The usage of the EU LNG terminal falls to 42% in 2024.

The utilization rate of LNG terminals in European Union (EU) countries, which are shifting towards renewable energy and liquefied natural gas (LNG) to lessen their dependency on Russian gas imports, dropped to 42% last year.

According to data compiled from the LNG report by the Institute for Energy Economics and Financial Analysis (IEEFA), the utilization rate of the EU's LNG terminals was recorded at 58% in 2023.

Last year, this rate declined to 42%. Half of the EU's LNG terminals had a utilization rate below 40%, including several new Floating LNG Storage and Regasification Units (FSRUs).

The Mukran FSRU in Germany had an 8% utilization rate last year, while the Alexandroupolis FSRU in Greece saw 9%, the Toscana FSRU in Italy reached 18%, the Eemshaven FSRU in the Netherlands was at 34%, and the Exemplar FSRU in Finland had a rate of 38%.

The utilization rate for the Barcelona LNG Terminal in Spain remained at 12%, El Musel LNG Terminal in Spain was used at 14%, the Revithoussa LNG Terminal in Greece at 22%, and the Zeebrugge LNG Terminal in Belgium at 33%.

'Nonetheless, European nations are still planning to invest in new LNG import terminals. IEEFA predicts that this could result in an average utilization rate of 30% for Europe's regasification capacity by 2030. As new LNG import projects become operational and gas consumption continues to decline, IEEFA estimates that Europe's 2030 regasification capacity will exceed LNG demand that year by over three times,' stated IEEFA.

- Diversifying energy sources reduces some utilization capacity efficiency.

In response to the research, Ana Maria Jaller-Makarewicz, an energy analyst at IEEFA, noted that at the onset of the energy crisis in 2022, Europe developed strategies to minimize reliance on Russian gas and ensure a secure supply.

She explained that diversifying sources was deemed necessary, which included increasing LNG imports while simultaneously reducing gas demand and boosting renewable energy adoption.

'The initiatives to increase LNG capacity did not account for how diversification policies would affect LNG demand,' she commented.

Jaller-Makarewicz pointed out that just last week, the German firm Deutsche ReGas announced the cancellation of the charter for the FSRU Energos Power, which has been operational since February 2024.

'It is known to be the only privately funded FSRU terminal in the nation,' she remarked.

She highlighted that in May 2022, the European Commission introduced the REPowerEU Plan in response to the challenges and disruptions in the global energy market caused by Russia's invasion of Ukraine, aiming to eliminate the EU's dependence on Russian fossil fuels.

She observed that in 2024, the EU increased its imports of Russian LNG by 18% compared to the previous year.

'France is the largest importer of Russian LNG, accounting for 39% of Europe's Russian LNG imports. Spain and Belgium rank as the second and third largest importers of Russian LNG in Europe. However, while both of them reduced imports from Russia, France increased its imports by 81%. The Dunkerque LNG terminal constitutes 27% of EU imports of Russian LNG,' Jaller-Makarewicz stated.

Jaller-Makarewicz mentioned that SEFE, previously known as Gazprom Germania, holds a 20-year contract to purchase 3.9 bcm of Yamal LNG annually on a Free-On-Board basis for delivery to Gail India Ltd after transshipping in EU ports.

'It is understood that SEFE is actually sending some of those volumes to the EU instead of to Gail,' she added.