BAKU, Azerbaijan, July 23. Natural gas consumption in OECD Europe rose by an estimated 6.5% year-on-year in the first half of 2025, driven largely by colder winter temperatures and lower renewable power generation, the International Energy Agency (IEA) said in its latest outlook, Trend reports.
The strongest growth occurred in the first quarter, when natural gas demand jumped 9% compared to the same period in 2024. A rise in heating needs, reflected in a more than 10% increase in heating degree days, and weak wind and hydro power output forced utilities to lean more heavily on gas-fired power plants. In total, the power sector accounted for nearly 80% of the growth in gas demand during the first half of the year.
Gas use in the buildings sector also increased, rising 4.5% year-on-year in the first half, with most of the gains concentrated in Q1. However, consumption declined slightly in Q2 as spring temperatures moderated demand for space heating.
Gas-fired electricity generation rose sharply by around 20% (12 bcm) in the first six months of 2025. Although solar power output increased by 25% year-on-year, this was more than offset by an 8% decline in wind power and a 12% drop in hydropower generation, especially in Southern Europe.
Industry, meanwhile, saw a dip in natural gas use due to higher prices. Industrial gas demand declined by about 2% across the region in 1H2025, with sharper falls in the Netherlands (over 10%), France and Spain (6% each), and Belgium (3%). The drop was largely attributed to reduced gas use in the refining and fertilizer sectors.
Looking ahead, the IEA forecasts natural gas demand in OECD Europe will grow by nearly 3% for the full year. The power sector is expected to remain the main driver, though at a slower pace as renewables expand. Gas demand in the residential and commercial sectors is likely to pick up again in the fourth quarter, assuming average winter conditions. Industrial demand, however, is expected to continue declining due to persistent high gas prices.
For 2026, the IEA projects a 2% drop in European gas consumption as renewable energy continues to gain ground in the region’s electricity mix.
