Opinion

Europe’s Liquefied Natural Gas Imports Have Increased Lately, But Remain Below 2011 Peak


Europe LNG imports, net of re-exports

Source: U.S. Energy Information Administration, based on International Group of Liquefied Natural Gas Importers (GIIGNL) Annual Reports, 2005–2018

Imports of liquefied natural gas (LNG) to the 28 countries that make up the European Union (EU-28) averaged 5.1 billion cubic feet per day (Bcf/d) in 2017, increasing for the third consecutive year but remaining below their 2011 peak. In 2017, imports of LNG into EU-28 accounted for 13% of the global total. LNG import capacity in EU-28 currently stands at 20 Bcf/d, or almost one-fifth of the global total, but utilization of EU-28 LNG import facilities has declined from about 50% in 2010 to between 20% and 25% in recent years as expansions in regasification capacity far exceeded demand for LNG imports.

Currently, 13 of the EU-28 member countries import LNG. In 2017, LNG accounted for 11% of EU-28's overall natural gas supply. Domestic natural gas production in EU-28, two-thirds of which is in the United Kingdom and the Netherlands, has steadily declined in recent years and in 2017 accounted for 25% of EU-28 natural gas supply. European natural gas production is expected to continue to decline because of an aging, mostly depleted resource base. In addition, the Netherlands' largest natural gas field, Groningen, has been subject to increasingly strict production reduction measures.

Imports of natural gas by pipeline, in particular from Russia and Norway, have increased. In 2017, natural gas imports from Russia provided 35% of the total EU-28 supply and Norway provided 24%. In the first six months of 2018, pipeline imports from Russia continued to increase, averaging a record 17.1 Bcf/d, 8% higher than in the same period last year, based on data from S&P Global Platts.

Europe natural gas supply composition
Source: U.S. Energy Information Administration, based on International Group of Liquefied Natural Gas Importers (GIIGNL) annual LNG trade reports, 2011–2018 and IHS Markit

EU-28 LNG imports have largely followed trends in regional natural gas consumption. From 2011 through 2014, relatively high natural gas prices led to less consumption of natural gas for electric power generation in several EU-28 countries, especially the United Kingdom and Spain. More recently, the use of natural gas in power generation increased in the EU-28. In 2017, several factors such as low hydroelectric output in Spain, Italy, and Portugal as well as unplanned nuclear plant shutdowns in France led to greater natural gas consumption and higher LNG imports.

Europe liquefied natural gas supply imports and import capacity
Source: U.S. Energy Information Administration, based on International Group of Liquefied Natural Gas Importers (GIIGNL) annual LNG trade reports, 2011–2018

Going forward, LNG imports in Europe will have to compete on a cost basis with existing and new pipeline supplies of natural gas, particularly from Russia. A new undersea pipeline from Russia to Germany—Nord Stream 2, with a capacity of 5.3 Bcf/d—has secured permits needed for construction in Russia, Germany, Finland, and Sweden. Construction of the Russian portion of the pipeline has started, but developers have not been able to obtain permits in Poland and Denmark and have been considering alternative routes. This pipeline's expected in-service date is the end of 2019.

Principal contributors: Victoria Zaretskaya, Justin Kim


Visit source site

https://eia.gov/todayinenergy/detail.php?id=37354&...

europeLNGLiquified Natural GasEnergy Information Administration EIAEIAnatural gasgasEUEuropean UnionImports

More items from oilvoice


Premier Oil Trading and Operations Update

Premier has provided a Trading and Operations Update for the period to 15 November 2018. Highlights ·     Year-to-date production of 78.4 kboepd, up from 76.2 kboepd in the first half; forecast full-year production at around 80 kboepd ·    Record Catcher Area production rates of over 70 kbo ...

OilVoice Press - OilVoice


Posted 22 hours agoPress > Premier OilTrading UpdateOperations Update +1

Cairn Energy PLC - North Sea Operational Update

UK Norway Update - discovery and farm out Cairn announces the following; An oil discovery on the 9/14a-17B well and associated side-track on the Agar-Plantain Prospect in the UK North Sea Farm out agreement for a 40% non-operated interest of the Chimera prospect in the UK North Sea Commitmen ...

OilVoice Press - OilVoice


Posted 22 hours agoPress > Cairn EnergyNorwayUnited Kingdom +7

Suncor Energy Declares Dividend and Amends Normal Course Issuer Bid

Suncor Energy's Board of Directors has approved a quarterly dividend of $0.36 per share on its common shares, payable December 24, 2018 to shareholders of record at the close of business on December 3, 2018. Suncor also announced today that the Toronto Stock Exchange (TSX) accepted a notice filed ...

OilVoice Press - OilVoice


Posted 1 day agoPress > DividendSuncor Energy

Tullow Oil plc November Trading Update

Tullow Oil plc (Tullow) issues the following Trading Update for the period 26 July to 15 November 2018. Tullow will be hosting a Capital Markets Day on 29 November 2018. Please see full details below. The Group will also publish a Trading Statement and Operational Update on 16 January 2019 and Ful ...

OilVoice Press - OilVoice


Posted 1 day agoPress > Tullow OilTrading UpdateTullow +2

The Wolfcamp Play Has Been Key to Permian Basin Oil and Natural Gas Production Growth

Source: U.S. Energy Information Administration, based on DrillingInfo Increased oil and natural gas development in the Wolfcamp play has helped drive overall crude oil and natural gas production growth in the Permian Basin during the past decade. Drilling and completion operations within the ...

OilVoice Press - OilVoice


Posted 1 day agoOpinion > EIAEnergy Information Administration EIAUnited States +9
All posts from oilvoice