Europe eyes 42pc rise in LNG import capacity by 2026

Spanish Market: Natural gas
13/07/22

Europe will be able to increase its LNG imports later this year, but liquefaction facilities are expanding at a slower pace, writes Auguste Breteau

Europe plans to hike its LNG import capacity by 84.6mn t/yr by the start of 2026, but global liquefaction expansions are only expected to match that rise by 2025.

Europe has 17 projects that have already reached a final investment decision (FID) or are based only on the optimisation of existing infrastructure. If completed, these would increase Europe's LNG import capacity to 278mn t/yr by 2026, 44pc higher than at present.

A cumulative 23.8mn t/yr of LNG import capacity is scheduled to come on line before the end of this year, with one floating storage and regasification unit (FSRU) to be installed in Finland, two in the Netherlands and another in Turkey.

A further four FSRUs with a combined capacity of 17mn t/yr are expected to begin operations next year. Two, chartered by Norwegian shipowner Hoegh LNG, are expected to be deployed to Germany, while the 170,000m³ Golar Tundra, purchased by Italian system operator Snam, is expected to operate at the port of Piombino, on the country's west coast, from spring 2023. Construction of Greece's planned 4.3mn t/yr Alexandropoulis FSRU terminal started in May.

Snam also secured the 170,000m³ BW Singapore, which is due to be installed near Ravenna on Italy's Adriatic coast and start operations in the third quarter of 2024, as well as the 140,000m³ Golar Arctic, which is scheduled to operate from 2025 at Sardinia's Portovesme port, as part of a Snam scheme aimed at integrating the island into the mainland gas grid.

Germany, which is not yet able to directly import LNG, has begun works on its two FSRUs as well as two onshore terminals at Brunsbuttel and Stade, which are due to begin operations by 2026. The projects would take German import capacity to an aggregate 25.4mn t/yr by 2026. German utility Uniper will charter two FSRUs from Greek shipowner Dynagas, one of which is to be developed into an onshore terminal, while green hydrogen firm Tree Energy Solutions plans to build an additional onshore terminal at Wilhelmshaven by late 2025.

FIDs have been taken on these Finnish, German, Italian and Greek projects, as well as on expansions at the 7.2mn t/yr Zeebrugge terminal in Belgium, the 14.8mn t/yr Isle of Grain facility in the UK and the 4.8mn t/yr Swinoujscie terminal in Poland, all three of which are scheduled for completion by 2026. An FID has also been taken for an FSRU with import capacity of around 4.7mn t/yr at Gdansk in Poland, due to come on line by 2028.

Import expansion to outpace exports

Europe's LNG import capacity expansions are pegged to exceed additional global liquefaction capacity until 2025, raising the question as to whether Europe will be able to secure sufficient LNG supplies to make full use of its new capacity.

Liquefaction capacity is expected to increase slowly this year and next, before rising sharply in 2024-25, when large projects such as the 14mn t/yr LNG Canada, the US' 18.1mn t/yr Golden Pass LNG and trains 8-11 at Qatar's 33mn t/yr Ras Laffan plant are scheduled to come on line (see graph). Only by 2025 will global liquefaction capacity rise above European import capacity. By 2026, 131mn t/yr of new liquefaction capacity should have come on line from the 15 LNG export projects that have reached an FID — far outstripping Europe's import capacity.

But considerable uncertainty remains over Russia's planned 19.8mn t/yr Arctic LNG 2 liquefaction project. The project might be difficult to complete under sanctions, TotalEnergies chief executive Patrick Pouyanne says. TotalEnergies' 13.1mn t/yr Mozambique project will play a key role in the company's LNG strategy, but the facility is unlikely to start in 2024 as planned, Pouyanne adds. Militant group attacks and security issues forced the firm to halt construction in 2020.

Cumulative increase in LNG capacity mn t/yr

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11/04/25

US tariffs cast a shadow on global gas market

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Q&A: IMO GHG scheme in EU ETS could be 'challenging'

11/04/25

Q&A: IMO GHG scheme in EU ETS could be 'challenging'

London, 11 April (Argus) — Delegates have approved the global greenhouse gas (GHG) pricing mechanism proposal at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting. Argus Media spoke to ministerial adviser and Finland's head representative at the IMO delegation talks, Anita Irmeli, on the sidelines of the London MEPC meeting. What is your initial reaction to the text? We are happy and satisfied about the content of the agreed text, so far. But we need to be careful. This week, all member states were able to vote. But in October, when adaption will take place, only those states which are parties to Marpol Annex VI will be able to vote if indeed a vote is called for, and that changes the situation a little bit. Here when we were voting, a minority was enough — 40 votes. But if or when we vote in October, then we need two thirds of those party to Marpol Annex VI to be in favour of the text. Will enthusiasm for the decision today remain by October? I'm pretty sure it will. But you never know what will happen between now and and the next six months. What is the effect of the decision on FuelEU Maritime and the EU ETS? Both FuelEU Maritime and the EU ETS have a review clause. This review clause states that if we are ambitious enough at the IMO, then the EU can review or amend the regulation. So of course, it is very important that we first consider if the approved Marpol amendments are ambitious enough to meet EU standards. Only after that evaluation, which won't be until well after October, can we consider these possible changes. Do you think the EU will be able to adopt these the text as it stands today? My personal view is that we can perhaps incorporate this text under FuelEU Maritime, but it may be more challenging for the EU ETS, where shipping is now included. What was the impact of US President Donald Trump's letter on the proceedings? EU states were not impacted, but it's difficult to say what the impact was on other states. By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IMO approves two-tier GHG pricing mechanism

11/04/25

IMO approves two-tier GHG pricing mechanism

London, 11 April (Argus) — Delegates have approved the global greenhouse gas (GHG) pricing mechanism proposal at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting, pending an adoption vote at the next MEPC in October. The proposal passed by a majority vote, with 63 nations in favor including EU states, the UK, China and India, and 16 members opposed, including Mideast Gulf states, Russia, and Venezuela. The US was absent from the MEPC 83 meeting, and 24 member states abstained. The proposal was accompanied by an amendment to implement the regulation, which was approved for circulation ahead of an anticipated adoption at the October MEPC. Approval was not unanimous, which is rare. If adoption is approved in October at a vote that will require a two-thirds majority, the maritime industry will become the first transport sector to implement internationally mandated targets to reduce GHG emissions. The text says ships must initially reduce their fuel intensity by a "base target" of 4pc in 2028 ( see table ) against 93.3 gCO2e/MJ, the latter representing the average GHG fuel intensity value of international shipping in 2008. This gradually tightens to 30pc by 2035. The text defines a "direct compliance target", that starts at 17pc for 2028 and grows to 43pc by 2035. The pricing mechanism establishes a levy for excessive emissions at $380 per tonne of CO2 equivalent (tCO2e) for ships compliant with the minimum 'base' target, called Tier 2. For ships in Tier 1 — those compliant with the base target but that still have emission levels higher than the direct compliance target — the price was set at $100/tCO2e. Over-compliant vessels will receive 'surplus units' equal to their positive compliance balance, expressed in tCO2e, valid for two years after emission. Ships then will be able to use the surplus units in the following reporting periods; transfer to other vessels as a credit; or voluntarily cancel as a mitigation contribution. IMO secretary general Arsenio Dominguez said while it would have been more preferable to have a unanimous outcome, this outcome is a good result nonetheless. "We work on consensus, not unanimity," he said. "We demonstrated that we will continue to work as an organization despite the concerns." Looking at the MEPC session in October, Dominguez said: "Different member states have different positions, and there is time for us to remain in the process and address those concerns, including those that were against and those that were expecting more." Dominguez said the regulation is set to come into force in 2027, with first revenues collected in 2028 of an estimated $11bn-13bn. Dominguez also said there is a clause within the regulation that ensures a review at least every five years. By Hussein Al-Khalisy, Natália Coelho, and Gabriel Tassi Lara IMO GHG reduction targets Year Base Target Direct Compliance Target 2028 4% 17% 2029 6% 19% 2030 8% 21% 2031 12% 25% 2032 17% 30% 2033 21% 34% 2034 26% 39% 2035 30% 43% Source: IMO Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil and gas lobby calls H2 'core competency,' hails 45v

10/04/25

Oil and gas lobby calls H2 'core competency,' hails 45v

Houston, 10 April (Argus) — The oil and gas industry views hydrogen production as a "core competency" and sees 45v tax credits driving US exports and innovation, according to the American Petroleum Institute (API). "We really see this, especially from the oil and gas perspective, as a core competency," said Rachel Fox, API director of policy and strategy, on a webinar Thursday hosted by ConservAmerica. "We have such an advantageous opportunity with this credit," said Fox. "When we're talking about the export opportunity, we really do hold the cards in terms of producing hydrogen at the lowest cost anywhere in the world." The 45V incentive has become a crucible in President Donald Trump's agenda to promote fossil fuels. A broad-based coalition of groups sometimes at odds with one another has coalesced in favor of 45V noting that it promotes manufacturing jobs across rural America and sets up US energy companies to dominate growing global demand for cleaner burning fuels. Nonetheless, ConservAmerica described such energy tax incentives as being "squarely in the crosshairs" as legislators gear up for budget negotiations in which the administration is looking to slash government spending to offset a promised corporate tax cut. By tying a tiered scale of incentives to carbon intensity, 45V has spurred oil and gas companies to develop technologies and practices that curb emissions, said Fox. "There's a lot of incentive to try to hit that $3 mark by getting your hydrogen produced at a really low carbon-intensity limit and so it's galvanized a ton of innovation and a ton of new ideas on how that can be done throughout the natural gas system," said Fox. Most of those ideas revolve around lowering the methane intensity of natural gas production or sourcing low-methane intensity natural gas, such as from biowaste, said Fox. Some environmental advocates are skeptical that emissions from natural-gas based hydrogen production can be driven low enough to qualify for the highest $3/kg tier with existing technology and that most oil and gas companies will instead have to use less lucrative 45Q credits that apply to carbon capture and storage technology (CCS). However, at least one major energy company, ExxonMobil, has said it is seeking 45V to advance its massive natural-gas based hydrogen and ammonia project in Baytown, Texas. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Norway plans to cut GHGs, but remain oil, gas producer

10/04/25

Norway plans to cut GHGs, but remain oil, gas producer

London, 10 April (Argus) — Norway's government has proposed a greenhouse gas (GHG) emissions reduction of a minimum 70-75pc by 2035, from a 1990 baseline, but has also committed to the country remaining "a stable and predictable supplier of oil and gas produced with low emissions". The government today set out plans for a 2035 GHG reduction target, as well as a wider climate plan for the country. The 2035 GHG reduction targets build on Norway's 2030 goal of "at least" a 55pc reduction in GHGs, again from 1990 levels. Norway has a legislated goal of "a low-emission society" by 2050 — GHG reductions of 90-95pc from the 1990 baseline. Norway's government underlined its commitment to Paris climate agreement goals and phasing out the use of fossil fuels "towards 2050", but also said that it would "not prepare a strategy for the end phase of Norwegian oil and gas". "The government's plan is about phasing out emissions, not industries", it said, noting that Norway is "a significant contributor to Europe's energy security". Norway is the largest producer and only net exporter of oil and gas in Europe. "The government will further develop the petroleum industry and facilitate the future provision of fields… production will continue to be efficient and with low emissions," the government said. It aims for the country's oil and gas sector — the country's highest-emitting industry — to bring emissions from production to net zero in 2050. The bulk of oil and gas emissions are from downstream use — known as scope 3. Norway plans to achieve the majority of its proposed 70-75pc GHG cuts through national measures, including reduced fossil fuel use and both technical and nature-based carbon removals. It also plans to purchase emissions reductions from outside the EU and European Economic Area. This refers to internationally transferred mitigation outcomes (ITMOs) — emission credits — under Article 6 of the Paris climate agreement. Norway's parliament will consider the proposals. Once legislated in the country's climate act, Norway plans to communicate its updated plans to the UN. Signatories to the Paris climate agreement are expected to submit updated climate plans — known as nationally determined contributions (NDCs) — to UN climate body the UNFCCC every five years. The deadline for NDCs setting out climate goals up to 2035 was in February, but many countries have yet to submit plans . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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