UK exports in natural gas have skyrocketed since the Ukraine invasion as it imports LNG for Europe
Europe’s decision to move away from Russian energy following Russia’s invasion of Ukraine has led to the UK becoming a key import hub for European LNG (liquified natural gas).
The sudden rocketing in demand for LNG following Russia’s invasion of Ukraine, and Europe’s decision to move away from Russian energy, has made the UK essential in supplying LNG to Europe. This is especially true following Russia’s now unreliable supply of gas through the Nord Stream 1 pipeline into Germany, which is again down to zero following the recently announced price cap on Russian oil by the G7.
Why is Europe importing LNG and electricty from the UK?
The UK has the second largest LNG regasification infrastructure in Europe after Spain. Since Europe’s sudden switch to LNG, the UK has been acting as an import hub for European energy by supplying huge amounts of gas (previously LNG) to Europe in the first quarter of 2022.
Unlike Spain, the UK is well connected to the European electricity grid and is closer to countries like Germany, Poland and the Netherlands who need it the most. Germany has zero LNG processing facilities (whoops) and is struggling to get 5 floating LNG terminals online by the end of the year to offset the loss of their Russian supply through Nord Stream 1.
Germany’s energy policy under Angela Merkel is coming back haunt it, and fast. That’s left the UK to import and regasify all the LNG Germany needs, leading to a huge increase in UK electricity and gas exports.
In the first quarter (Q1) of 2022 the UK’s natural gas exports were up 144% from Q1 in 2021, and electricity exports were up a massive 132%.