European nations’ frantic rush to build infrastructure to import methane gas in the wake of the Russian war in Ukraine could leave them with stranded assets as planned import capacity is on pace to far outstrip LNG demand in just seven years, a new Institute for Energy Economics and Financial Analysis report warns. According to the IEEFA analysis, expanding renewable energy generation means EU LNG demand could be as low as 150 billion cubic meters by 2030 — well under half of the more than 400 bcm of import capacity scheduled to be online by then.

The need to supply LNG to Europe has also been cited as justification for building new U.S. LNG export facilities, like Sempra’s Port Arthur LNG project in Jefferson County, Texas, which announced a positive final investment decision on Monday but will not even be partially operational until at least 2027. (Stranded EU assets: Politico EU; Port Arthur: E&E $, Politico Pro $, Houston Chronicle)