BAKU, Azerbaijan, July 9. Europe is likely to need an additional 15-20 bcm or more of LNG next year, on top of the 43 bcm increase in 2022, Trend reports with reference to Oxford Institute of Energy Studies (OIES).
“Looking ahead to 2023, Europe is likely to require even more LNG with pipeline imports from Russia overall anticipated to be lower than in 2022. On the positive side, LNG supply growth is expected to continue with new capacity coming onstream in Indonesia (Tangguh T3) and Mozambique (Coral FLNG), together with full year capacity available from the new and returning projects in 2022, better feedgas prospects in Trinidad and Nigeria, and the return of the Freeport terminal to full operational capacity. Overall, LNG export capacity growth could be very strong in 2023, adding possibly up to 50 bcm to available supply,” reads the latest OIES report.
The Institute experts note that this is good news for Europe, although in order for the region to import more additional regasification capacity will be required, especially in Northwest Europe.
“However, there is likely to be stronger competition next year from demand growth in Asia, with a particularly strong rebound expected in China, more growth in the ASEAN countries (with Vietnam and the Philippines adding to demand) along with India, Pakistan, and Bangladesh. Europe is likely to need an additional 15-20 bcm or more of LNG next year, on top of the 43 bcm increase in 2022. If some parts of Asia (especially China) are growing strongly, this may only be achievable with lower demand coming from Japan, Korea, and Taiwan (the traditional importers) and Central and South America. In 2023 the global supply-demand for natural gas could be even more precariously balanced than in 2022.”