Page 13 - GLNG Week 02 2023

GLNG EUROPE GLNG

The EU becomes the world’s

biggest LNG importer in 2022

IMPORTS THE EU has become the world leader in LNG of Germany’s LNG terminals are operational
imports, according to the end of 2022’s results, they are expected to be able to meet a third of
as reported by Refinitiv on January 10. the country’s demand for gas, according to the
The European Union became the world’s German Economics Ministry.
largest buyer of liquefied natural gas (LNG), Dependent on Russian piped gas for dec-
ahead of China, Japan and South Korea, the con- ades, Germany was one of the few coastal EU
sultant said. Against the background of a sharp countries that had ignored LNG until the war in
reduction in the supply of Russian pipeline gas, Ukraine made its dependency on Russian piped
EU countries increased LNG purchases by 58%, gas a glaring problem.
up to 101mn tonnes, equivalent to 137bn cubic On December 17, the first of Germany’s
metres of natural gas, slightly less than the 155 FLNG terminals came online in the port of Wil-
bcm Russia delivered to the EU in 2021. helmshaven. The floating terminal that will meet
Earlier the International Energy Agency 6% of Germany’s gas demand, is supported by
(IEA) reported that Russian sent slightly more a floating Norwegian regasification unit, and
than 100 bcm of gas to the EU in 2022, and after four more terminals will be put in place this year
the explosions appeared to have cause leaks in – one more at Wilhelmshaven and three other
the two main Nord Stream gas pipelines on Sep- facilities in the northern cities of Brunsbüttel,
tember 26 last year, the total piped gas deliver- Stade and Lubmin.
ies to the EU are expected to fall to between 50 Meeting Germany’s demand for gas is impor-
bcm-60 bcm, almost exclusively via Turkey and tant for the rest of Europe, as it has by far the larg-
Ukraine. est gas storage tanks in EU and supplies gas to
The IEA recently reaffirmed its forecast that many other European countries, including Italy,
Europe will face a 30 bcm gas deficit this year which is the second-biggest gas importer after
that could restart the energy crisis this summer, Germany.
after the EU ended 2022 with very full storage Russian LNG supplies have not been affected
tanks and low demand due to the warmth of the by the fallout from the war in Ukraine. Indeed,
winter. the Russian government estimates it shipped 21
The EU imported 24%, Japan 17%, China bcm of LNG last year to Europe – some of it via
15% and South Korea 11% of total global LNG China swap deals that saw its demand for gas fall
deliveries, according to Refinitiv. The share of significantly last year due to its economic prob-
liquefied gas in Europe’s consumption increased lems – significantly up on the level in 2021. But
1.75 times, from 20% to 35%, while the share of Russia has lost some markets, including the UK,
Russian gas fell to a third of its previous level, whose government on January 1 ended all LNG
from 40% to 15%. imports from the country.
Germany remains the largest market for nat- The UK imported 3.12 bcm of Russian gas or
ural gas in Europe and until recently had Russia 4% from total consumption of this kind of fuel
as its largest supplier, although this position is last year. Imports of Russian gas declined dra-
now held by Norway, which has ramped up pipe matically after the start of the Russian “special
gas supply to the country over recent months. military operation” in Ukraine. The UK con-
Germany has rushed into operation five floating sumes about 75 bcm of gas on average per year.™
LNG (FLNG) terminals and is currently build-
ing its first onshore terminal, which could come
into operation by this coming winter. When all

Week 02 12•January•2023 www. NEWSBASE .com P13