Floating LNG terminals in Europe remain unused due to costs

Europe's floating LNG terminals have not been used much lately, despite high demand for natural gas. This is mainly because operating costs for these floating facilities are too high compared to onshore terminals. In France, the Le Havre floating terminal was set up by TotalEnergies in 2023 as a response to the energy crisis following the invasion of Ukraine. The terminal was expected to handle a significant amount of LNG, but it only processed 2% of France’s LNG imports in 2024. This is surprising, given that it could potentially supply 10% of the country's gas needs. TotalEnergies itself has not used the Le Havre terminal often. The last LNG shipment arrived in June 2024. The high costs linked to operating and regasifying at these floating units are the main reason for their low usage. Germany faces similar issues. Since 2022, the country has added several floating LNG terminals to reduce its reliance on Russian gas. However, these floating facilities have also seen low usage. Deutsche ReGas, a firm involved with these terminals, has reported financial losses due to the high costs of operating their floating unit. Overall, both France and Germany’s floating LNG terminals are underperforming because of their high operational costs compared to more traditional onshore facilities.