.jpg)
BAKU, Azerbaijan, June 18
By Leman Zeynalova - Trend:
Azerbaijani gas to give boost to European pipe imports recovery from 2020 lows, Trend reports with reference to the Oxford Institute of Energy Studies (OIES).
Eurogas association refers to the OIES analysis saying that European pipe imports are expected to recover from the low 2020 levels, through to the mid-2020s, as volumes from Azerbaijan increase as well as the delayed Nordstream 2 beginning operations.
“As the next wave of LNG supply comes onto the market, however, pipeline imports ease back a little. Europe saw an increase in LNG imports in 2019/20 to over 110 Bscm. The current surge of European LNG imports is expected to fall as global LNG demand rises without a corresponding increase in new LNG supply. In 2021 this may lead to a marginal tightness in the market as strong European storage injection is expected to happen without a corresponding increase in LNG imports,” says Eurogas.
The association believes that the interesting period to examine is the years between 2022 and 2026.
“During this period, the LNG market is expecting a reduced volume of new LNG supply to arrive onto the market. The surge in final investment decisions (FIDs) was in 2019 and most of these are not expected to come online until 2024/5. There are, therefore, only a few projects scheduled to start up over the next three years. This period of tighter supply means that some Middle East LNG is likely to be diverted to Asian markets with reduced LNG import volumes into Europe during this period. This next wave of supply is expected to lead to another surge in European LNG imports to well above the historically high 2019/20 levels, reaching over 130 Bscm by 2030.”
---
Follow the author on Twitter: @Lyaman_Zeyn