BAKU, Azerbaijan, April 21. European natural gas demand is forecast to decline by close to 6 percent in 2022, Trend reports with reference to the International Energy Agency (IEA).
This represents a further downward revision compared to the forecast in Q1 2022, amid the expectation of higher gas prices following the outbreak of war in Ukraine.
The rapid expansion of renewables is set to weigh on thermal power generation, while the continuing high gas price environment is set to put gas-fired power plants at a disadvantage vis-à-vis coal-fired plants, according to the IEA report.
Reportedly, gas-to-power demand is expected to decline by close to 5 percent. High gas prices are also set to weigh on industrial gas demand, which is expected to fall close to its 2020 levels. Assuming average weather conditions during the rest of the year, space heating requirements in the residential and commercial sectors are expected to be lower than in 2021, when Europe faced a particularly long heating season extending into April.
European gas consumption fell by close to 4 percent y-o-y during the 2021/22 heating season (the period between 1 October and 31 March). Milder temperatures weighed on demand met by distribution networks, while record high gas prices depressed gas use in the power and industrial sectors.
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