Key information
- Germany and Italy have filled the void created by the cessation of flows from Slovakia.
- Austria, Hungary and Slovakia have found other sources of gas.
- The United States has overtaken Russia as Europe’s largest gas supplier.
Central European gas flows have adapted to the end of Russian gas supplies via Ukraine. Germany and Italy stepped in to fill the void created by the halt in flows from Slovakia after Ukraine refused to renew its gas transit agreement with Russia. Slovakia’s only import source is now a connection with Hungary, following Gazprom’s cessation of deliveries to Slovenský plynárenský priemysel (SPP).
Secure alternative sources
Austria, Hungary and Slovakia were expected to be most affected by the cutoff of Russian gas supplies via Ukraine. However, these countries have found alternative sources. Last year, Azerbaijan’s national oil company SOCAR began supplying natural gas to SPP, Slovakia’s largest state-owned energy operator. This initiative follows a short-term pilot contract signed by SPP with Azerbaijan for the purchase of natural gas in anticipation of a potential shutdown of Russian supplies via Ukraine. SPP has committed to supplying its customers mainly through pipelines from Germany and Hungary, although transit costs are higher.
Opportunity for the United States in Europe
The situation in Europe represents a significant opportunity for the United States. Norway and the United States have overtaken Russia as Europe’s main gas suppliers. In 2022, Norway supplied 87.8 billion cubic meters of gas to Europe, or 30.3 percent of total imports, while the United States supplied 56.2 billion cubic meters, or 19. 4 percent. The United States holds a dominant position as the largest supplier of liquefied natural gas (LNG) to Europe. In 2021, the United States accounted for nearly half of Europe’s total LNG imports, a trend that continued in 2022 and 2023. The United States supplied 27 percent (2.4 billion feet cubic feet per day) of total European LNG imports in 2021, 44 percent (6.5 billion cubic feet per day) in 2022 and 48 percent (7.1 billion cubic feet per day) in 2023.
Europe’s capacity to import and regasify LNG
Europe’s capacity to import and regasify LNG is also growing. By 2024, Europe’s LNG import capacity is expected to reach 29.3 billion cubic feet per day, a 33 percent increase over 2021 levels. Germany is the leader of this expansion, with developers adding 1.8 Bcf/d in 2023 and an additional 1.6 Bcf/d planned for 2024.
If you want access to all articles, subscribe here!
Belgium
