France gas and LNG markets long-term outlook 2020

Despite Covid-19 restrictions hitting overall energy demand, France’s gas consumption will rise in 2020 as it makes up for the shortfall in the power mix caused by nuclear curtailments. Over the long term, gas will continue to play a crucial, transitional role in the energy mix: • Gas benefits from policies to eradicate coal-fired power in the short term and cuts to nuclear over the long term • Demand in the industrial sector remains sticky as some processes switch from coal to gas. The mature nature of the French industrial sector means there is little downside from further reductions in heavy industry • A large and growing LNG import capacity will absorb a significant share of the high LNG availability for Europe through the next decade as annual gas prices remain subdued • France is making significant efforts to reduce emissions through banning the sale of ICE vehicles and demand for LNG and CNG vehicles will grow markedly over the forecast period