European LNG import capacity to rise sharply in 2023

Spanish Market: Natural gas
29/12/22

A swathe of new LNG import capacity set to come online in the coming months and later next year could lift Europe's aggregate LNG import capacity by 20pc by December 2023, as the region seeks to do away with Russian pipeline supply.

Total European LNG import capacity could stand at around 250mn t/yr by the end of next year from 210mn t/yr at present, if planned projects and expansions are finalised by current timelines. The sharp rise is mainly concentrated in the first half of next year, with new German import terminals driving most of the increase.

Germany has just commissioned the first of its three planned import terminal that are scheduled to start up this winter. The 170,000m³ Hoegh Esperanza floating storage and regasification unit (FSRU) reached the planned 5.8mn t/yr Wilhelmshaven facility on 15 December, with test sendout starting on 21 December. The 140,000m³ Neptune FSRU then arrived at the 5.2mn t/yr Deutsche Ostsee in Lubmin on 16 December, although the exact start date remains unclear. And next month, the 4mn t/yr Brunsbuttel import facility is set to receive an FSRU.

Germany was the largest importer of Russian pipeline gas over recent years, but has greatly accelerated its plans to start importing LNG following a slowdown in receipts from the country. Germany now has 10 LNG import terminals it plans to bring online over the next decade, and has also signed a spate of supply contracts with producers.

Later into next year, three more import terminals could begin operations in Germany. The 138,000m³ Excelsior FSRU is set to be the second unit to operate at Wilhelmshaven as part of a 5.8mn t/yr import project jointly managed by Tree Energy Solutions (TES), Engie and Eon, with operations slated to begin in October. This could be followed by one facility in Stade and second project in Lubmin that are set to come on line before the end of the year. One project is scheduled to use the 174,000m³ Transgas Power, and the same-sized Transgas Force, though further details on exact import capacities have yet to be announced.

Another terminal set to come on line in the coming weeks is the 3.8mn t/yr project in Inkoo, Finland, which will bolster gas supply to not only Finland, but also Estonia and further into the Baltic region. The 150,900m³ Exemplar FSRU reached Inkoo on 28 December, and Finland's Gasgrid announced a target for the terminal to start distributing gas from mid-January.

Turkey could also add to its 34.8mn t/yr of existing import capacity by early next year. The planned Saros import project is slated to start operations next month, with the 180,000m³ Vasant FSRU understood to have been secured by the country's Botas for the project. The Saros project is slated to have 20mn m³/d of regasification capacity, which would be equivalent to around 5.6mn t/yr of LNG import capacity.

France is planning to boost LNG import capabilities through expanding existing projects, while also securing an additional FSRU. Optimisation and debottlenecking processes at the Dunkirk and Fos Cavaou import terminals are set to lift import capacity by 2mn t/yr across both terminals by the start of next year. TotalEnergies also plans on bringing online the 2.9mn t/yr Le Havre import terminal, using the 145,000m³ Cape Ann FSRU, which is scheduled to arrive in June 2023 ahead of commissioning in September.

There are several more planned terminals that are targeting start-ups next year elsewhere in Europe, but their timelines are less clear. Italy's Snam is planning to bring online a 3.8mn t/yr terminal in Piombino using the 170,000m³ Golar Tundra, although strong opposition to the project from local authorities could threaten its scheduled start up in May. Albania is aiming to start operations at its Vlora import facility in July, but which FSRU will be used is unclear, given the Excelsior is now intended for the second Wilhelmshaven facility. And Cyprus's planned Vasilikos LNG import terminal has yet to start operations, with construction of the terminal beginning in 2020 and an original start date targeted for the first quarter of this year. Greek firm Motor Oil is also planning to commission the 3.3mn t/yr Dioriga at the end of next year, or possibly the start of 2024, which would make it Greece's second import facility. However the project has yet to reach a final investment decision (FID). Greece could also see another import terminal start operations in January 2024, with the 4.3mn t/yr Alexandroupolis terminal — that has already reached FID, and construction has already started.

Regasification additions continue into 2024 and beyond, with expansions at Belgium's Zeebrugge, France's Fos Cavou and Poland's Swinoujscie set to add a combined 6.5mn t/yr of import capacity in the first quarter of 2024.

By Ellie Holbrook

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

03/04/25

Trump to 'stand firm' on tariffs as markets crash

Washington, 3 April (Argus) — President Donald Trump does not intend to back down from his plan for sweeping import tariffs that have already caused a sell-off in global equity markets and some commodities, administration officials say. The tariffs — which will start at 10pc for most imports on 5 April before steeper country-specific tariffs take effect on 9 April, with exceptions for some energy and mineral imports — have caused key stock indexes to drop by as much as 5pc, with even larger declines in crude futures, as investors brace for lower growth and a higher chance of a recession. Trump earlier today defended the tariffs, as he prepared to leave the White House for a dinner tonight at a golf tournament at one of his resorts in Florida. "THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING," Trump wrote in a social media post before major stock markets opened. Trump's cabinet has downplayed the short-term price effect of the tariffs, which they say will boost economic growth in the US and cause a resurgence in domestic manufacturing. US commerce secretary Howard Lutnick said he does not think there is "any chance" that Trump will rescind the tariffs, and said Trump will only begin to work on new trade deals once a country has "really, really changed their ways" on trade practices. "Trump is going to stand firm because he is reordering global trade," Lutnick said today in an interview with CNN. "Make no mistake about it, America has been exploited, and he is done allowing America to be exploited." Other administration officials have suggested a greater potential for lower tariffs in the near-term. US treasury secretary Scott Bessent has encouraged world leaders to "take a deep breath" and not to "panic" because the tariff rates that Trump announced were a "ceiling" that might come down, so long as there was no retaliation. "Don't immediately retaliate, let's see where this goes, because if you retaliate, that's how we get escalation," Bessent said on 2 April during interview on Fox News. The tariffs have caused bipartisan backlash on Capitol Hill, but so far legislative action has been symbolic and unlikely to become law. The US Senate, in a bipartisan vote on 2 April, approved a joint resolution that would end the justification Trump has used to put tariffs on Canada. US senators Chuck Grassley (R-Iowa) and Maria Cantwell (D-Washington) introduced a bill today to eliminate most new presidential tariffs after 60 days without approval by the US Congress. Democrats say the tariffs will force consumers to pay far more on everyday goods, with revenue offsetting Republican plans to provide more than $5 trillion in tax cuts. "Donald Trump is using tariffs in the dumbest way imaginable. In fact, Donald Trump slapped tariffs on penguins and not on Putin," US Senate minority leader Chuck Schumer (D-New York) said today, in reference to Trump's decision to put a 10pc tariff on an island populated only with penguins. Trump has claimed his country-specific tariffs are "reciprocal" even though they have no relation to the tariffs each country charges on US imports. Instead, Trump's tariffs were calculated based on a universal equation that is set at half of the country's trade deficit with the US, divided by the country's imports from the US, with a minimum tariff rate of 10pc. US major trading partners are preparing for retaliatory tariffs. Canada's prime minister Mark Carney said he would respond to Trump's tariffs on automobiles, which took effect today, by "matching the US approach" and imposing a 25pc tariff on auto imports that do not comply with the US-Mexico-Canada free trade agreement. China said it was preparing unspecified countermeasures to US tariffs that would be set at 54pc. Trump's cabinet today dismissed the market reaction to the tariffs. Stock markets are going through a "short-term adjustment" but the tariffs will ultimately result in more growth and additional investments, US Small Business Administration administrator Kelly Loeffler said today in an interview on Fox News "The gravy train is over for the globalist elites," said Loeffler, who previously was a top executive at US exchange operator ICE. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

South Korea’s GS Energy seeks term LNG from 2028

03/04/25

South Korea’s GS Energy seeks term LNG from 2028

Singapore, 3 April (Argus) — South Korean private-sector firm GS Energy's subsidiary GS Energy Trading Singapore is seeking LNG deliveries starting from 1 January 2028, over a 5-15 year period. The first round of offers will be due on 25 April and the second to close on 1 August later this year. The firm has requested volumes of up to 0.81mn t/yr in 2028 and up to 0.97mn t/yr from 2029 onwards. This is equivalent to around 13-14 cargoes/yr in 2028 and about 16-17 cargoes/yr from 2029 onwards, assuming an average LNG cargo size of 60,000t. The cargoes will be delivered to the country's 10.8mn t/yr Boryeong terminal, which is owned by power producers SK E&S and GS Energy. The firm has also specified for offers to be linked to Brent or a hybrid of Brent and Henry Hub. South Korean utility Korea South-East Power in June 2024 also signed an agreement with TotalEnergies for a five-year term delivery of up to 500,000 t/yr of LNG to South Korea from 2027. Meanwhile, state-owned gas incumbent Kogas is expected to operate with a smaller pool of long-term LNG supplies from 2025, with the government granting it more flexibility in its procurement strategy. Long-term contracted supply volumes may typically be priced at a higher premium, and could be deemed as a small price for buyers to secure supply security, traders said. By Naomi Ong Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s gas leaders hit out at market intervention

02/04/25

Australia’s gas leaders hit out at market intervention

Sydney, 2 April (Argus) — Senior figures in Australia's upstream gas sector have hit out at plans for intervention in the heavily regulated industry, as debate continues on how to best address domestic supply shortfalls later this decade. The federal Coalition in March announced National Gas Plan including a 50-100 PJ/yr (1.34bn-2.68bn m³/yr) domestic reservation system aimed at forcing the three LNG exporters based in Queensland's Gladstone to direct more supply to the eastern states' market. But oversupplying the market to drive down prices would destroy the viability of smaller gas projects, Australian independent Beach Energy's chief executive Brett Woods said at a conference in Sydney on 1 April. The domestic-focused firm, which will export some LNG volumes via its Waitsia project in 2025, warns that such a move by the Peter Dutton-led opposition would reduce export incomes while harming Australia's international reputation. The volumes impacted by the policy could reach around 900,000-1.8mn t/yr. Expropriation of developed reserves is equivalent to breaking contracts with LNG buyers and with the foreign and local investors that the country needs for ongoing economic security, Woods said on 1 April. Domestic gas reservation systems put in place by the state governments of Western Australia (WA) and Queensland, designed to keep local markets well supplied, were "clearly supportable", Woods said, but only future supply should be subject to the regulations. LNG terminals, which represent about 70pc of eastern Australia's total gas consumption and shipped 24mn t in 2024 , should not be blamed for the failure of governments to expedite new supply and plan for Australia's gas future, head of Shell Australia Cecile Wake said in response to the Coalition's proposal. Shell's QGC business supplied 15pc of its volumes to the local grid, with the remainder shipped from its 8.5mn t/yr Queensland Curtis LNG project, Wake added. Canberra has moved to promote gas use as a transition fuel to firm renewable energy in line with its 2030 emissions reduction targets, but progress has been slow as reforming laws appear to be hampering development . The state governments, particularly in gas-poor Victoria and New South Wales (NSW), must recognise the need for locally-produced supply and streamline the approvals processes, especially environmental permits, executives said. But despite pleas for an end to years of interventionist policy — including the governing Labor party's measures to cap the price of domestic gas at A$12/GJ , Australia's fractured political environment and rising cost of living has sparked largely populist responses from its leaders. A so-called "hung" parliament is likely to result from the 3 May poll , with a variety of mainly left-leaning independents representing an anti-fossil fuel agenda expected to control the balance of power in Australia's parliament. LNG debate sharpens Debate on the causes of southern Australia's gas deficit has persisted, and the ironic outcome of underinvestment in gas supply could be LNG re-imports from Gladstone to NSW, Victoria and South Australia, making fracked coal-bed methane — liquefied in Queensland and regasified — a likely higher-emissions alternative to pipeline supply. Several developers are readying for this possibility , which is considered inevitable without action to increase supply in Victoria or NSW, increase winter storages or raise north-south pipeline capacity. Australian pipeline operator APA appears to have the most to lose out of the active firms in the gas sector. APA chief executive Adam Watson this week criticised plans for imports, because relying on LNG will set the price of domestic gas at a detrimental level, raise emissions and decrease reliability of supply, Watson said. The firm is planning to increase its eastern pipeline capacity by 25pc to bring new supplies from the Bass, Surat and Beetaloo basins to market. But investment certainty is needed or Australia will risk needing to subsidise coal-fired power for longer if sufficient gas is unavailable to back up wind and solar generators with peaking power, Watson said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

LNG stocks at Japan’s power utilities rise

02/04/25

LNG stocks at Japan’s power utilities rise

Osaka, 2 April (Argus) — LNG inventories at Japan's main power utilities increased during the week to 30 March, as warmer weather reduced electricity demand for heating purposes and limited gas-fired generation. The utilities held 2.24mn t of LNG on 30 March, up by 22pc from a week earlier, according to a weekly survey by the trade and industry ministry Meti. This was higher by 51pc compared with 1.48mn t at the end of March 2024 and up by 10pc against 2.03mn t — the average end-March stocks over 2020-24. A seasonal rise in temperatures weighed on power demand, which fell by 12pc on the week to 87GW across 24-30 March, according to the Organisation for Cross-regional Co-ordination of Transmission Operators (Occto). This resulted in a 24pc fall in gas-fired output to an average of 24GW during the period, the Occto data showed. Coal- and oil-fed generation also fell by 14pc to 23GW and by 21pc to 409MW respectively in the same period. The lower demand has created extra supplies to be sold on the wholesale market. This has weighed on day-ahead prices on the Japan Electric Power Exchange (Jepx) and worsened generation economics for the country's thermal power plants. Margins at a 58pc-efficient gas-fired unit running on oil-priced LNG supplies fell into negative territory, with the spark spread averaging at a loss of -¥2.28/kWh ($15.22/MWh) across 24-30 March, compared with the previous week's profit of ¥0.84/kWh. The 58pc spark spread using spot LNG widened the deficit, with the margin averaging at a loss of -¥3.79/kWh against the previous week's -¥0.80/kWh, based on the ANEA — the Argus assessment for spot LNG deliveries to northeast Asia. Coal remained competitive in Japan's merit order. But the dark spread of a 40pc-efficient coal-fired unit also fell by 64pc on the week to an average of ¥1.63/kWh over 24-30 March, based on Argus' spot coal and freight assessments. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Next US tariffs to take effect 'immediately'

01/04/25

Next US tariffs to take effect 'immediately'

Washington, 1 April (Argus) — President Donald Trump plans to announce a sweeping batch of tariffs on Wednesday afternoon that will take effect "immediately", the White House said today. Trump will unveil his much anticipated tariff decision Wednesday at 4pm ET during a ceremony at the White House Rose Garden. While the administration has announced the effective date, there is little clarity on what goods will face tariffs at what rates and against which countries, leaving the government agencies that will be tasked with enforcing new tariffs largely in the dark. "The president has a brilliant team of advisers who have been studying these issues for decades, and we are focused on restoring the golden age of America and making America a manufacturing superpower," the White House said today, brushing off criticism from economists, industry groups and investors. Economic activity in the US manufacturing sector contracted in March as businesses braced for Trump's tariff threats. Trump has previewed or announced multiple tariff actions since taking office. The barriers in place now include a 20pc tariff on all imports from China, in effect since 4 March, and a 25pc tax on all imported steel and aluminum, in effect since 12 March. A 25pc tariff on all imported cars, trucks and auto parts, is scheduled to go into effect on 3 April, the White House confirmed today. Trump and his advisers have previewed two possible courses of action for 2 April. Trump has suggested that all major US trading partners are likely to see a broad increase in tariffs in an effort to reduce the US trade deficit and to raise more revenue for the US federal budget. But Trump separately has talked about the need for "reciprocal tariffs", contending that most foreign countries typically charge higher rates of tariffs on US exports than the US applies to imports from those countries. In that scenario, high tariffs become a negotiating tool to bring down alleged foreign barriers to US exports. Treasury secretary Scott Bessent told Fox News on Monday night that the second course is the one Trump is more likely to take. Trump will announce "reciprocal tariffs" and "everyone will have the opportunity to lower their tariffs, lower their non-tariff barriers, stop the currency manipulation" and "make the global trading system fair for American workers again", Bessent said. But the White House insisted today that the new tariffs will not be a negotiating tool. Trump is "always up for a good negotiation, but he is very much focused on fixing the wrongs of the past and showing that American workers have a fair shake", the White House said. Trump's words and actions already have drawn retaliatory tariffs from Canada and China, and the EU is preparing to implement its first batch of counter-tariffs in April. Trump, for now, has deferred his tariff plans for imported Canadian and Mexican oil and other energy commodities. But the US oil and gas sector, which depends on pipelines and foreign-flagged vessels to transport its crude, natural gas, refined products and LNG, will feel the effects of tariffs on imported steel and proposed fees on Chinese-made and owned vessels calling at US ports. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more