BAKU, Azerbaijan, April 16. Annual LNG imports into Europe are projected to increase by nearly a quarter (or 25 bcm) in 2022 to their highest level on record, Trend reports with reference to the International Energy Agency (IEA).
The agency notes that the Asia Pacific region – led by China – is expected to see a modest 3 percent (or 9 bcm) increase in LNG demand as some price-sensitive volumes are redirected to Europe. Central and South America is set to experience a 33 percent (or 8 bcm) decline in LNG inflows as hydro reservoir levels in Brazil recover following last year’s historic droughts. The balance of small changes in the rest of the world is close to zero.
“North America remains the main engine of LNG export growth globally, accounting for 65 percent of the net increase in LNG output in 2022. LNG exports from the United States are expected to grow by 19 percent, driven by the start-up of new liquefaction capacity at Sabine Pass Train 6 and the Calcasieu Pass terminal in Louisiana, and higher utilisation of existing facilities in response to very attractive export economics. Africa, Europe, Central and South America and Eurasia make smaller contributions to global LNG supply growth in 2022, while the Asia Pacific region and the Middle East register small declines,” reads the IEA report.
The report says that Europe’s net LNG imports rose by a remarkable 70 percent (or 18 bcm) in that quarter, as the continent compensated for the drop in Russian pipeline gas supplies mainly by increasing its LNG imports. The surge in European LNG inflows was especially sharp in January when net imports were up by a staggering 174 percent y-o-y. Rising LNG inflows to Europe were mainly drawn away from the Asia Pacific region, which saw an 8 percent y-o-y decline in net LNG imports in Q1 2022.
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