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Europe’s LNG imports declined 19% in 2024, IEEFA reports, as US signs its first LNG export authorisation under President Trump
26/2/2025
News
Gas demand reduction policies and renewable energy deployment helped drive a 19% decrease in Europe’s LNG imports in 2024, according to the Institute for Energy Economics and Financial Analysis (IEEFA). Meanwhile, the US has signed its first LNG export authorisation since former President Joe Biden’s temporary freeze on export permit approvals was announced in January 2024.
IEEFA’s latest European LNG tracker shows that the continent’s 2024 LNG demand dropped to its lowest level since 2021. Overall gas consumption reached an 11-year low. The European countries that reduced their LNG imports the most in 2024 were the UK (by 47% year-on-year), Belgium (29%) and Spain (28%).
‘EU efforts to curb gas demand have been crucial for maintaining the continent’s security of energy supply,’ comments Ana Maria Jaller-Makarewicz, Lead Energy Analyst, Europe, at IEEFA. ‘However, as EU gas demand was flat last year, more work is needed to diversify energy supplies and reduce Europe’s exposure to LNG market volatility.’
The decline in LNG demand contrasts with the flurry of investment in new import infrastructure. While the buildout slowed last year, current plans will see Europe’s LNG import capacity grow by 60% between 2021 and 2030, according to IEEFA. This is despite LNG demand being expected to fall further by 2030.
IEEFA forecasts that this could result in Europe’s 2030 regasification capacity having a 30% average utilisation rate.
Countries that have installed or expanded terminals since 2021 include Germany, Netherlands, Turkey, Italy, France, Belgium, Greece, Finland, Poland and Croatia.
Lower demand meant that half of the EU’s LNG import terminals had a utilisation rate below 40%, including some of the new installations, reports IEEFA.
Russian LNG imports on the rise
Almost half (46%) of Europe’s 2024 LNG imports were from the US. Its imports from the country declined by 18% last year. Conversely, European region and EU imports of Russian LNG grew by 12% and 18%, respectively, last year. This is despite the EU’s aim of ending its reliance on Russian fossil fuels by 2027, notes IEEFA.
‘A third of EU imports of Russian LNG were spot trades in 2024. Member states should prioritise phasing out these flows, which aren’t subject to long-term contracts,’ says Jaller-Makarewicz.
France, Spain and Belgium accounted for 85% of Europe’s imports of Russian LNG last year.
IEEFA estimates that EU countries spent €6.3bn on Russian LNG between January and November 2024.
Effect of Ukraine pipeline blockade on LNG imports
Europe’s LNG imports decreased by about 32bn m3 in 2024. This is more than twice the volume of Russian gas that transited via Ukraine last year, reports IEEFA.
Given that this pipeline supply needs to be replaced, and that gas storage needs to be refilled ahead of next winter, European and EU LNG demand is forecast to increase in 2025 – but by a lesser amount than their likely peak LNG consumption in 2022 and 2023, respectively, it says.
Trump presses play on paused US LNG approvals
In related news, US Secretary of Energy Chris Wright and President Donald Trump announced a new export authorisation for the Commonwealth LNG project proposed for Cameron Parish, Louisiana. It is the first major US LNG project to receive an export authorisation for non-free trade agreement countries since President Trump and the Department of Energy lifted the Biden-Harris administration’s freeze on LNG export permit approvals.
Biden announced in January 2024 that the approval process for 17 planned LNG export facilities was to be temporarily halted to evaluate their effects on climate change, economic factors and national security. ‘This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time,’ he said.
Reversing this decision and awarding the new export permit for the Commonwealth LNG project, Wright said: ‘Exporting American LNG strengthens the US economy and supports American jobs while bolstering energy security around the world.’
Once constructed (production is scheduled to begin in early 2029), Commonwealth LNG, owned by Kimmeridge Texas Gas, will be able to export over 1.2bn ft3/d (34mn m3/d) of natural gas as LNG, further cementing the US position as the top global exporter of LNG.
According to the US Energy Information Administration’s most recent Short-Term Energy Outlook, current US LNG exports are expected to reach record highs in 2025, averaging over 15bn ft3/d (425 mn m3/d. These record export levels are accompanied by record highs in current US natural gas production of almost 105bn ft3/d (2.97bn m3/d).
