sources. Overall EU gas demand has decreased by approximately 20% in the three years since the invasion of Ukraine.
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