(Oil Worth) – Europe is predicted to import a record-high quantity of liquefied pure fuel this yr as stronger demand for replenishing storage websites, the phase-out of Russian provide, and continued pipeline exports to Ukraine will drive elevated demand, the Worldwide Power Company (IEA) stated on Friday.
After setting a file in 2025, European LNG imports are poised to succeed in a brand new all-time excessive of over 185 billion cubic metres (bcm) in 2026, the company stated in its Fuel Market Report Q1 2026.
Europe’s LNG imports hit an all-time excessive of over 175 bcm in 2025, surging by 30% (or 40 bcm) from 2024, the report discovered. Key components within the file imports have been stronger home demand, decrease piped fuel imports, and better storage injections in April-October.
European LNG netback costs remained principally at a premium in contrast with key Asian markets, which incentivized versatile LNG cargoes to circulate in direction of Europe, the IEA stated.
Because of the leap in LNG imports, the share of LNG in Europe’s main pure fuel provide surged from 30% in 2024 to 38% in 2025.
A lot of the incremental LNG provide to Europe got here from the US, which boosted deliveries to Europe by 60% yr over yr.
Within the quarterly report, the IEA famous {that a} surge in world LNG provide is predicted to play a key function in rebalancing world fuel markets in 2026, resulting in stronger demand development after a slowdown final yr.
The leap in provide, principally from North America, is predicted to scale back market pressures at a time of heightened geopolitical uncertainty, the IEA stated.
International provide development is ready to speed up in 2026 to greater than 7%, its quickest tempo since 2019, the company stated, echoing expectations from different forecasters.
“The unfolding LNG wave is ready to have a central function in shaping world fuel markets within the coming years, seemingly placing downward strain on costs and bettering liquidity as regional fuel markets change into more and more interconnected,” stated Keisuke Sadamori, IEA Director of Power Markets and Safety.
By Tsvetana Paraskova for Oilprice.com
