European gas demand is set to increase by 6% year on year in 2016, reaching some 447.1 billion cubic meters.
This rise is partly 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, the European gas wholesale, retail and distribution sectors association Eurogas said in a recent report.
The reports notes increased use of gas in power generation in a number of countries such as France, Germany, Italy and the Netherlands this year.
“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 says.
Meanwhile in Germany, several new gas-fired power plants have started to operate due to the competitive price, while strong industrial growth and economic performance are boosting gas demand in countries such as the Czech Republic.
Nevertheless, elsewhere in the Eurozone the industrial sector remains under pressure, “a symptomatic struggle to regain industrial strength in the presence of global competition” the reports underlines.
All in all, “gas continues to be a positive force for reducing emissions quickly and cost-effectively in transport” leading to an increased use of compressed natural gas (CNG). Europe-wide, the number of natural gas vehicles grew by 9% in 2016, compared with 2015, the reports says.
Meanwhile, looking at heating consumption, first estimates point to slightly cooler temperatures in Europe resulting in about 3% (or 140 TWh) increase in energy demand for heating homes, businesses, and public buildings in 2016.
“Only gaseous energy and its associated infrastructure is able to handle this kind of seasonal fluctuation, without the need for investment in expensive, new infrastructure” it notes.