European demand for liquefied natural gas (LNG) is anticipated to surge in 2025, reflecting the ongoing importance of LNG in the continent's energy framework. A projected 13% increase in LNG imports in 2025 follows a decline in 2024 after the highs post-Russian invasion of Ukraine. As the EU rapidly depletes gas storage facilities, analysts assert Europe's reliance on LNG has heightened due to reduced Russian gas supplies. Despite fears of shortages and price hikes, experts conclude that Europe is likely to secure sufficient LNG, albeit at potentially higher prices to match Asian demand.
Europe is more import dependent on LNG now than before, because of the drop in Russian gas imports. That means Europe is more connected to fundamentals in a global market than ever before.
Despite some fears around a potential scramble for gas and a risk of surging prices, the situation is overblown. Europe will get enough LNG in, but it might mean that European prices have to go higher to compete with Asia.
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