EU natural gas consumption is expected to increase by 6% this year compared with 2015 to around 447 Bcm, industry group Eurogas said Friday, as gas demand in Europe continues a robust trend following year-on-year growth last year.
The rise is due to increased demand for gas in power generation following signs of revival in industrial activity, as well as greater use of gas in transport, Eurogas said.
The group pointed to the rise of gas use in power generation in France, Germany, Italy and the Netherlands as a key factor supporting the expected yearly demand increase.
"In France, for example, gas demand in this sector doubled in the first half of the year, compared with the same period last year," it said.
In Germany, it added, several new gas-fired power plants have started to operate "due to the competitive price" of gas.
"This increase in the use of gas in power generation is also a quick and cost-effective way to reduce greenhouse gas emissions substantially," it said.
Eurogas also pointed to increased economic growth in parts of Europe, such as the Czech Republic.
This, it said, has led to higher gas consumption.
"However, in other countries the industrial sector remains under pressure, a symptomatic struggle to regain industrial strength in the presence of global competition," it said.
REST OF YEAR, TRANSPORTATION
The upward demand trend witnessed in the first half is set to continue through the end of 2016, Eurogas said, stressing that this was based on a "normal" winter.
"Although industrial activity remains uncertain, gas demand in power generation is expected to continue to increase moderately," it said.
Adding Switzerland to the forecast, Eurogas said it expects total consumption of 450 Bcm this year.
Eurogas said that there had been an increase in 2016 in the use of CNG.
"Europe-wide, the number of natural gas vehicles grew by 9% in 2016, compared with 2015," it said.
