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EU looks to head off gas squeeze amid Russian LNG ban talk

7 10
23.01.2025

European demand for liquefied natural gas (LNG) is expected to rise sharply in 2025, as the super-chilled fuel continues to play an important role in the continent's energy mix.

LNG imports into Europe are forecast to increase by 13% this year by the analytics group Independent Commodity Intelligence Services (ICIS). That comes after a decline in 2024, when volumes fell compared to the highs seen in the immediate aftermath of Russia's full-scale invasion of Ukraine in 2022.

The increased demand comes as the EU is emptying its gas storage facilities at the fastest rate since the energy crisis that followed the invasion almost three years ago.

"Europe is more import dependent on LNG now than before, because of the drop in Russian gas imports," Ed Cox, a global LNG markets analyst with ICIS, told DW. "So that means Europe is more connected to fundamentals in a global market than ever before."

However, he believes that despite some fears around a potential scramble for gas and a risk of surging prices, the situation is "overblown" and that Europe will be able to meet its needs. "Europe will get enough LNG in, but it might mean that European prices have to go higher to compete with Asia," he said.

Much of the focus has........

© Deutsche Welle