The European Union’s (EU) LNG demand is likely to peak this year and buyers on the continent are likely to be over-contracted by 2030 as efforts to displace Russian natural gas over the last two years have been successful, according to the bloc’s energy watchdog. 

Since 2022, when Russia invaded Ukraine and cut off gas exports to most of Europe, the EU has added over 50 billion cubic meters (1.8 Tcf) of liquefied natural gas regasification capacity to import more of the super-chilled fuel. In a report released last week, the European Union Agency for the Cooperation of Energy Regulators (ACER) said the new infrastructure has eased supply constraints and helped to narrow the price gap between European gas hubs and LNG spot prices. 

About 75% of the new LNG import capacity...