European gas decline mainly due to reduced gas-fired power demand

European gas demand was down by almost 10 per cent year-on-year in the first ten months of 2023. Demand remains well below pre-crisis levels, raising questions as to whether some demand losses may be permanent. However, a closer analysis highlights remarkable differences between the beginning and the end of the year. Over half of the demand reduction occurred in Q1 as the mild winter continued, while reduced gas-fired power demand took over as the driver for reduced consumption in Q2 and Q3.