Thursday 22 February 2024

Europe’s gas consumption plummets

Europe’s gas consumption plummets

Europe's gas consumption hit a decade low in 2023, driven by increased efficiency measures and renewables deployment.

Since Russia's invasion of Ukraine, gas demand has dropped by 20% across the continent.

According to the latest data from IEEFA's European LNG Tracker, Germany, Italy and the UK have been leading the decline in gas demand, with the continent expecting a peak in LNG consumption by 2025.

Despite expectations of rising LNG imports to compensate for reduced Russian gas, Europe saw flat LNG demand in 2023.

However, new LNG infrastructure continues to be constructed, with eight import terminals becoming operational since February 2022 and an additional 13 projects slated for completion by 2030.

This could potentially lead to Europe having three times more LNG terminal capacity than needed by the end of the decade.

Ana Maria Jaller-Makarewicz, Lead Energy Analyst, Europe, at IEEFA, said: "Two years on from Russia’s invasion of Ukraine, Europe’s energy system is more diversified and resilient.

"The crisis has been controlled to an extent, efficiency measures have been scaled up and renewables and heat pump installations have accelerated. This has set up the continent to continue reducing gas demand."

Written by

Sumit Bose

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