LIQUEFIED GAS, SOLID PROBLEM

The report contends that Europe's rapid expansion of LNG import capacity in response to the Russian gas crisis is disproportionate and environmentally damaging. It argues that new terminals will not address short-term energy needs due to long construction timelines, will create carbon lock-in, and increase methane emissions, particularly from US shale gas. The author asserts that existing capacity is sufficient to meet demand under net-zero scenarios and that funds should instead be diverted to renewable energy and energy efficiency to avoid worsening energy poverty and impacting the Global South.

• Europe is seeing a surge in LNG infrastructure, with at least 16 new projects proposed and six dormant projects reactivated since February 2022. If all current, planned, and revived projects are completed, Europe's LNG import capacity could nearly double, increasing from 235 bcm/year to 449 bcm/year.
• New LNG terminals are incompatible with the 1.5°C warming limit and the EU's goal of climate neutrality by 2050. The report calculates that if all European LNG projects are operated at full capacity, combustion of the gas would result in 4.34 gigatons of CO2 emissions by 2029.
• The reliance on US shale gas significantly increases the climate impact of European LNG imports. Methane emissions from shale gas production are at least 30% higher, and potentially more than twice as high, as those from conventional fossil gas.
• New LNG infrastructure will not solve the immediate energy crisis because of long lead times. Onshore terminals in Europe have taken more than five years on average from proposal to operation, and Floating Storage and Regasification Units (FSRUs) typically have delivery times between 2.5 and 3 years.
• Additional LNG import capacity is redundant as current capacities are sufficient to exceed demand under 1.5°C scenarios from the IEA, ENTSOG, and the European Commission. In 2021, European terminals were underutilized, with a usage rate of 45%.
• The rush for LNG in Europe risks increasing energy poverty for European households and causing energy shortages in the Global South. Countries such as Pakistan, Thailand, and Bangladesh are being outbid by European buyers, leading to canceled shipments and power outages.
• New LNG projects face a high risk of becoming stranded assets. The IEA's Net Zero 2050 scenario suggests global LNG trade will peak in the mid-2020s and fall by 2030, meaning Europe's projected capacity of nearly 450 bcm/year by 2029 would far exceed global requirements for net zero.

APA

Maraval, C. (2022). LIQUEFIED GAS, SOLID PROBLEM. Reclaim Finance. https://reclaimfinance.org/site/wp-content/uploads/2022/09/Report-Liquefied-Gas-Solid-Problem.pdf

Chicago

Maraval, Claire. LIQUEFIED GAS, SOLID PROBLEM. Reclaim Finance, 2022. https://reclaimfinance.org/site/wp-content/uploads/2022/09/Report-Liquefied-Gas-Solid-Problem.pdf.

Wikipedia

{{cite report |last1=Maraval |first1=Claire |title=LIQUEFIED GAS, SOLID PROBLEM |publisher=Reclaim Finance |date=September 2022 |url=https://reclaimfinance.org/site/wp-content/uploads/2022/09/Report-Liquefied-Gas-Solid-Problem.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{maraval2022liquefied, author = {Maraval, Claire}, title = {{LIQUEFIED GAS, SOLID PROBLEM}}, institution = {Reclaim Finance}, year = {2022}, month = sep, url = {https://reclaimfinance.org/site/wp-content/uploads/2022/09/Report-Liquefied-Gas-Solid-Problem.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }