BAKU, Azerbaijan, Jan.31
By Leman Zeynalova – Trend:
Europe’s domestic production is expected to remain close to the previous year’s levels in 2022, as lower gas output on the continent is expected to be compensated by recovering gas production in the United Kingdom and Norway, Trend reports with reference to the International Energy Agency (IEA).
“Europe’s import requirements are expected to increase by close to 2 percent compared with 2021, despite its gas demand declining by over 4 percent y-o-y. This will be largely driven by restocking needs, with the region’s underground storage sites standing 15 bcm below their five-year average at the beginning of January. Europe’s LNG imports are set to decline only marginally in 2022. Azeri supplies via TAP are set to reach 10 bcm in 2022,” the agency said in its report.
The agency notes that Europe’s natural gas supply picture remained tight throughout Q4 2021.
“Pipeline deliveries from Russia fell significantly year-on-year, while Europe’s domestic production continued to decline, leaving additional market space for LNG inflows and alternative pipeline suppliers. LNG inflows grew by a remarkable 40 percent y-o-y during Q4, following a drop of 17 percent y-o-y during Q1-3 2021. Stronger LNG deliveries were primarily driven by higher imports from the United States, alone contributing almost 40 percent of net growth in LNG supplies, followed by Egypt and Qatar. Southern Europe accounted for over 60 percent of LNG import growth, with strong inflows into Turkey and Spain. For 2021 as a whole, European LNG imports fell by 4 percent y-o-y, and the United States was the region’s largest LNG supplier,” the report says.
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