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Ten-Year Network Development Plan 2017 Main Report |
127
0
20
40
60
100
80
10
30
50
90
70
%
2006
2007
2008
2009
2011
2010
2012
2013
2014
2015
Algeria
Libya
Egypt
Russia
Peru
Malaysia
Australia
Yemen
Nigeria
Equ. Guinea
USA
Qatar
Oman
Abu Dhabi
Trinidad & Tobago
Norway
Figure 3.39:
Contribution of each LNG origin to the total EU LNG imports
LNG as a multi-source
LNG is traded in a global market which has
been constantly growing during the last dec-
ades. By giving access to a large variety of
sources and routes, LNG makes gas reserves
around the world accessible to the EU market.
An LNG terminal is therefore a gateway to
many different producers and sources of gas
located in different parts of the world. LNG
implies a diversification by itself, diversifying
supply sources on both a long term and a short
term basis, which is a strong insurance against
supply disruptions of a given country and/or
producer as long as the country is prepared to
pay the price. Furthermore, LNG not only pro-
vides diversification of supply but also adds to
competition and effective market functioning.
LNG volumes can enter the EU market and
compete with and/or complement traditional
pipeline gas supplies, thus putting additional
pressure on gas suppliers.
In 2015, the EU imported LNG from more than
9 different origins around the world. The num-
ber of different origins supplying LNG to the EU
has remained between 7 and 12 during the
last decade. Nothing indicates that the number
of origins is going to decrease in the future. On
the contrary, with new trends emerging on the
global LNG market (e. g. increasing LNG
volumes on the supply side, decreasing EU
domestic production, etc.) an increased num-
ber of LNG liquefaction plants located in an in-
creased number of countries will be entering
the market and a higher number of LNG
cargoes are expected to arrive in Europe in the
upcoming years. This is contributing further to
increasing diversification, supply competition
and security of supply for the benefit of the EU
consumer.
In case of a supply disruption within the EU,
increased LNG deliveries in BE, ES, FR, GR, IT,
LT, NL, PL, PT and UK will help to meet
Europe’s needs and free up pipe-gas for other
parts of the EU.
LNG has already demonstrated it is an effective
tool in addressing emergencies and mitigating
supply shortfall/demand spikes. For instance,
following the Fukushima tragedy, by accepting
higher LNG prices, Japan was able to attract
additional LNG supplies from all over the world
and increased its LNG consumption for power
generation from 50bcma to more than 70bcma
in 2012. Other examples where LNG played a
key role in mitigating supply emergencies are:
Chile post curtailment of imports from Argenti-
na (mid 2007), Brazil droughts impacting
hydro-based power production (2014), Israel
& Jordan post curtailment of imports from
Egypt (2012). This demonstrates that LNG
offers a fast track solution from the perspective
of both the molecule as well as the infrastruc-
ture.
Source: GLE
Year
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
EU LNG Imports (bcm)
49
45
48
60
75
76
55
41
41
45
Number of origins
8
8
9
12
12
11
7
9
8
9