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Free AccessEU Industrial Gas Demand Expecting Moderate Rebound in 2024
European industrial gas demand is expecting a moderate rebound in 2024 rising by about 5.5bcm after the start of a recovery in the second half of 2023 according to Wood Mackenzie last week.
- Industrial demand was up 12% year-on-year in January and around 6% in February.
- The forecast for higher demand this year is driven by increased economic activity and a rebound in goods sales in the second half of the year.
- Gas consumption in refineries and ammonia production is expected to rise due to low gas prices.
- Households and services should also consume more gas in 2024, assuming normal weather.
- Gas for power generation is expected to reduce by 8bcm this year with the growth in wind and solar capacity and recovery of nuclear generation to more than offset upside due to the phase-out of coal-powered electricity generation.
- A cold January and low wind generation drove gas use in the power sector 15% higher year-on-year, but demand fell 19% year-on year in February.
Source: Wood Mackenzie
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MNI is the leading provider
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