Europe & Russia: Consumption
Easing demand before the start of winter will weigh on European gas demand growth this year.
Gas consumption in leading markets has declined on an annual basis in recent weeks. Strong power sector offtake has driven weeks of robust demand in Italy, but gas consumption is now weakening and is anticipated to fall on an annual basis over the coming weeks. Italy’s gas demand rose by 12.5% year on year in August because of rising demand from the power sector. Gas demand from power generation rose by 17% year on year in August after a year-on-year gain of 13% in July. However, cooler temperatures and weakening electricity consumption will lead to a year-on-year fall in electricity consumption in September. The power sector’s gas demand dropped by 23% year on year during the first half of the month, outweighing increases in demand from industry during the period.