The United States exported 7.1 billion cubic feet per day (Bcfpd) of liquefied natural gas (LNG) to Europe last year, maintaining its position as the region’s biggest LNG source for the third consecutive year, the U.S. Energy Information Administration (EIA) has reported.
The figure represented 48 percent of Europe’s total LNG imports 2023. In 2022 the U.S. accounted for 44 percent or 6.5 Bcfpd of Europe’s LNG imports, up from 27 percent or 2.4 Bcfpd 2021, the EIA said in the report on its website.
“In 2023, Europe’s LNG imports averaged 14.7 Bcf/d, essentially unchanged from 2022, despite an estimated 4.2 Bcf/d of regasification capacity additions”, stated the report, which used data from the International Group of LNG Importers (GIINGL) and the non-profit CEDIGAZ. “Mild 2022–23 winter weather in the Northern Hemisphere reduced heating demand and contributed to Europe ending the winter heating season with record-high natural gas in storage”.
While Europe saw record LNG imports from June 2022 to April 2023, peaking at 18.1 Bcfpd, imports fell subsequently because demand slowed due to energy conservation measures, storage inventories became full and international prices went relatively high, the EIA added.
France, Spain, the Netherlands and the United Kingdom accounted for nearly two-thirds of the continent’s LNG imports at 9.3 Bcfpd in total, the EIA said.
Europe’s biggest economy Germany, which started importing LNG January 2023, accounted for four percent or 0.6 Bcfpd, 80 percent of which came from the U.S., the EIA said.
“Europe’s LNG import, or regasification, capacity is on track to expand to 29.3 Bcf/d in 2024, an increase of more than one-third compared with 2021”, the EIA said, using GIIGNL and trade press data.
Qatar and Russia continued to be the second- and third-largest suppliers of LNG to Europe last year. Qatar supplied 14 percent at 2.0 Bcfpd while Russia supplied 13 percent or 1.8 Bcfpd. Along with the U.S., the three countries accounted for three-quarters of LNG imported into Europe 2022 and 2023, the EIA said.
Taking into account pipeline imports, Norway was Europe’s biggest supplier of natural gas 2023 accounting for 30.3 percent, followed by the U.S. at 19.4 percent, according to information from the European Council website.
While the European Union has joined hands with Australia and the Group of Seven in imposing price caps to limit imports of Russian petroleum and oil products, the 27-member block has shied away from imposing a blanket restriction on Russian gas. “The net impact of such a measure on Russian revenues would have probably been limited as Russia would have been able to redirect most of its exports, notably to Asia”, the European Commission said in an article December 18 explaining a new package of sanctions against Russia over the war in Ukraine.
However, earlier in December, the European Council and Parliament reached an agreement to allow member states to restrict LNG from Russia and Putin ally Belarus for a renewable fixed term. The consensus was part of a provisional agreement reached December 8 between the EU’s decision-making and lawmaking bodies on a regulation that lays out rules for the gas and hydrogen markets.
EU nations may restrict LNG from Russia and Belarus “by limiting up-front bidding or provision for LNG facility capacity by any single network user for deliveries from the Russian Federation or Belarus, where this is necessary to protect their essential security interests and those of the Union”, says the text of the provisional agreement accessible on the Council website.
Meanwhile Qatar has bagged long-term LNG supply contracts for several countries in Europe, as well as Asia, with different energy companies since the energy trade disruption that has resulted from Russia’s invasion of Ukraine February 2022.
On October 23, 2023, QatarEnergy announced a 27-year agreement with Eni SPA to supply up to 1.0 million metric tons per annum (MMtpa) of LNG from the North East gas field expansion project to Italy. Eni is a partner in the East project with a 3.125 percent share.
On October 18, 2023, QatarEnergy announced two agreements with Shell PLC for up to 3.5 MMtpa for 27 years. The supply is meant for the Netherlands and to be sourced from the East project, where the British energy major holds 6.25 percent ownership. Shell also holds 9.375 percent in the South project.
On October 11, 2023, QatarEnergy bared two agreements to supply TotalEnergies SE with a maximum of 3.5 MMtpa for 27 years, to be sourced from the North Field east and south expansion projects and for distribution in France. The French energy giant holds a 6.25 percent share in North Field East, planned to produce 32 MMtpa, and 9.375 percent in North Field South, designed with a 16 MMtpa capacity.
QatarEnergy will begin delivery for the LNG supply for France, Italy and the Netherlands 2026, according to QatarEnergy’s announcements of the agreements.
On the other hand the U.S. announced January 26 an indefinite pause on pending decisions on the export of LNG to countries with which it has no free trade agreement. However, the White House said the moratorium does not impact LNG commitments to allies “in the near-term” and that the US still can send LNG overseas during “unanticipated and immediate national security emergencies”.
“Through existing LNG production and export infrastructure, the U.S. has – and will continue – to deliver for our allies”, it said in a statement at the time.
The pause allows the Energy Department to review permitting considerations that are now out of date when it comes to greenhouse gas emissions, environmental impact, energy prices and domestic gas supply, the White House said.
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