European countries are significantly ramping up their liquefied natural gas (LNG) regasification capacity, targeting a total of 324.2 billion cubic meters (bcm) by the end of 2024—an increase of 26% compared to levels before the Russia-Ukraine conflict. However, current utilization is only around 50% of existing capacity.
Post-2022, in response to the war, European nations have made substantial investments in LNG infrastructure, raising capacity from 277.8 bcm in 2022 to 312.9 bcm in 2023. Despite this, overall gas demand in Europe is declining, driven by a shift towards renewable energy and enhanced energy efficiency. In the first half of 2024, gas consumption fell by 5.4% to 232.1 bcm, with the EU experiencing a 3.2% decrease during the same period. Notably, Norway and the UK saw drastic drops in gas usage of 36% and 13%, respectively.
The most significant reductions in gas consumption were noted in Portugal (18%), Malta (15%), and Croatia (14%). Conversely, some countries like Finland and Greece recorded increases in consumption, with rises of 37% and 30%, respectively.
The Institute for Energy Economics and Financial Analysis (IEEFA) predicts a continued decline in European gas demand, estimating an 11.2% drop this year to 148 bcm, suggesting that the peak for LNG consumption may have already been reached. By 2030, demand is projected to further decrease to 93 bcm.
