Natural gas consumption of Europe’s largest gas consuming economies is expected to decline, amid lower industrial demand, higher prices and support for alternative generation sources, according to S&P Global Commodity Insights.

• Weather-adjusted natural-gas demand is expected to be reduced by just over one-tenth this year to about 430bcm, primarily as industries, notably in Germany, Italy, Belgium, and Netherlands, respond to price signals.
• EU gas demand in August-September was 14% below the 2017-2021 average.
• Gas demand should dip slightly next year as stronger nuclear and hydro power reduces the need for gas to generate electricity, and residential and commercial customers adjust power use to higher prices, even with energy affordability-protection policies.
• Natural gas accounted for 24.3% of Europe's current primary energy demand in 2021.
• Some economies such as Germany have been pivoting from natural gas for electricity generation to other generation sources. German gas consumption for power generation so far this year has decreased to 8.9%, compared with 10.5% for 2021, data from Fraunhofer ISE show.

Source: S&P Global