Can Europe Meet Its Gas Supply Targets?

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The EU has set ambitious targets of securing 50 billion cubic meters (37 million tons) more LNG than last year while increasing its piped gas imports by 10 Bcm to ensure it reduces its Russian gas imports by two-thirds by year's end. Last week, the US committed to supply 15 Bcm of LNG to Europe this year with “expected increases going forward.” But key questions remain about how much regasification capacity Europe has at its disposal and whether there will be enough global LNG supply to allow the EU to meet its targets. On the domestic production side, Europe has very limited options. No deals have been signed yet, but US and German officials met this week with US LNG suppliers to map out options. US LNG output was already hovering at or above capacity before the start of the war in Ukraine, and without any new facilities expected to come on line before 2024, it could prove a long wait. The US exported 16.5 million tons of LNG to the EU in 2021, according to data analytics firm Kpler, and has sent 9.19 million tons so far this year. Peak capacity should rise by almost 18 million tons per year to 107 million tons/yr by end-2022, says the US Energy Information Administration.

LNG Supply, Gas Supply, Gas Pipelines, LNG Contracts
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