Europe's LNG imports experienced a 19% decrease in 2024, attributed to gas demand reduction policies and the growth of renewable energy sources. This decline reflects the continent's lowest gas consumption in 11 years, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
The most significant reductions in LNG imports were seen in the UK (47%), Belgium (29%), and Spain (28%). 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% between 2021 and 2030, raising concerns about potential overinvestment and underutilization of infrastructure. IEEFA forecasts an average utilization rate of 30% for Europe's regasification capacity by 2030.
Several countries, including Germany, the Netherlands, Türkiye, 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% utilization.
While US LNG imports, which constituted 46% of Europe's total in 2024, decreased by 18%, imports of Russian LNG increased by 12% for Europe and 18% 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% of Europe's imports. IEEFA estimates that EU countries spent €6.3 billion on Russian LNG between January and November 2024.
The decrease in Europe's LNG imports in 2024 (approximately 32 billion cubic meters) exceeds the volume of Russian gas that transited via Ukraine (about 15 billion cubic meters). 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.
The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analysis on energy-related issues.