Is European regas prepared for future LNG supply?

LNG imports to Europe have spiked over the past 12 months. Utilisation has been pushed to record levels, testing import and sendout constraints in some terminals, especially in Northwest Europe. This will continue into 2020 followed by another build up in LNG imports in the mid-2020s. During these periods, regas capacity will be in high demand. Monthly utilisation levels will hit capacity and more will be needed to accommodate the supply peaks. Europe’s long-term LNG demand will be sustained by the region’s growing gas import dependency as indigenous production falls. Some operating terminals have plans to expand and several new projects have been proposed, but none have been sanctioned. Long-term confidence in Europe’s future LNG demand and regas capacity bookings are needed before financing for projects can be secured and final investment decisions (FIDs) can be made.