Gas demand in European countries fell by 7% last year to the lowest level since 1995, TASS reports citing Gas Market Report by the International Energy Agency (IEA).

"Natural gas demand in OECD Europe fell by 7% (or 35 bcm) in 2023 to its lowest level since 1995. The decline was almost entirely concentrated in Q1-Q3 2023, while gas consumption remained just below its 2022 levels in Q4," the report reads.

The power sector alone accounted for 75% of the demand reduction, as lower electricity demand together with the continued expansion of renewables and improving nuclear availability weighed on gas-fired power generation.

Natural gas consumption in industry increased marginally in 2023 due to the continued decline in natural gas prices supported a moderate recovery in industrial sector gas demand.

"Our forecast expects natural gas demand in OECD Europe to increase by a moderate 3% in 2024, as the decline in gas-to-power demand is offset by higher gas use in the residential, commercial and industrial sectors," the agency said.