Europe was the most prominent & biggest importer in the global liquified natural gas sector in the year 2022, with the region buying considerably higher volumes than its competitors as it attempts to replace the shrinking Russian pipeline gas supplies. As per the news, EU nations acquired 101mn tonnes last year, which is 58% more than in the entire of 2021, as per the data provided by Refinitiv.
In previous years, the EU fall down to Japan and China on LNG imports but Russia’s attempt at energy weaponisation since its invasion of Ukraine has compelled the bloc to adopt alternative fuel sources.
Due to Europe’s requirements to import higher volumes to cater to its storage facilities in 2023, the global LNG market is expected to stay tight, possibly pushing up costs for gas users across the world.
“When the prices increase in Europe, Asia undoubtedly is required to expand the amount it pays accordingly to survive the competition to attract LNG cargoes,” stated Olumide Ajayi, senior LNG analyst at Refinitiv. “Europe has turned into a top-notch market.”
https://www.elibrary.imf.org/view/journals/001/2022/145/article-A001-en.xml