Liquefied natural gas (LNG) imports are becoming an increasingly important indicator for Southeast European electricity markets, extending their influence well beyond the natural gas sector. During Week 26, LNG inflows reached 713.09 GWh in Greece, 4,222.43 GWh in Italy, and 641.61 GWh in Croatia. Italy recorded a 5.45% weekly increase in LNG imports, Croatia posted a 0.9% gain, while Greece experienced a 1.3% decline. These developments highlight the growing role of gas supply conditions in determining electricity market flexibility across the region.
The relationship between LNG and electricity markets is becoming increasingly direct. As high temperatures push electricity demand higher and renewable generation or hydropower cannot fully meet the additional load, gas-fired power plants become essential for balancing the system. This trend was clearly visible in Week 26, when gas-fired electricity generation across Southeast Europe increased by 25.5%. Consequently, LNG terminals are now critical not only for supplying gas consumers but also for supporting electricity systems during periods of peak demand.
Italy remains the region’s largest LNG importer, with weekly inflows exceeding 4.2 TWh, providing the country with substantial gas supply flexibility. Despite this strong supply position, Italy’s wholesale electricity price still averaged €144.67/MWh during the week. The data illustrates that abundant LNG availability does not automatically translate into lower electricity prices. As gas-fired generation expanded by 47.5%, electricity prices continued to reflect fuel costs, carbon prices, power plant availability and tight supply conditions during peak demand hours.
Greece’s LNG infrastructure also plays a significant regional role, supporting both domestic electricity generation and gas supply across the wider Balkan market. Although LNG imports declined slightly compared with the previous week, Greece maintained relatively competitive electricity prices compared with several neighboring markets. Stronger wind and hydropower production helped moderate prices, while reliable LNG supplies continued to strengthen the country’s ability to balance fluctuations in electricity demand.
Croatia’s LNG facilities have become increasingly important for both Central and Southeast Europe. LNG inflows increased modestly to 641.61 GWh, even as the country experienced elevated electricity prices and greater reliance on thermal generation. While LNG infrastructure enhances regional supply security, it cannot fully prevent price spikes when renewable generation weakens and electricity demand rises sharply.
For policymakers, LNG infrastructure has evolved from a security-of-supply asset into a key factor influencing electricity market pricing. LNG import terminals, gas transmission networks, storage facilities and flexible gas-fired power plants all contribute to the ability of electricity systems to manage periods of extreme demand without triggering severe price volatility. This role becomes even more important as countries continue expanding renewable energy while maintaining reliable electricity supply.
Industrial electricity consumers should increasingly monitor LNG market developments alongside wholesale electricity prices, hydrological conditions and renewable generation forecasts. Stable LNG imports reduce the likelihood of physical gas shortages, but they do not eliminate price volatility, particularly when global LNG competition intensifies or European gas storage remains below seasonal averages. In markets where gas-fired generation frequently determines marginal electricity prices, LNG availability has become an important consideration in electricity procurement and risk management strategies.
Week 26 demonstrated that LNG infrastructure and electricity market dynamics are now closely interconnected across Southeast Europe, reinforcing the growing importance of gas supply conditions in shaping regional power prices and system resilience.
Elevated by Virtu.Energy