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European gas demand: signs of recovery

Editor by Editor
3 years ago
min read1 min
European gas
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After falling close to 20% under the lockdowns, European gas demand is showing first signs of recovery in June, with a flat yoy growth just above 0%.

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This has been primarily driven by the power sector. despite electricity consumption falling by close to 10%, gas-fired power-generation was on the rise, at the expense of coal and lignite and capturing some market share left by plummeting French nuclear (down by ~25%).

This has been particularly spectacular in Germany, where gas-fired power-generation jumped by an impressive 77% and was even outcompeting lignite in the first half of June. Lower solar and wind output was also a factor.

What is your view? Are we seeing the start of the recovery for European gas? Most of the coal-to-gas switching potential has been exhausted, but could be more lignite being beaten out by the record low gas prices?

Connect with Greg on LINKEDIN

Tags: European gas demandEuropean gas pricesGreg Molnar
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