France faces potential overinvestment in liquefied natural gas (LNG) infrastructure as the utilisation rates of existing terminals drop and gas consumption declines, according to a recent study by the Institute for Energy Economics and Financial Analysis (IEEFA).
The research reveals that the average utilisation rate of France’s operational LNG import terminals stood at 60% during the period between January and August 2023. This figure represents a decline from the previous year’s rate of 74%, casting doubts on the necessity of the newly arrived floating storage regasification unit (FSRU) at the port of Le Havre.
The Le Havre FSRU, boasting a regasification capacity of 5 billion cubic metres, is slated to be operational for the next five years.
Despite a 9% decrease in gas usage in 2022, attributed to higher prices and reduced consumer consumption, France is contemplating an expansion of capacity for operational LNG terminals and international gas pipelines.
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