Natural gas in Europe - statistics & facts
Natural gas is the second-most important source of primary energy in Europe following crude oil. However, the continent’s indigenous resources are limited and demand has been predominantly met through trading with neighboring Russia. This led to immediate supply issues and changes to governmental policies following the Russia-Ukraine war. As a result of this and decarbonization efforts, natural gas was recently overtaken by wind in the European Union's power production and is now only its third-largest source.
An outlook from 2024 suggests that OECD Europe’s natural gas consumption is forecast to decrease by more than 15 percent until the end of the decade, with LNG expected to cover much of this demand.
The role of natural gas in Europe’s energy supply chain
Natural gas use is especially prevalent in the EU's heating sector, being the main fuel used it accounts for 31.5 percent of gross heat generation, as well as roughly 20 percent of final energy consumption overall. Germany is by far the European country most reliant on gas heating. By comparison, some of the countries with the highest gas share in power generation include Malta and Ireland, which produce 50 percent or more of their electricity through natural gas turbines. Since 2000, gas power capacity in Europe has grown by more than one third not only because of greater energy demand, but also because of the phasing-out of coal.LNG overtakes piped gas as most traded gas form
Russia used to play a critical role in satisfying Europe’s natural gas demand, especially for parts of the continent where pipeline networks made trading more convenient. The Baltic Sea-crossing Nord Stream pipeline and Ukraine transit network were the main trading routes used before sabotage and war activity halted their use. In the year following the outbreak of the war, the share of Russian piped gas in Europe’s natural gas supply fell to just 10 percent. As some pipelines have become unusable, LNG trading is now the main means of importing natural gas.An outlook from 2024 suggests that OECD Europe’s natural gas consumption is forecast to decrease by more than 15 percent until the end of the decade, with LNG expected to cover much of this demand.
