LNG
The security of Europe's gas supply depends on the region's ability and willingness to contract sufficient additional liquefaction capacities in the US from 2025 and Qatar from 2026, according to S&P Global Commodity Insights.
- Europe added only 8bcm/yr of new regas capacity this year with the Eeemshaven plant in the Netherlands. Germany is expecting two new floating storage regasification units to come online this winter with another three next winter.
- It will be vital for Europe to contract larger LNG volumes and to renew existing supply contracts. IEA estimates show around 180bcm of active LNG contracts are set to expire by 2025.
- Europe will need to overcome several hurdles to secure enough LNG in the future because of Europe’s lack of a cohesive sourcing approach and competition from northeast Asia.
- China has secured twice as much LNG as Europe from the third wave of US LNG capacity, which comes on stream in 2024-2026.
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