Europe Increasing Import Capacity Also Need to Secure LNG Supplies

Long term European natural gas supplies are dependent on LNG imports with Europe looking to increase import capacity by approximately 50bcm by the end of 2023 including projects in Germany, Netherlands, Finland, Italy, and Greece.

• Germany will set aside €665m/yr to rent and operate five FRSU LNG import facilities until 2038, according to a document released by the country’s parliament on Wednesday.
• The additional challenge for Europe is to secure supplies with LNG exporters looking for longer contracts than Europe would ideally like to commit to. Many US suppliers are looking for 15 year contracts to help secure financing for new liquefaction terminal projects.
• European countries are trying to balance the energy security of gas supplies with their aims to meet long term emissions targets and the energy transition beyond 2025.
• US projects that are yet to be sanctioned totalling up to 105mtpa are: Lake Charles 16.4mtpa, Rio Grande 27mtps, Port Arthur 13.5mtpa, Delfin Midstream 14mtpa, CP2 20mtpa and Mexico Pacific 14.1mtpa.