Overview:

Spain was Europe’s largest importer of LNG (net of re-exports) in 2020 (15.37 MT), followed by the UK (13.43 MT), France (13.06 MT), Turkey (10.72 MT) and Italy (29.07 MT). Gibraltar was Europe’s smallest importer (0.05 MT). In the EU, Q1 2021 LNG imports fell 29% year-on-year and for the UK the figure was slightly less, with an approximately 20% reduction year-on-year.

Belgium:

Belgium has one LNG import terminal – the?Zeebrugge terminal?– which provides storage, regasification, bunkering, cool down, reloading, trans-shipment, truck loading and rail loading services. Qatar Petroleum has signed up for the full capacity of the Zeebrugge LNG terminal (currently 6.6 MTPA) from the end of current long-term unloading contracts until 2044. In February 2021, Fluxys LNG reached FID to build 6 MTPA of additional regasification capacity. 4.7 MTPA will be operational in 2024 and the remaining 1.3 MTPA by 2026. LNG imports into Belgium in 2020 were signicantly lower than in 2019 (7.33 MT showing a decline of -1.9 MT or 36.9%) as were small-scale reloads (down by 66.1%), however truck loading in Belgium increased by 23% over the same period.

Croatia:

The 1.9 MTPA?FSRU LNG Croatia?on Krk Island in the northern Adriatic Sea started commercial operations in January 2021, as scheduled. On 27 July 2021, it announced the delivery of its first LNG cargo from Qatar by Q-Max. The FSRU LNG Croatia completed its first reloading in May 2021, completing its existing unloading and regasification services.

Cyprus:

Construction began on the 2.5 bcm/y?Cynergy FSRU?to be located offshore in Vasilikos Bay, near Limassol, in July 2020. The facility is due to come online during the first quarter of 2022. Cyprus currently doesn’t have a gas network so the regasified LNG will feed an 868 MW power plant and local industrial gas demand.

France:

France has four LNG import terminals with (currently) a total capacity of 34.65 bcm/y. All four terminals now provide bunkering and truck loading services (in addition to traditional regasification services). LNG imports into France in 2020 fell by 16.1% compared to 2019, and truck loading in France increased by 31% over the same period.

Dunkerque?came into operation in 2017 and is the largest LNG regasification terminal in Continental Europe (13 MTPA), supplying gas to French and Belgium markets. It launched truck loading services in 2020 offering 3,000 truck loading slots on a short-term and long-term basis. Its jetty has been adapted to provide small-scale unloading and reloading services which will be available this year.

Montoir de Bretagne?came into operation in 1980. It has a total capacity of 10 MTPA. In October 2020, the Montoir-de-Bretagne Terminal received its first LNG delivery by Q-Max. In May 2021, the terminal’s operator?–?Elengy?–?halted send-out at its Montoir-de-Bretagne LNG terminal following a leak.

Fos Cavaou: The total capacity at Fos Cavaou is currently 6.8 MTPA. Expansions plans will result in capacity increasing to 8 MTPA from 2024 and 9.6 MTPA from 2030.

Fos Tonki?came into operation in 1972. Plans to decommission the terminal have been replaced with Elengy’s decision to extend operations to 2028. All capacity is booked until that date.

Finland:

Finland has two small-scale LNG import terminals that provide bunkering and truck loading services.

Germany:

In addition to its commitment to phase out coal-fired power by 2038, Germany has committed to stop nuclear power production by 2022, and gas supply to Germany from the Dutch Groningen field is also due to end in 2022. As a result, Germany is looking to build its first LNG import terminal to reduce reliance on Russian pipeline gas – with potential sites identified at Brunsbüttel, Wilhelmshaven and Stade.

In November 2020, Uniper suspended its plans to install an FSRU-based offshore?Wilhelmshaven?due to lack of market response.

German LNG Terminal GmbH, a joint venture between Dutch companies Gasunie and Vopak and German company Oiltanking, is proceeding with the development of an initially 8 bcm/y on-shore regasification terminal at?Brunsbüttel?comprising two tanks, a large-scale jetty, a small-scale jetty for bunkering services, a truck loading bay and potentially rail-loading services. In June 2021, the EC approved an exemption from regulated third party access to facilitate the development of the terminal. Synergies with local industrial partners enables the terminal to be carbon neutral. RWE has committed to a significant portion of the terminal’s regasification capacity. In June 2020, RWE and German LNG signed an agreement to develop green hydrogen possibilities via the planned LNG terminal in Brunsbüttel.

In February 2021, Hanseatic Energy Hub launched the open season for the proposed 8.8 MTPA?Stade?LNG terminal, which confirmed market interest. In March 2021, Fluxys joined the project as an industrial partner.

Gibraltar:

Gibraltar’s first LNG terminal (small-scale) became operational in May 2019. Its purpose is to allow Gibraltar to convert from diesel-fuelled power generation to (regasified) natural gas power. The Government of Gibraltar awarded Shell an LNG bunkering license in January 2021.

Greece:

Greece has one operational LNG terminal at?Revithoussa?which has regasification capacity of 7 MTPA. Truck loading and bunkering services are expected to be available at the Revithoussa terminal by 2022 and 2024 respectively. Greece imported 2.2 MT of LNG in 2020, an increase of 4.2% compared to 2019.

Gastrade is developing a second facility in Greece – an FSRU which will be stationed 17.6 km offshore?Alexandroupolis?in Northeastern Greece. The FSRU will have a nominal regasification and send-out capacity of around 4 MTPA.

Italy:

Italy imported 9.07 MT of LNG in 2020 marking a reduction of 7.2% compared to 2019. It has three LNG import terminals: (i)?FSRU OLT Toscana Terminal?which has regasification capacity of 2.5 MTPA; (ii)?Adriatic LNG?at Porto Levante which has regasification capacity of 7.58 MTPA; and (iii)?Panigaglia terminal?at La Spezia which has regasification capacity of 3.75 MTPA.

A small-scale 0.18 MTPA regasification truck loading, and bunkering terminal is under construction in Oristano, Sardinia. The terminal is scheduled to be operational during the summer of 2021.

Lithuania:

Lithuania has one LNG terminal – the?Independence (Klaipeda) FSRU?– which started operations in 2014. It is currently leased by state-owned Klaipedos Nafta from Norway’s H?egh LNG until 2024 when it will be acquired by Klaipedos Nafta with support from the Lithuanian Government. The EC has allowed an exception from EU rules on State Aid to facilitate the acquisition. State Aid is where government support allows a party to gain an advantage over its competitors, and is contrary to EU rules. The FSRU plays an important geo-political role by reducing Eastern Europe’s dependence on pipeline gas from Russia.

Whilst it is generally easier to provide small-scale services at on-shore LNG plants, the FSRU?Independence (Klaipeda)?provides bunkering and truck loading services. In March 2021, the Lithuanian state-controlled energy company, Ignitis Group, announced that it will start supplying regasified LNG to Poland from 2022 via the new GIPL pipeline.

Lithuania imported 1.44 MT of LNG in 2020 which was an increase of 2.7% compared to 2019 Truck loading of LNG in Lithuania increased by 26% in 2020 compared to 2019.

Malta:

Malta has the 0.5 MTPA Delimara FSU and onshore regasification facilities which supply an adjacent gas-fired power plant.

Netherlands:

The Netherlands has one LNG import terminal – the?Gate terminal?– in the Port of Rotterdam. The Gate terminal provides storage, regasification, bunkering, cool down, reloading, trans-shipment, and truck loading services. LNG imports into the Netherlands fell by 8% in 2020 compared to 2019. In 2020, the Netherlands demonstrated the highest increase in truck loading activities in Europe– increasing by 54% compared to 2019 due to increased truck loading activities at the Gate terminal. Small-scale reloading at the Gate terminal also increased by 78.7% over the same period.

Poland:

Poland has one LNG import terminal -?Swinoujscie terminal?– which received €332 million of EU funding evidencing the EC’s commitment to diversify sources of energy supply in Eastern Europe and to reducing the region’s dependency on Russian gas. Poland’s LNG imports increased by 9.8% in 2020 compared to 2019, and truck-loading activities increased by 38% in the same period.

The Swinoujscie terminal is currently undergoing a major expansion, consisting of two phases. The first phase will increase regasification capacity from 5 bcm/y to 8.3 bcm/y. The second phase involves building a second jetty, a third LNG tank (180,000 m3) and a railway siding for rail cars and ISO containers by the end of 2023.

A new regasification terminal 5bn m3/yr FRSU offshore Gdansk is currently being analysed by Poland’s TSO – GAZ-SYSTEM S.A. In 2020, the Gdansk LNG Terminal was included within the list of Projects of Common Interest issued by the EC. The FSRU should be operational by 2025.

Portugal:

Portugal has one LNG import terminal located at?Sines. Portugal’s LNG imports declined by 1.1% in 2020 compared to 2019. The terminal provides truck loading services and is capable of loading 36 trucks per day. In 2020, truck loading activities in Portugal increased by 6% compared to 2019. It carried out its first LNG bunkering in March 2020. Expansion of the terminal is under consideration.

Spain:

Six operating LNG terminals in Spain account for almost one third of Europe’s LNG import capacity at?Bilbao?(5.1 MTPA),?Murgados?(2.6 MTPA),?Barcelona?(12.6 MTPA),?Cartagena?(8.7 MTPA),?Huelva?(8.7 MTPA), and?Sagunto?(6.4 MTPA). A seventh terminal –?El Musel?– has been mothballed.

Whilst Spain retained its position as Europe’s largest LNG importer in 2020 (15.37 MT), imports fell by 2.2% compared to 2019. Small-scale reloading in Spain fell by 0.6% in 2020 compared to 2019, and truck loading increased by 10% in the same period.

The Spanish gas market is relatively illiquid compared to countries in other parts of Continental Europe – largely due to the lack of connecting gas pipeline network. The Pyrenees mountains between Spain and France pose obstacles to building gas pipeline infrastructure which would better connect the Spanish gas market to the rest of Europe.

Spain continues to be a prime player in Europe’s small-scale LNG industry. Two LNG bunkering projects in Barcelona and Algeciras have received €27m of funding via the EU’s Connecting Europe Facility, demonstrating the EU’s intention to reduce pollution in the maritime sector by replacing heavy fuel oil with LNG.

Sweden:

Sweden has two small-scale LNG import terminals that provide bunkering and truck loading services.

Turkey:

Turkey currently has four LNG import terminals. Two terminals at?Aliaga (Etki)?and?Dortyol?are FRSUs, with Turkey’s gas company BOTAS looking to replace the FSRU Challenger at?Dortyol?with a new FSRU. The two onshore terminals at?Izmir?Aliaga?and?Marmara Ereglisi?both provide truck loading services, however Turkey is the only country in Europe whose truck loading activities declined in 2020. In October 2020, BOTAS awarded a contract for a new FSRU to be located offshore?Saros?which is being built in a shipyard in South Korea. In 2020, Turkey was Europe’s fourth largest LNG importer with 10.72 MT of unloaded LNG, marking an increase of 14.4% compared to 2019.

UK:

The UK has three large-scale LNG import terminals. Collectively they imported 13.43 MT of LNG in 2020 making the UK Europe’s second largest LNG importer despite the fact imports into the UK dropped by 0.8% compared to 2019. Truck loading activities in the UK increased by 26% over the same period.

The?Isle of Grain?terminal currently has capacity of 14.3 MTPA and following completion of an expansion for an additional 3.8 MTPA (which is which is due to be completed in by mid-2025), the terminal’s capacity will be 18.1 MTPA – making it the largest import terminal in Europe. The?South Hook?terminal currently has capacity of 15.4 MTPA, and?Dragon?LNG?currently has capacity of 5.6 MTPA.

The UK receives virtually all of its LNG deliveries on a spot (rather than long-term) basis allowing it to be flexible on its LNG import levels.

Glossary of Terms

• Bunkering:?small-scale LNG reloading (i.e. reloading of unloaded LNG onto bunkering vessels fuelled by LNG)

• Bcfd:?billion cubic feet per day

• EC:?European Commission, the EU's executive arm

• ESG:?Environmental, social, and governance

• EU:?European Union

• FID:?Final Investment Decision

• FSRU:?floating storage and regasification unit

• FSU:?floating storage unit

• GHG:?Greenhouse gas

• GIIGNL:?The International Group of Liquefied Natural Gas Importers

• IOC:?International Oil Company

• JKM:?the?LNG?Japan/Korea Marker

• LNG SPA:?LNG sale and purchase agreement

• m3:?cubic metres

• MT:?million tonnes

• MTPA:?million tonnes per annum

• MW:?mega watt

• NBP:?National Balancing Point (NBP), the UK’s virtual trading point for gas

• Net of: an LNG cargo may be unloaded in a country but then reloaded onto another vessel (i.e. the LNG doesn’t remain in the country where it is first unloaded), including by transhipmentre-exports

• Transhipment:?the transfer of a cargo of LNG from one LNG vessel to another

• tCO2e:?tonnes of carbon dioxide equivalent

• TTF: Title Transfer Facility (TTF), the virtual trading point in the Netherlands

• TSO:?Transmission Services Operator

• USD:?United States Dollar