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European Oil Markets
27JUL

Four LNG terminals at lowest utilisation since 2023

2 min read
10:27UTC

IEEFA identified four EU LNG terminals recording their lowest utilisation since 2023 in Q1 2026: Panigaglia (Italy), EemsEnergy (Netherlands), Fos Cavaou (France) and Sines (Portugal).

EconomicDeveloping
Key takeaway

LNG cargo concentration at fewer hubs leaves four terminals underutilised and deepens the locational supply imbalance across the EU.

IEEFA data for Q1 2026 found four LNG terminals at their lowest utilisation since 2023: Panigaglia near La Spezia, EemsEnergy at Eemshaven in the Netherlands, Fos Cavaou in southern France, and the Sines terminal on Portugal's Atlantic coast. The finding sits alongside the Russian LNG quarterly record reported in the same dataset, which means overall import volumes rose while terminal throughput concentrated at fewer facilities.

The concentration pattern has a geographic logic. Post-Hormuz, LNG cargoes are overwhelmingly Atlantic-sourced (US at 63% of EU imports in Q1). Atlantic cargoes route preferentially to large-capacity terminals on the Atlantic and North Sea coasts: Zeebrugge, Gate Rotterdam, Montoir. Smaller or Mediterranean-facing terminals that historically received Qatari or spot Middle Eastern cargoes are losing throughput because those cargoes no longer exist in sufficient volume. The terminals recording low utilisation are precisely the ones most exposed to the loss of eastern and southern supply routes .

For infrastructure operators, low utilisation feeds directly into the revenue assumptions underpinning terminal investment cases. For gas consumers served by those terminals, lower throughput means less local supply, which reinforces the hub premium that ACER identified in Central European markets. The EU built LNG import capacity to diversify away from pipeline dependency; in practice, the new dependency concentrates at a handful of hubs.

Deep Analysis

In plain English

Europe has built many specialised ports and facilities to receive tankers carrying supercooled liquid natural gas, which is then warmed up and pumped into pipelines. Four of these facilities in Italy, the Netherlands, France, and Portugal are currently running at their lowest levels since 2023, even as Russia has been shipping more gas to Europe than ever. This suggests that the gas arrivals are going to a small number of favoured ports rather than being spread across all available infrastructure, which creates a vulnerability if those preferred ports become unavailable.

What could happen next?
  • Consequence

    The four underutilised terminals represent latent regasification capacity that becomes immediately available for replacement LNG procurement after the 1 January 2027 Russian cargo ban, but commercial reactivation costs (maintenance, reactivation fees) have not been publicly modelled.

First Reported In

Update #13 · Storage on track by 45 GWh; one outage away

Euronews· 29 May 2026
Read original
Causes and effects
This Event
Four LNG terminals at lowest utilisation since 2023
Low utilisation alongside a Russian LNG quarterly record implies cargoes are concentrating at fewer hubs rather than distributing across the terminal estate, deepening the locational basis problem for Central European consumers.
Different Perspectives
Asian buyers (India, Japan, China, South Korea)
Asian buyers (India, Japan, China, South Korea)
Asian refiners are absorbing 62% of Yanbu's 3.75m b/d flow, the bulk of Saudi Arabia's rerouted crude now clearing east rather than into the Atlantic basin. That destination split leaves Asian buyers more exposed to any single Yanbu-specific disruption than under the kingdom's normal multi-terminal export pattern.
Russia / Lukoil
Russia / Lukoil
Moscow loses the roughly $14-a-barrel legal headroom the frozen price-cap formula would otherwise have released toward $58, even as Urals trades below Russia's own $59 budget floor. The shadow-fleet insurance workaround the freeze leaves untouched remains the actual route sanctioned crude clears above $44 in practice.
European Union / Council
European Union / Council
Brussels adopted its 21st sanctions package on 23 July, letting boarding states confiscate and sell shadow-fleet cargo outright and freezing the G7 price cap's automatic adjustment to mid-2027, converting indefinite tanker storage into recoverable value for enforcers.
Freight and tanker desks
Freight and tanker desks
The Baltic Exchange's TD3C VLCC benchmark, most desks' reference for Gulf freight, prices a single-vessel voyage while Saudi shippers now pay for two Suezmax charters at roughly double the transit time. That gap leaves any book hedged purely on TD3C carrying unrecognised Suezmax basis risk on the bulk of Saudi rerouted volume.
Mediterranean refiners (Sines, Trieste, Augusta)
Mediterranean refiners (Sines, Trieste, Augusta)
Refiners already facing aframax rates up 198% month-on-month now watch Ain Sokhna draw 23% of Yanbu's rerouted crude through the same SUMED corridor they lean on for product backfill. Fujairah and ARA stocks near record lows leave little room to absorb a thinner Suez product flow.
Saudi Arabia
Saudi Arabia
Riyadh has rerouted its entire western-coast crude book through Yanbu and Suez since the 23 July Bab el-Mandeb embargo, absorbing a roughly $2m-per-voyage Suezmax premium on every diverted cargo. The kingdom's fiscal breakeven near $108 a barrel makes that freight cost, not the blockade itself, the more durable drag on export economics.