BAKU, Azerbaijan, Jan.31
By Leman Zeynalova – Trend:
Europe’s gas demand is expected to decline by over 4 percent in 2022, Trend reports with reference to the International Energy Agency (IEA).
“This will be partly driven by lower gas burn in the power sector, declining by 6 percent compared with 2021. As noted in the latest IEA Electricity Market Report, gas-fired power generation is expected to decline amid the strong expansion of renewables, while high gas prices continue to weigh on its competitiveness vis-à-vis coal-fired generation. Distribution network-related demand is foreseen declining on lower space heating requirements, assuming a return to average weather conditions in Q1 and Q2 after an unseasonably cold spring in 2021. Gas demand in industry is expected to continue to recover, reaching close to its pre-2020 levels,” the IEA said in its report.
The agency notes that natural gas demand in industry fell by an estimated 5 percent y-o-y in Q4. Record-high gas prices led to production curtailments at several major industrial plants.
“Gas-intensive industries, including ammonia and fertilizer production, have been the most affected. Industrial sector gas demand fell by over 10 percent y-o-y in Belgium, by 10 percent in France and by 1 percent in Spain during Q4. Gas demand for power production rose by close to 5 percent y-o-y in Q4, albeit displaying particular regional differences. In northwest Europe, record-high gas prices supported gas-to-coal switching, coal-fired power plants increasing their output by 20 percent y-o-y. Gas-fired generation fell by over 7 percent,” the report says.
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