Europe's Industrial Gas Use Expected to Decline Amid Tighter Market and High Prices

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EU Industry,Gas Consumption,Energy Prices

Despite a slight increase in industrial natural gas consumption this year, analysts and industry officials predict that Europe’s heavy industry will likely return to reducing gas use next year due to a tighter market and elevated prices. The report highlights the ongoing struggles faced by European companies due to high energy costs and weak economic conditions.

Despite a slight uptick in industrial consumption of natural gas this year, Europe’s heavy industry is likely to return to curtailing gas use next year amid a tighter gas market and higher prices, analysts and industry officials have told Bloomberg. Since the 2022 energy crisis, European industry has been squeezed amid sky-high energy costs and weak industrial demand in weakening economies.

Europe’s industrial gas demand is recovering as prices normalized and is also contributing to demand growth, even though it remains well below its pre-crisis levels, the IEA said in its annual Global Gas Security Review. However, after this year’s uptick in European industrial gas demand, consumption is set to fall in the coming years, as companies will continue to struggle with higher energy costs compared to other regions, and weaker economies.

 

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