European gas demand rose by an estimated 1% in October, its first yoy increase since Russia’s invasion of Ukraine.
Higher gas demand was primarily driven by industry and to a lesser extent by the residential and commercial sectors. Lower gas prices are supporting a gradual recovery in industrial gas use across the most gas- and energy-intensive sectors.
This is a fragile recovery and is highly dependent on the future evolution of gas prices. altogether, European industrial gas demand remains 15-20% below its pre-crisis levels.
In contrast, gas burn in the power sector remains depressed, down by 20% compared to last year. Improving nuclear availability (up by 10%) and strong increase in renewables (up by 15%) continued to weigh on gas-fired generation.
While gas inventory levels are at a record high, demand savings remains necessary to ensure a safe and secure gas balance through the heating season.
What is your view? How will gas demand evolve over the winter period? Will the recovery in industrial demand continue? Are the behavioural changes in households persist for this winter?
Source: Greg Molnar