BAKU, Azerbaijan, October 10. Gas demand in OECD Europe is expected to decrease by 7 percent in 2023, Trend reports.
This is primarily due to 15-percent reduction in gas consumption in the power sector, driven by the rapid expansion of renewable energy sources and decreased electricity consumption, the International Energy Agency (IEA) says.
In OECD Europe, natural gas consumption saw a substantial year-on-year decline of over 9 percent (33 bcm) in the first three quarters of 2023. According to the agency's estimations, the majority of this reduction, accounting for over 60 percent, occurred in the first quarter when European gas consumption dropped by 12 percent (21 bcm) year-on-year.
This decline was primarily driven by reduced gas usage in residential and commercial sectors, the IEA says. The pace of demand reduction moderated in the second and third quarters of 2023, with a 7-percent decline (12 bcm) year-on-year. During this period, the decrease in gas consumption was solely attributable to reduced usage in the power sector, influenced by lower electricity consumption and increased renewable energy output.
Meanwhile, in the industrial sector, gas usage is expected to remain relatively stable compared to the previous year, benefiting from lower prices and a recovery in demand in the second half of 2023.
Looking ahead to 2024, European gas demand is forecasted to experience modest growth of 2 percent. the agency says. This growth will come as the anticipated decline in gas-to-power demand is balanced by increased gas utilization in the residential, commercial, and industrial sectors.