Gas Consumption in EU To Increase by 7% in 2015, Says EU Association

Worse weather conditions and national circumstances are likely to push gas demand across the European Union up by 7% in 2015 with respect to last year, Eurogas wrote on Friday.

‘Gas demand across the European Union is expected to increase by 7% in 2015 compared with 2014, according to the latest forecast from Eurogas. The first half of 2015 saw a significant increase of approximately 9% in demand, compared with the same period in 2014’ the association representing the European gas wholesale, retail, and distribution sector. 

Eurogas explained that the drop in hydropower production in Germany and Italy, along with an increase in gas demand for power generation in France and Austria, more than offset the competition from coal. 

‘The low price of coal has continued to have a considerable impact on gas demand’ reads the note. 

But not all the prospects are rosy.

‘Market fundamentals are still putting gas consumption under pressure. Most countries see a downward trend in power generation where a weak price signal for low-carbon electricity is depressing gas demand.’

On Thursday, Fatih Birol, Executive Director of the International Energy Agency tweeted that there is a real risk of a decline in upstream spending in 2016, which would imply a decrease for a second year in a row.

‘It would be the first time since 1980s’ he wrote on his tweet.