Page 7 - GLNG Week 40 2022

GLNG COMMENTARY GLNG

Most of this reduction was driven by industry, From the two really big gas consumers, Italy
as households do not consume much gas in and Germany, the former has made very little
September and gas reductions were not appar- reduction (-2%), while the former has cut gas
ent in the power sector. For the winter, actual use by more than the EU average (-11%).
household demand reductions and the lowering According to Bruegel most of the big gains
of gas-burn in the power sector (through fuel in reducing gas consumption have been made
switching or electricity demand reduction) will by industry and households, with Finland,
determine by how much industrial gas demand the Baltics and Sweden standing out, where
will have to be cut.” industry and households account for almost
Drilling into the details and the size of gas all the savings. The laggards are Spain, Austria,
consumption reduction comparing the 2019- France, Greece, Croatia and Portugal, where
2020 average and 2022 year to date varies widely power generation has caused an increase in gas
between countries. The Baltic states and Sweden consumption.
have all managed to cut their gas consumption However, as bne IntelliNews reported, Portu-
by more than 20%, while those states that import gal, Spain and Greece do not consumer Russian
no Russian gas – especially Spain and Portugal gas and Portugal in particular is almost entirely
– have seen barely any change; indeed, Spain, dependent on LNG imports under long-term
Greece, Slovakia and Croatia have all increased contracts signed well before the energy crisis
their gas consumption mildly in 2022 compared started, and so has been insulated from the soar-
to the previous two years. ing price of gas.™

Week 41 14•October•2022 www. NEWSBASE .com P7