June, 2025
(referenced by ACER2025 report)
We conclude our summary series of the ACER Monitoring Report 2025 by focusing on its final chapter: the role of LNG import terminals. But why would the European Commission dedicate so much emphasis to LNG terminals in its annual gas market review?
The Role of LNG Import Terminals in the EU
As of January 2025, the EU’s total regasification capacity reached 243 bcm, marking a 68 bcm increase since August 2022. This rapid expansion served three critical purposes:
- Alleviating congestion in LNG supply and pipeline systems,
- Enhancing gas market flexibility, and
- Easing price pressure from the 2022–2023 energy crisis.
Notably, ~75% of the capacity growth came from Floating Storage and Regasification Units (FSRUs), while 25% stemmed from expansions at existing terminals.
Why FSRUs?
FSRUs offer several advantages over onshore terminals:
- Faster permitting and deployment,
- Lower dependency on land availability,
- Lower upfront CAPEX,
Yet, they are often limited in scale and have higher OPEX, making them more suitable for medium-sized projects.
Key Highlights as of End-2024
- +21 bcm (9%) increase in regasification capacity YoY.
- Germany relocated its Neptune FSRU from Lubmin to Mukran.
- New terminals launched:
- Energos Power FSRU (Mukran),
- Alexandroupolis (Greece).
- Zeebrugge Terminal (Belgium) added +4 bcm in early 2024, with another +2 bcm slated for 2025.
- Total EU capacity now stands at ~260 bcm annually, equivalent to 70% of average EU gas demand.
Terminal Utilisation Rates: Trends and Implications
In 2022–2023, utilisation rates soared as LNG terminals became pivotal in managing supply flexibility and storage optimization.
In contrast, 2024 saw a drop in utilisation, due to:
- High storage carryovers from the 2023/24 winter,
- Reduced summer refilling demand.
Yet, Q4 witnessed a brief rebound due to colder weather and rising consumption.
Impact of Low Utilisation
- Lower regasification fees and service income,
- Delay in ROI for recently built or expanded terminals,
- Reduced incentive for long-term capacity booking.
Impact of High Utilisation
- Revenue opportunities via congestion pricing, re-exports, temporary storage, etc.
- Enhanced commercial and strategic value.
The Multifunctional Role of LNG Terminals
LNG terminals serve five major functions, often overlapping:
- Seasonal Support: Complement UGS to manage seasonal swings.
- Primary Supply: In markets with limited storage/pipeline entry.
- Pipeline Complement: Reinforce base-load supply.
- Market Integration: Improve EU internal price convergence.
- Supply Diversification: Reduce geopolitical risk.
Example: France, with a 50% utilisation rate in 2024, used LNG to cover 77% of its gas demand—reinjecting surplus into storage or exporting to neighbors in summer.
Terminal Value Beyond Utilisation Rates
LNG terminals provide system-level value, far beyond simple throughput metrics:
- For Spain and the Baltics, terminals act as essential supply sources during winter peaks.
- France, Belgium, and Croatia rely on LNG to balance pipeline rigidity.
- Eastern and Southeast Europe expanded Krk and Alexandroupolis terminals to diversify away from Russia.
Future role of LNG Terminals in the Era of Decarbonization
As the EU moves toward net zero, existing LNG terminals are being re-evaluated for low-carbon fuel compatibility, including:
- Bio-LNG: from organic waste or synthetic methane (E-LNG),
- Hydrogen derivatives: ammonia, methanol, LOHC,
- Hydrogen terminals: under planning, but still early-stage for liquefied H₂.
Example: Rotterdam Gate Terminal is piloting green ammonia import handling.
While pure liquefied hydrogen faces technical and economic hurdles, ammonia and methanol offer pragmatic, near-term alternatives.
Utility LNG Companies’ Insight: LNG Terminals Are Our Frontline Defense
In Europe, where domestic production and pipeline access still exist, LNG terminals play a critical buffer role.
In other countries, where LNG is the only viable import route, LNG terminals are more than just infrastructure—they are a national safeguard.
While some critics argue Major Utility LNG Companies’ terminals face overcapacity or stranded asset risks, redundancy is resilience. In a world of uncertain geopolitics, LNG terminals are our energy firewall.
Their evolving role in decarbonization—like ammonia storage or hydrogen blending—further strengthens their long-term utility.
The challenge lies in Major Utility LNG Companies and policy institutions ensuring full utilization—commercially, operationally, and strategically.
Final Reflection
From price stability to energy security, from peak shaving to decarbonization readiness—LNG terminals are evolving into multipurpose hubs.
the existing LNG terminal infrastructure is not excess—it is essential.