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European Industrial Gas Demand Recovery Remains Sluggish

NATURAL GAS

European industrial natural gas demand remains slow to recover according to S&P Commodity Insights.

  • Industrial gas demand in Northwest Europe dropped by 16% y/y in June and was 25% below the 2017-21 average.
  • Gas demand in key economies — Germany, Italy, the Netherlands, France, Spain and the UK - was 9.3% lower y/y in June.
  • Industrial usage of the fuel edged higher in the Netherlands against May — with chemical and refinery sectors adding 8% and 39%, respectively, but remained pre-Covid levels.
  • Refinery production returning from maintenance in Q2 and increasing competitiveness of European ammonia production as well as governmental support packages are expected to boost demand during the second half of this year.

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