LNG was more important to Europe than pipeline gas last year

Last year, for the first time, more LNG was shipped to Europe than came to the continent through pipelines. This emerges from data from the UK Energy Institute.

Since the beginning of the Russian invasion of Ukraine, Europe has been trying to become less dependent on Russia for its gas needs. In addition, Russia has used gas supplies to Europe to balance European sanctions and cut supply several times. The additional LNG gas came mainly from the United States, but Qatar provided more as well. Europe also began to look for other countries such as Algeria, Mozambique and Angola to meet its demand for gas.

The shift is amazing because no more gas has been produced around the world than in previous years. However, Europe was willing to pay more than other countries, which led to a sharp rise in gas prices.

In total, about 151 billion cubic meters of gas entered pipelines last year. This is more than a third less than the 232 bcm from 2021. Meanwhile, LNG imports increased from 108 bcm in 2021 to 170 bcm last year.