Europe Natural Gas and LNG Market Outlook – Supply and Demand Dynamics, Pipelines, Storage, Trade Activity and Energy Transition, 2024

Europe Natural Gas and LNG Market Report Overview

Europe’s natural gas supply peaked in 2022 and is now in decline due to a combination of policy shifts towards renewable energy and reduced dependency on fossil fuel imports. High industrial gas use and residential heating maintain favorable conditions for exploration and production, especially in countries with stringent emission control measures like Norway and large remaining competitive reserves. During 2024, gas has been produced at 22.2 bcfd rate. Many European countries will significantly increase their regasification capacity by 2025. This move is part of a strategic shift to diversify gas supplies and build resilience against geopolitical risks.

The Europe natural gas and LNG market research report offers detailed insights into the supply and demand scenario across the continent. The report enlists active and upcoming natural gas and LNG regasification projects.  The European natural gas and LNG market outlook also covers diversification strategies and the impact of the EU energy transition policies on the natural gas and LNG sector.

Europe Natural Gas Market Segmentation by Countries

The European natural gas-producing basins are largely located offshore in the North Sea, split between Norway, the United Kingdom, the Netherlands, Germany, and Denmark. As of 2024, European Gas supply meets less than half of demand. Norway produces most of the natural gas, followed by the United Kingdom, and the Netherlands. Romania, the Netherlands, and the UK are the only countries with a balanced share of supply and demand. The biggest net importers are Germany, Italy, France, and Spain, accumulating half of all European demand.

Europe Natural Gas Market Analysis by Countries, 2024 (%)
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Europe Natural Gas Market Segmentation by Sectors

The key sectors with the highest demand in the European natural gas market are power, residential, industrial, commercial, and petrochemicals among others. Gas-powered electricity generation is leading the slow net decline in overall demand in Europe, as renewable power generation overtakes thermal power generation for the first time in 2024. Additionally, gas demand for industrial use will continue in the coming years.

Europe Natural Gas Market Analysis by Sector, 2024 (%)
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Europe LNG Market Segmentation by Active Plants

Europe’s liquefaction capacity will be heavily centralized in Norway. As of 2024, the Norwegian plant Snohvit contributes over 70% of the continent’s total. Other Norwegian LNG plants such as Bergen, Risavika, and Stavanger have significant liquefaction capacity combined, being the most relevant.

Europe LNG Market Analysis by Active Plants, 2024 (%)
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Europe Natural Gas Market – Competitive Landscape

The key companies in the European natural gas market are:

• Equinor ASA
• Petoro AS
• TotalEnergies SE
• Shell plc
• Eni SpA

Norwegians Equinor and Petoro overwhelmingly dominate the European natural gas upstream market. The two companies will see the biggest production uptick in 2024, along with Eni, which notably comes from a lower position.

Europe Natural Gas Market Analysis by Companies, 2024
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Scope

• Analysis of European natural gas production by country and basin.
• Analysis of Europe’s natural gas demand by country and sector and its use and outlook for power generation.
• Review of Europe’s most important active and upcoming natural gas field projects.
• Details of the most important active and upcoming European gas pipeline systems and underground storage projects.
• Assessment of the European LNG liquefaction and regasification capacity. and upcoming regasification projects.
• Analysis of the LNG trade activity in the continent.
• Assessment of Europe’s phase-out of Russian gas.
• Overview of the EU’s Energy Transition Policies affecting the Natural Gas market.

Key Highlights

• The decreasing European gas production will be due to countries like Norway, which currently holds significant production, whose most important fields like Skarv, Ormen Lange, and Marting Linge are in declining.
• The demand itself will slightly decrease by 2028, due to natural gas being replaced by Solar and Wind energy for power generation.
• The continent’s LNG liquefaction capacity has remained steady since 2016. Due to the absence of new projects, it will remain at the same levels until the end of the decade.
• European LNG regasification capacity is growing rapidly to fulfill its demand. The main economies exporting gas to Europe, as of 2023, are the United States, Qatar, Russia, Algeria, Egypt, and Angola.

Reasons to Buy

Businesses need to have a deeper understanding of the market dynamics to gain a competitive edge in the coming decade. The report’s in-depth analysis and market insights will enable you to:

• Identify the main natural gas-producing countries and fields in the European continent.
• Discover the main natural gas demander countries and energy sectors.
• Access the current and upcoming status of European gas pipelines and underground storage.
• Explore the reasons behind the low European LNG liquefaction capacity.
• Learn about the current and upcoming LNG regasification projects, as well as the main exporters to the continent.