Europe Gas Crisis 2022

Background

Location of LNG projects across Europe which would involve over 150 billion cubic meters per year of new gas import capacity at a cost of at least €6 billion, as of May 2022

Following Russia's invasion of Ukraine in February 2022, and in response to policy announcements and potential supply disruptions, a rapid series of announcements and proposals from EU member states and the gas industry have emerged across Europe. These could result in substantial and excessive new boosts to LNG import terminal capacity (including expansions of operating terminals) and gas import pipeline capacity, and lead to fossil fuel lock-in.

This tracker is recording the project and other developments connected to the new surge in European gas infrastructure on an ongoing basis. A zoomable version of the project map is available on GEM's Europe Gas Tracker.

Contacts for more information

• For general inquiries or project-related information, contact: Greig Aitken, Global Energy Monitor.
• For developments in the Baltic region, contact: Johanna Kuld, Estonian Green Movement.
• For developments in France, contact: Lorette Philippot, Friends of the Earth France.
• For developments in Germany, contact: Sascha Boden, Deutsche Umwelthilfe e.V. (Environmental Action Germany).
• For developments in Italy, contact: Elena Gerebizza, ReCommon.

LNG project announcements, proposals and developments

bcm/y: billion cubic meters per year; FRU: floating regasification unit; FSRU: floating storage and regasification unit; FSU: floating storage unit; Unknown: some project information is incomplete and the subject of unconfirmed speculation

Name *denotes projects newly proposed or revived since February 2022	Country	Type	Promoter	Capacity (bcm/y)	Estimated cost (million €)	Status	Government backing	Start date
Krk LNG Terminal*	Croatia	FSRU	HEP, Plinacro	0.3	0	Operating	Yes: for capacity expansion of the terminal	Apr 2022
Paldiski LNG Terminal	Estonia	Onshore	Alexela	2.5	400	Proposed	Yes: slow project progress in recent years, now looking to accelerate a decision	Unknown
Paldiski FSRU*	Estonia	FSRU	Elering, Gasgrid Finland	5	500	Construction	Yes: has approved the project to move forward; FSRU to be shared between Estonia and Finland	Nov 2022
Le Havre FSRU*	France	FSRU	TotalEnergies	4.2		Proposed	Yes	Sep 2023
Brunsbüttel LNG Terminal	Germany	Onshore	German LNG Terminal (KfW, Gasunie and RWE)	8.0	1000	Proposed	Yes: fast-tracking project, state lender KfW has 50% shareholding	2025/2026
Brunsbüttel FSRU*	Germany	FSRU	Gasunie	5.0		Proposed	Yes: the state of Schleswig-Holstein is promoting the project	2023
Rostock LNG Terminal*	Germany	FSRU				Cancelled in 2021, alternative project under discussion	Unknown	Unknown
Stade LNG Terminal	Germany	Onshore	Hanseatic Energy Hub (Fluxys, Buss Group, Partners Group, Dow Chemical)	13.3	1000	Proposed	Yes: Stade city council has granted "early municipal approval" for project	2026
Stade FSRU*	Germany	FSRU	Hanseatic Energy Hub	5.0		Proposed		2023
Wilhelmshaven FSRU Terminal*	Germany	FSRU	Uniper	7.5	450	Construction	Yes: fast-tracking project	2022
Wilhelmshaven NWO FSRU Terminal*	Germany	FSRU	Nord-West-Ölleitung	9.0		Proposed	Yes, in Lower Saxony	2023
TES Wilhelmshaven LNG Terminal*	Germany	Onshore	Tree Energy Solutions	16.0		Proposed	No: promoter is accelerating plans; open season launched	2025
Lubmin FSRU*	Germany	FSRU	Deutsche Regas	5.2	100	Construction	No	2022
Lubmin 2 FSRU*	Germany	FSRU	RWE, Stena Power	5.0		Proposed	Yes: the FSRU has been leased by the German state	2023
Argo FSRU Terminal*	Greece	FSRU	Mediterranean Gas, ExxonMobil	4.6	226	Proposed	Yes	2023
Revithoussa LNG Terminal*	Greece	FSU	DESFA	0.8		Proposed	Yes: for stoarge and capacity expansion of the terminal	Jul 2022
Thessaloniki FSRU*	Greece	FSRU	Elpedison	7.3		Proposed	Unknown	2025
Thrace FSRU*	Greece	FSRU	Gastrade	5.5		Proposed	Unknown
Gioia Tauro LNG Terminal*	Italy	Onshore	LNG Medgas	12.0	1000	Shelved to Proposed	Yes	2026
Porto Empedocle LNG Terminal*	Italy	Onshore	Enel	8.2	1000	Shelved to Proposed	Yes	2026
Two new floating storage and regasification units (one to be bought, one to be leased)*	Italy	FSRU	Snam	10.0		Proposed	Yes	One in 2023, one in 2024
Skulte LNG Terminal	Latvia	FRU	JSC Skulte LNG Terminal	6.2	110	Proposed	Yes: has "conceptually agreed" to initiate construction of one LNG terminal in Latvia; decision expected in June	2024
Riga LNG Terminal*	Latvia	FRU	Latvenergo			Cancelled to Proposed	Yes: has "conceptually agreed" to initiate construction of one LNG terminal in Latvia; decision expected in June	2023-24
Eemshaven FSRU Terminal*	Netherlands	FSRU	Gasunie	8.0	300	Construction	Yes: €160 million state guarantee agreed; Gasunie plans to make the FSRU a "permanent terminal at a later stage"; Gasunie has leased a second FSRU for Eemshaven	Q3, 2022
Gate LNG Terminal*	Netherlands	Onshore	Gasunie, Vopak	8.0		Proposed	Yes: this would be additional expansion of the terminal	Unknown
El Musel LNG Terminal*	Spain	Onshore	Enagás	8.0		Idle to Proposed	Yes: wants to open idle terminal for receiving and re-exporting fuel to other European countries	2023
Non-EU
Teesside GasPort LNG Terminal*	UK	FSRU	Trafigura	6.0		Retired to Proposed	Unknown	Unknown
Total				152.4	5986

National developments

Belgium

National gas grid operator Fluxys said in May that it was looking at new pipeline investments in order to boost gas flows to Germany, with expansion of the Fluxys-owned Zeebrugge LNG Terminal due to result in increased LNG import volumes from 2024.

Bulgaria

Country breakdown of announced boosts to LNG import terminal capacity, including expansions of operating terminals

With the European Commission's backing, the government has announced that Bulgaria is to be a regional coordination centre for managing the overall use of gas and electricity infrastructure, as well as additional gas purchases, for the Balkans and Italy.

On May 11, the government said it had struck a deal with the US government to receive supplies of US LNG at prices lower than Gazprom's starting in June. Details on specific prices and quantities were not provided. Deputy Minister of Economy Georgi Danailov said: "It is quite possible that the price will be lower than that of Gazprom because the price of Gazprom is quite high ... The price of gas through pipelines, when delivered at a distance of more than 4,000 kilometres, certainly becomes high enough and may be higher than that of liquefied natural gas". Bulgaria is also negotiating with Azerbaijan to increase gas supplies, and is looking to agree LNG supply deals via terminals in Greece and Turkey.

Croatia

After the implementation of a small capacity increase at the Krk LNG Terminal in April, the Croatian government has said it is looking to tap additional EU funds to double Krk LNG's capacity to 6 bcm/y.

On May 11, Prime Minister Andrej Plenković said that Croatia could become an energy hub in the northern Adriatic for gas and oil, and that expansion of the Krk LNG Terminal was being actively considered to serve the needs of Croatia and other countries in central Europe. "Europe has to find a new, long-term sustainable alternative to Russia's energy products at an affordable price," said Plenković.

Czech Republic

At the end of April, the Czech and Polish governments agreed to embark on talks to revive the shelved Czech-Polish Interconnector Gas Pipeline (CPI), also known as "Stork II". The cross-border pipeline would allow the Czech Republic to take gas from the Świnoujście LNG Terminal in northern Poland.

On May 11, state fuel distributor Čepro said it was ready to build an LNG terminal in the Czech Republic to receive gas from the Baltic region to be transported through Poland by train. Discussions between the Czech and German governments have also been held on the joint use of LNG gas terminals that Germany wants to build.

In July 2022, it was announced that Czech energy company ČEZ and Shell Western LNG had jointly booked 7 bcm of capacity at Gasunie's planned Eemshaven FSRU Terminal in the Netherlands. ČEZ also secured pipeline capacity from Eemshaven to allow the Czech Republic to import up to 3 bcm of LNG per year, which amounts to roughly one-third of the country's gas consumption.

Estonia

In July 2022, in order to provide investment security for the private developers constructing the Paldiski FSRU, the Estonian government announced a €38 million boost to the share capital of the Estonian Stockpiling Agency, effectively providing the gas import project with a state guarantee. According to a spokesperson for the state-owned agency: "The private company is currently constructing the quay using own assets. We know that Finland is constructing its mooring infrastructure. In short, there is not enough business in the region to cater to two locations where LNG can be received as gas consumption is modest and there is considerable risk that one of the locations, the quay in Paldiski in this case, might not be economically feasible".

France

According to data released by the US Department of Energy in May 2022, France was the top destination in March for US LNG exports which totalled 363.8 billion cubic feet (bcf) of LNG overall, up by 15% compared to February, and representing a 13.4% rise year-on-year. In March, US LNG terminals sent 64.4 Bcf of LNG to France, followed by Spain (59.2 bcf), the UK (56.8 bcf), the Netherlands (24.9 bcf), and South Korea (19.3 bcf).

Germany

On March 25, Uniper and RWE leased 3 FSRUs on behalf of the German government. 

On April 15, Germany's Finance ministry made €2.94 billion available for the leasing of 3 or 4 FSRUs. On April 30, a new draft law, the "LNG Acceleration Act," jointly developed by the Ministry of Economic Affairs, Justice and the Environment, set out steps to implement both floating and onshore LNG terminals more quickly, including temporarily suspending the need for environmental impact assessments.

On May 5, Germany signed contracts to charter four FSRUs with an import capacity of 25-29 bcm/y in partnership with the utilities RWE and Uniper, with the first of these to be deployed at Uniper's Wilhelmshaven FSRU Terminal. Uniper chartered the Transgas Force FSRU and the Transgas Power FSRU managed by Greece-based Dynagas, each with a regasification capacity of up to 7.5 bcm/y and an LNG storage capacity of 174,000 m³. RWE chartered two FSRUs owned by Norwegian vessel operator Höegh LNG, which will jointly be able to import and regasify between 10 and 14 bcm/y of gas. The charter agreement with Höegh LNG is for ten years.

On May 9, it was reported that talks over a major LNG supply deal between Germany and Qatar were proving to be problematic due to differences over the length of contracts and other conditions which Qatar was attempting to impose.

On May 10, German environmental and consumer protection association Deutsche Umwelthilfe (DUH) said that the draft it had seen of the proposed LNG Acceleration Act identified locations for up to 11 new LNG terminals, both fixed and floating plants. The overall capacity of these, at least 70 bcm/y according to DUH calculations, would exceed the volume of gas which Russia had been supplying the country before the invasion of Ukraine. The German Federal Cabinet approved a preliminary version of the draft legislation which aims to cut the approval process for new LNG facilities to a tenth of the usual time. 

On May 12, as the first reading of the LNG Acceleration Act took place in the Bundenstag, DUH issued a legal assessment of the proposed legislation calling on German parliamentarians "to fundamentally revise this law". The legal assessment concluded that the new act's proposal to grant a general exemption from environmental assessments for a total of up to 18 projects (11 LNG terminals plus seven connecting pipelines) is not permissible under European law. The granting of operating licenses for up to 11 terminals in Germany by 2043 would be responsible for such significant CO2 emissions, said DUH, that it would be incompatible with the Paris Climate Protection Agreement, the German Federal Climate Protection Act and the climate judgment of the Federal Constitutional Court. While DUH accepted that two new floating LNG terminals could be justified in the exceptional circumstances of ending imports of Russian fossil fuels as quickly as possible while also securing energy supply in Germany, the proposed legislation should not apply to longer term onshore terminals which would not be ready in the short term due to long construction times, and including onshore terminals in the legislation would lock-in Germany's dependency on gas into the 2040s. Cornelia Ziehm, a lawyer and author of the legal assessment said, "Especially in a state of emergency, the executive must act with a sense of proportion, even in a state of emergency it is bound by the framework provided by the overriding law. The intended exclusion of civil society from effective participation in the proceedings and the exercise of effective legal protection is apt to give the impression that projects that violate overriding law are also to be enforced."

In June 2022, the German energy regulator Bundesnetzagentur said it planned to lower the feed-in tariffs at future LNG terminals by 40%, significantly improving the competitiveness of direct access into long-distance transmission pipelines.

Greece

On May 4, 2022, King Philippe and Queen Mathilde of Belgium made their first overseas state visit since the outbreak of the COVID-19 pandemic to the Greek islet where the Revithoussa LNG Terminal is sited. The Belgian energy infrastructure Fluxys is a shareholder in the Greek energy company DESFA which has announced plans to increase the storage and regasification capacity of the terminal in response to a potential cut-off of gas supply from Russia.

Italy

The multinational oil and gas company Eni agreed deals in mid-April to receive an additional 9 bcm/y from Algeria in 2023 and 2024, and to receive 3 bcm of LNG from Egypt in 2022.

Gas transport and storage company Snam's plan, sanctioned by the Italian government, to buy one FSRU and lease a second with the aim of having one of the floating terminals operational by the end of 2022, has been revised, according to its Chief Executive Officer. Stefano Venier said in a May 12 conference call that he expected the first FSRU to be operating in 2023 and the second in 2024. Venier also said that Snam had agreed with Spain's Enagas to conduct a feasibility study into the potential construction of an offshore gas pipeline to connect the two countries. The pipeline would have capacity of up to 30 bcm/y, and the study was expected to take three to four months.

Netherlands

On April 27, the Dutch government agreed to provide a €160 million state guarantee to support the chartering of an FSRU for the Eemshaven seaport in Groningen by Gasunie, the state-owned gas infrastructure and transportation company. Gasunie announced on May 10 the chartering of a second FSRU for deployment at Eemshaven, which increases the port's potential LNG import capacity to 8 bcm/year.

In the first half of 2022, LNG import volumes into the Gate LNG Terminal in the port of Rotterdam totalled 5.41 million tonnes, a 45.8% rise on the 3.71 million tonnes imported in January-June 2021.

Poland

The top national gas company PGNiG is boosting its fleet of chartered new build LNG carriers to eight vessels.

In May 2022, PGNiG signed a Heads of Agreement with US firm Sempra Energy for 3 mtpa of LNG (approximately 4 bcm/y after regasification) of LNG for 20 years starting from 2027 once a sale and purchase agreement is in place. The LNG is to be received at the Polish Baltic Sea Coast Terminal, a proposed FSRU project near Gdansk, and would come from two of Sempra's proposed export terminals in the Gulf of Mexico: the future expansion of the Cameron LNG Terminal (2 mtpa) and the Port Arthur LNG Terminal (1 mtpa).

In June 2022, Poland's energy and climate minister Anna Moskwa announced plans to double the size of the Polish Baltic Sea Coast Terminal to accommodate new natural gas demand from Ukraine, Slovakia and the Czech Republic in response to the Russia-Ukraine war. The expanded terminal project would include two vessels with a combined capacity of 12 bcm/y.

Portugal

In July 2022, a Portuguese government spokesman said that talks were advancing with European countries such as Germany and Poland about the trans-shipment of LNG from the Sines LNG Terminal. A Portuguese government feasibility study had found that "with the existing infrastructure and simultaneous operations, Sines could transfer to central and northern Europe up to 10 billion cubic meters (353 billion cu ft) of LNG annually" within six to 12 months. To do so, a 12 million (US$12.3 million) investment in new equipment was planned, but this would not immediately involve expanding the terminal's storage facilities. The option to expand the terminal could happen "if there is robust demand with long-term prospects," and was estimated to require three years for construction at a cost of 100 million euros.

Romania

Energy Minister Virgil Popescu has called for more investments in gas pipelines to reduce the country's dependency on Russian imports.

Slovenia

Intends to start receiving gas by October 2022 from the Krk LNG Terminal in Croatia which is expanding its capacity.

Spain

In July 2022, the Spanish government provided a key approval for the El Musel LNG Terminal in Gijon, which had been mothballed for nine years since its completion in 2013, to start up operations in early 2023. The facility would have LNG import capacity of 8 bcm/y which would then be trans-shipped to other European ports.

Opposition to new LNG plans

Germany

Activists outside the 'LNG & Future Fuels Forum' in Hamburg on April 8 for one of the first organized demonstrations in Germany against the new LNG import terminal proposals along the country’s North Sea coast.

Activists in Germany commenced protests in early April against the eight new and previously struggling LNG import terminal proposals which have gained backing from federal and regional authorities since February.

On May 4, 2022, as construction started on Uniper's Wilhelmshaven FSRU Terminal, German environmental and consumer protection association Deutsche Umwelthilfe (DUH) filed an objection to the Lower Saxony State Agency for Water Management, Coastal Defense and Nature Conservation calling for an immediate halt to the construction work. DUH's appeal requested due transparency and upholding of the rule of law. The group expressed concern that construction of the terminal will irreversibly destroy sensitive ecosystems and endanger the habitat of the endangered harbor porpoise in the Jade Estuary and in the Wadden Sea National Park. DUH further complained that the federal government's rush to advance plans for building several LNG terminals along the German coast, justified by the need to cut dependency on Russian gas because of the Ukraine war, had so far not been justified by any official figures and data to prove the necessity of implementing so many new projects.

Latvia

In spring 2022, local residents set up the Coastal Environmental Protection Society to prevent the development of the proposed offshore Skulte LNG Terminal and the associated Skulte LNG Terminal Pipeline next to the coastal village of Skulte. Juris Piziks, founder of the Coastal Environmental Protection Society, said, "There are several places in Latvia where it would be possible to build the terminal, more suitable places where there is an industrial zone and the environment is intended for it". "We want to see the comparison for all these potential terminal projects. We want to see a real technical-economic rationale," said Marta Timrota, spokeswoman for the association. A board member of the Skulte LNG Terminal company said that the project would be able to meet the requirements of an environmental impact assessment, but as of May 2022 that hadn't yet happened as there had been no location authorisation from the Latvian government.

Europe gas crisis analysis and views

• The EU plan to reduce Russian gas imports by two-thirds by the end of 2022: Practical realities and implications. The Oxford Institute for Energy Studies, March 2022 (28 page briefing)
• Given capacity constraints, Algeria is no quick fix for Europe's Russian gas concerns. Middle East Institute, Mar. 8, 2022
• EU can stop Russian gas imports by 2023. Bellona, E3G, Ember, RAP, Mar. 23, 2022 (16 page briefing)
• Europe Gas Tracker Report 2022. Global Energy Monitor, Apr. 5, 2022 (24 page report)
• Future of EU gas demand: Implications for the US LNG export sector. E3G, Apr. 8, 2022 (6 page briefing)
• Energy Supply Security in Germany Can Be Guaranteed even without Natural Gas from Russia. German Institute for Economic Research (DIW), Apr. 13, 2022 (9 page study)
• LNG terminals for Germany Part I: Brief history and state of play. Energy Transition, Apr. 19, 2022
• LNG terminals for Germany Part II: Climate impacts, possible suppliers and priorities in an energy and climate crisis. Energy Transition, Apr. 21, 2022
• Africa is imperfect solution to Europe's gas woes. Reuters Breakingviews, Apr. 28, 2022
• Decarbonization, a strategic imperative. European Investment Bank, Apr. 29, 2022
• Does phasing-out Russian gas require new gas infrastructure? Artelys, May 4, 2022 (17 page briefing)
• LNG: The Liquid Path to Climate Chaos. Food & Water Action Europe and Friends of the Earth Europe, May 4, 2022 (15 page report)
• The EU's €250 billion gas gamble. Ember and Global Witness, May 11, 2022 (online short report)
• Ukraine is no reason to invest in gas. Social Europe, May 17, 2022
• Analysis: Ukraine war rekindles Europe's demand for African oil and gas. Reuters, Jul. 22, 2022
• African gas supplies to Europe: between hopes and hard realities. The Oxford Institute for Energy Studies, July 2022 (6 page briefing)
• How German industry plans to cut its gas consumption. Deutsche Welle, Aug. 1, 2022