Europe & Russia: Consumption
Demand in Italy and Spain has been driven up during the peak of the summer as severe heat gripped southern Europe; however, elsewhere in Europe demand remains weak.
Italian gas demand increased by 9% on an annual basis in July. Rising offtake from the industrial and power sectors is helping to push up total demand in the country. Industrial demand increased by 16% on an annual basis in July, while power sector gas use rose by 13%. The need for gas-fired generation increased as parts of the country faced extreme heat. Weak hydro output and strong electricity demand forced up gas use in the power sector. Further growth in gas-to-power demand was seen at the start of this month. Total gas demand rose by 21% on an annual basis over the first half of August, while offtake from the power sector shot up by 35%. Higher gas use by the power sector is expected to continue through the remainder of the month as above-average temperatures are forecast to persist in parts of the country.