BAKU, Azerbaijan, October 5. Natural gas consumption in OECD Europe declined by 3% during the first three quarters of 2024, driven largely by a significant drop in gas use for power generation, Trend reports.
This decline was most pronounced in the first half of the year, while demand stabilized in the third quarter, according to recent data from the International Energy Agency (IEA).
The reduction in gas-to-power demand, which fell by 16%, was fueled by a surge in renewable energy generation, including wind, solar, and hydroelectric power. Hydro availability played a particularly strong role in Southern European countries like Italy and Spain, where it displaced a large share of gas-fired electricity production. Wind and solar power generation also expanded by 15%, while nuclear output increased by 4%, further reducing the reliance on gas.
Meanwhile, natural gas demand in the residential and commercial sectors remained subdued, with an 8% decline in heating requirements during a mild winter in early 2024. Gas demand in these sectors showed signs of recovery in the third quarter, possibly driven by commercial activity.
In contrast, the industrial sector’s gas consumption saw a notable recovery, increasing by 9% year-on-year. This growth was supported by lower gas prices, although industrial demand remains 10% below its 2021 levels.
For the full year of 2024, OECD Europe’s natural gas demand is forecast to decline by 2%, as lower gas use in power generation offsets slight gains in the residential, commercial, and industrial sectors. Looking ahead to 2025, gas consumption is projected to increase by 1%, driven by stronger demand in buildings and industry, even as gas-fired power generation continues to decline due to the rapid expansion of renewables.