European LNG imports to rise this summer – Thomson Reuters

Estimates of imports of liquefied natural gas (LNG) to Europe for this summer are significantly higher than the actual level of imports from last year, according to figures in Thomson Reuters’ latest LNG Seasonal Outlook.

The Outlook also predicts that cargoes will arrive in more varied locations. Last year, the bulk of ‘excess’ LNG cargoes arrived in north-west Europe but this year Thomson Reuters expects LNG to be distributed among import facilities in both south and north-west Europe. Excess LNG cargoes tend to arrive in Europe after demand has been fulfilled elsewhere.

The predicted rise is due to lower LNG prices combined with a supply glut in the market. This is expected to result in an increase in LNG imports to Europe of 8bn cubic metres (bcm) from April to September, says Thomson Reuters.

Despite strong demand growth in Asia and the Middle East, growing supply from new Australian projects as well as the US beginning to export LNG will add to global supplies. As the Asian spot price continues to fall Europe will become a more attractive destination for LNG exporters.

The prediction follows the launch of the European Commission’s energy security package which places a strong emphasis on increasing Member State access to LNG (see Energy World March).