BAKU, Azerbaijan, July 19. According to the International Energy Agency's (IEA) latest outlook, natural gas consumption in OECD Europe declined by 3.5 percent (or 9 bcm) year-on-year in the first half of 2024, Trend reports.
The reduction in gas demand was primarily driven by the power sector, where a significant expansion of renewables and improved nuclear availability reduced reliance on gas-fired power plants in both Q1 and Q2.
Mild winter weather also contributed to lower gas demand in the residential and commercial sectors during the first quarter. Conversely, gas use in the industrial sector showed signs of recovery, bolstered by a lower price environment.
The IEA's forecast suggests that natural gas demand in OECD Europe will remain close to last year's levels throughout 2024. Increased gas use in buildings and industry is expected to be nearly offset by a decrease in gas-fired power generation. Specifically, gas consumption in the power sector is projected to drop by more than 10 percent due to the rapid expansion of renewables and improved nuclear availability in France.
Meanwhile, gas demand in the residential and commercial sectors is anticipated to rise slightly compared to 2023, following a mild first quarter. Industrial gas use is forecasted to continue its recovery, although it remains highly dependent on price fluctuations and is still significantly below pre-crisis levels.