Europe's expansion of LNG facilities is slowing down due to an expected decrease in gas demand.

Europe's development of liquefied natural gas (LNG) import terminals is slowing down, suggesting that nations on the continent have overestimated future gas demand.

LNG regasification in Europe increased by 13% in 2023 and is expected to rise by 8% in 2024, with a projected 2% increase this year, according to the updated European LNG Tracker from the Institute for Energy Economics and Financial Analysis (IEEFA).

The slowdown in the construction of LNG terminals in Europe comes as IEEFA predicts a decline in the continent's gas consumption and LNG imports by 15% and 20%, respectively, between 2025 and 2030.

“Europe has added or expanded 19 LNG terminals since early 2022 as it moves away from Russian pipeline gas. However, recent terminal cancellations and closures indicate that European nations have overestimated LNG demand,” stated Ana Maria Jaller-Makarewicz, lead energy analyst for Europe at IEEFA.

“Countries in Europe that continue to invest in building or expanding LNG terminals risk creating unnecessary infrastructure as the energy transition speeds up.”

Europe has increased its dependency on LNG imports this year following the halt of Russian gas pipeline flows via Ukraine on January 1. LNG imports surged by 24% year-on-year in the first half of 2025 due to rising gas demand.

The US has solidified its role as Europe’s primary LNG supplier, with European imports of US LNG climbing by 46% year-on-year in the first half of 2025, making up 57% of the continent’s LNG imports.

“The LNG sector often emphasizes the importance of LNG terminals in securing energy supplies. However, Europe’s recent struggles with terminal delays and technical problems call this into question. Reducing gas consumption has been crucial for energy security,” noted Jaller-Makarewicz.

Record imports of Russian LNG

Europe’s imports of Russian LNG rose by 2% year-on-year in the first half of 2025, hitting a record for any half-year period.

The EU continues to increase its imports of Russian LNG even after imposing sanctions on the country's LNG operations. Although the EU plans to ban Russian LNG imports starting January 2027, imports from the country grew by 7% year-on-year in early 2025, according to IEEFA.

In the first half of 2025, France accounted for 41% of Europe’s Russian LNG imports, followed by Belgium (28%), Spain (20%), the Netherlands (9%), and Portugal (2%).

From early 2022 to June 2025, EU countries spent approximately €120 billion on pipeline gas and LNG imports from Russia.