Gas consumption falls in several regions of the world

Gas consumption fell sharply in January in several parts of the world, particularly in the European Union and the United Kingdom, due to mild temperatures and the rise of renewable energy.

Partagez:

A report by the Gas Exporting Countries Forum (GECF) released on Wednesday, February 16, 2023, indicates that gas consumption fell sharply in January in several regions of the world. In fact, the European Union and the United Kingdom have seen gas consumption fall by 19% and 16% respectively. This was largely due to above normal seasonal temperatures, which reduced heating demand. In addition, energy conservation efforts and high European market prices have contributed to curbing gas consumption in the EU. The report also highlights that hydro, wind and solar power generation have grown significantly in the UK.

 

The impact of weather conditions on gas consumption

The GECF report, which is based on the Opec report, points out that weather conditions have a significant impact on gas consumption. In the United States, mild temperatures and the industrial slowdown are cited as reasons for an 8.8% drop in gas consumption to 92 bcm. The report also reviews several Asian countries, but on heterogeneous comparative bases.

 

Changes in gas production in Europe

The report highlights that in the European Union, gas used in power plants decreased by 13% in January over a year, to the benefit of coal (+24%) and hydro (+8%). In addition, Russian gas deliveries via pipelines fell by 58% compared to the average for the period 2019 to 2021, while Norwegian gas became the leading pipeline supplier in 2022, providing 47% of deliveries.

 

Forecasts for the liquefied natural gas market

The global liquefied natural gas market, under pressure since the war in Ukraine, is expected to remain tight until the end of 2025 due to strong European demand. However, it could find itself in overcapacity after that period, according to the Institute for Energy Economics and Financial Analysis (IEEFA) think tank.

 

The GECF report is the first of its kind for this group of gas producing countries formed around Qatar. It highlights changes in gas consumption and production in several regions of the world, and offers forecasts for the liquefied natural gas market. GECF members, which include twelve member states, claim 72% of the world’s reserves and 44% of the world’s sold gas production.

The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.
Belgrade is currently finalising a new gas contract with Russia, promising Europe's lowest tariff, according to Srbijagas General Director Dusan Bajatovic, despite Europe's aim to eliminate Russian imports by 2027.
TotalEnergies and QatarEnergy have won the Ahara exploration licence, marking a new stage in their partnership with SONATRACH on a vast area located between Berkine and Illizi.
After four years of interruption due to regional insecurity, TotalEnergies announces the upcoming resumption of its liquefied natural gas project in Mozambique, representing a $20bn investment.
The French group has acquired from PETRONAS stakes in several licences covering more than 100,000 km² off Malaysia and Indonesia, consolidating its Asian presence and its exposure to the liquefied natural gas market.
In response to rising summer electricity consumption, Egypt signs import agreements covering 290 shipments of liquefied natural gas, involving major international firms, with financial terms adjusted to the country’s economic constraints.
Egyptian fertilizer producers suspended their activities due to reduced imports of Israeli gas, following recent production halts at Israel's Leviathan and Karish gas fields after Israeli strikes in Iran.
A report identifies 130 gas power plant projects in Texas that could raise emissions to 115 million tonnes per year, despite analysts forecasting limited short-term realisation.
Japanese giant JERA will significantly increase its reliance on US liquefied natural gas through major new contracts, reaching 30% of its supplies within roughly ten years.
Sustained growth in U.S. liquefied natural gas exports is leading to significant price increases projected for 2025 and 2026, as supply struggles to keep pace with steadily rising demand, according to recent forecasts.
Shell is expanding its global Liquefied Natural Gas (LNG) capacities, primarily targeting markets in Asia and North America, to meet rising demand anticipated by the end of the decade.