Germany posts second consecutive year-on-year drop in gas consumption

Germany posted a second consecutive year-on-year decline in gas consumption for the week ended Oct. 27, with usage remaining well below pre-crisis levels, data from the country's energy regulator showed Nov. 1.

According to Bundesnetzagentur data, total consumption averaged 2.09 TWh/d, down 8% from the same week in 2023 and 20% lower than the pre-crisis average for the week from 2018 to 2021.

It followed a 7% year-on-year drop in consumption in the week to Oct. 20 after six weeks of consecutive year-on-year increases.

Gas consumption in Germany has stayed significantly below pre-crisis levels from 2022 to 2024, with demand spiking only during unseasonably cold weather, most recently in January and April.

It hit multiyear lows earlier in the summer.

Industrial gas consumption -- including the power generation sector -- averaged 1.37 TWh/d in the week ended Oct. 27, flat year over year.

However, household and small business gas use dropped sharply year on year to an average of 0.72 TWh/d, a 19% decline compared to the same week in 2023.

The regulator said that while gas flows to Germany were stable, "economical" gas consumption remained important.

Price levels

The drop in gas consumption levels comes with European gas prices having reached 2024 highs in recent days.

Platts, part of S&P Global Commodity Insights, assessed the benchmark Dutch TTF month-ahead price at Eur43.47/MWh on Oct. 25 -- the highest assessment since December 2023.

It has since fallen back, with Platts assessing the contract at Eur39.85/MWh on Oct. 31.

German gas storage sites also remain well-filled. According to data from Gas Infrastructure Europe, stocks had been built to 98% of capacity as of Oct. 30.

Germany met its final gas storage target of 95% fullness for 2024 at the end of August, well ahead of its self-imposed Nov. 1 deadline.

However, the German gas storage industry group INES has questioned whether current market signals would provide enough incentive to meet filling targets in the coming two storage years.

Germany, which has the largest gas storage capacity in the EU, set strict storage targets in mid-2022, exceeding those agreed at the EU level.

The Gas Storage Act, effective until at least April 2027, requires Germany to fill its facilities to 85% by Oct. 1, 95% by Nov. 1 and to have stocks built to at least 30% by Feb. 1 each year.