BAKU, Azerbaijan, October 25. In September 2023, Europe faced its third consecutive monthly decline in liquefied natural gas (LNG) imports, marking the lowest level since November 2021, Trend reports via the Gas Exporting Countries Forum (GECF).
The continent's LNG imports witnessed a significant reduction of 22 percent, equivalent to 2.10 million metric tons (Mt), compared to the previous year, ultimately settling at 7.59 Mt. This downturn in Europe's LNG imports can be primarily attributed to several factors, including high underground gas storage levels, decreased gas demand within Europe, and a widening price differential between spot LNG prices in Asia and the TTF price.
Notably, several European nations recorded notable changes in their LNG import patterns, with Belgium, France, Italy, the Netherlands, Spain, and the UK witnessing substantial decreases, while Germany experienced a significant increase. Over the period from January to September 2023, Europe's cumulative LNG imports demonstrated a year-on-year growth of 2.4 percent, amounting to 2.13 Mt and reaching a total of 92.55 Mt.
In Belgium, the decrease in LNG imports can be attributed to reduced gas consumption, elevated gas inventory, and a decline in pipeline gas exports to Germany and the Netherlands. Meanwhile, France experienced a decline in LNG imports due to the increase in pipeline gas from Norway, reduced gas consumption, and increased maintenance at the Fos Cavaou LNG terminal. Italy's reduced LNG imports were influenced by the uptick in pipeline gas from Algeria and abundant gas storage.
The Netherlands, despite witnessing higher gas usage, lower domestic gas production, and a decrease in pipeline gas imports from Norway, observed a drop in LNG imports primarily due to weaker gas exports to Germany and higher gas inventory levels. In Spain, LNG imports decreased as a result of reduced gas demand and elevated gas storage levels.
On the other hand, the United Kingdom experienced reduced gas consumption and decreased pipeline gas exports to mainland Europe, driven by the convergence of NBP and TTF gas prices, leading to lower LNG imports. In contrast, Germany recorded higher LNG imports, mainly due to the increased import capacity of new terminals.
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