Europe gas demand long-term outlook H2 2020

European gas demand in 2020 was shaped by a mild winter, record low gas prices and of course the coronavirus pandemic. Despite further lockdowns in early-2021, gas and power demand is now showing more resilience and will recover to 520 bcm in 2021. In the power sector gas will continue to be supported by its relative competitiveness to coal into the early 2020s. However, measures to decarbonise energy use in buildings gather pace in the 2030s and the EU will struggle to meet its ambitious Green Deal carbon targets without renewed emphasis on hard-to-decarbonise industrial sectors. As a result, gas demand in industry will be under increasing pressure towards the end of the 2030s. These factors combine to reduce gas demand to 463 bcm by 2040 and 383 bcm by 2050. On the other hand LNG will increasingly be adopted in maritime transport.