While a rush to increase import capacity in the short term is justified, the race to install more terminals could result in an oversupply of LNG import capacity in the long run.
if the EU manages to continue reducing natural gas consumption and accelerates the rollout of wind and solar power capacity. to unload at a few of the import facilities. But as the winter progressed, several new terminals became operational, including three in Germany and one in the Netherlands.
The power sector was the only sector in which natural gas demand in Europe rose in 2022 compared to 2021, but a record-high EU capacity installed across solar and wind sources – around 50 GW – avoided the need for around 11 bcm of natural gas in the power sector.
However, demand for LNG by 2030 will range between 150 bcm according to IEEFA forecast, and 190 bcm according to S&P Global Commodity Insights forecast, the analysis showed. "It may be the case that the LNG terminals are not fully utilized. But you need them as an insurance premium," RWE's CEO Markus Krebber said in the After a flurry of LNG import capacity additions in 2022, the momentum is set to continue this year, Wood Mackenzie said in a "We expect project momentum to continue into 2023, and by 2027, we forecast that Europe will have added between 65 bcm/yr and 150 bcm of new regas capacity," WoodMac said.