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European Regas Capacity to Rise but Utilisation to Decline

LNG

The rapid growth in regas capacity in Europe across the next 5 years is expected to see a reduction in regas utilisation according to Timera Energy.

  • Germany is leading the way on regas capacity growth, with 6 FSRUs and 3 onshore terminals under development, pushing operational capacity above 40bcma by 2027.
  • European regas utilisation is forecast to fall back from the very high levels of above 80% as supplies pivot from Russian gas to LNG imports but they expect structurally higher levels than pre-Russia crisis levels.
  • They see utilisation stabilising in the late 2020s as regas capacity growth ends, but global LNG supply growth in the second half of this decade sees increased flows to Europe.
  • The majority of capacity is yet to be sold with auctions to allocate German terminal capacity to be announced later in 2023.


Source: Timera Energy

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