Europe & Russia: Consumption
Unseasonably cold weather has boosted gas demand in Europe. However, gas consumption is expected to decline over the coming months in some of the region’s leading markets.
Cold weather hit much of the UK in April and May. The corresponding increase in heating-related demand supported consumption and was enough to boost overall gas demand above seasonal norms in April and even into May. However, demand from the power sector has declined in recent weeks, which could weigh on the UK’s overall gas consumption over the coming months. Gas-fired generation is expected to be competitive against coal during the summer (April-September), but wind and solar output could be strong enough to reduce the need for gas-fired power. This, combined with the weak need for gas to replenish stocks because of the closure of the Rough storage facility, is expected to force down the UK’s gas consumption during the summer.