Alina TEODORESCU

Alina TEODORESCU

EU carbon market analyst

IEA: Gas Demand in European OECD States Expected to Increase by 3% This Year

Power sector remains the main driver with an estimated 10% rise

31 October 2025

According to the International Energy Agency (IEA), natural gas consumption in European OECD countries rose by nearly 9% during the first quarter of 2025, driven by colder weather and lower renewable power generation. 

Demand continued to grow in the second and third quarters, albeit at a slower pace of just under 1%, resulting in an overall increase of about 5% in the first nine months compared to the same period last year, amid lower hydro and wind output.

The strong growth recorded in the first quarter is expected to be partially offset by the continued recovery and expansion of renewables in the fourth quarter, leading to a projected overall increase of nearly 3% for the full year.

The main driver of this growth is the power sector, where gas demand for electricity generation is expected to rise by around 10% in 2025. In contrast, industrial gas demand is projected to decline by 1.5% due to higher gas prices.

Looking ahead, European gas demand is forecast to decline by about 2% in 2026 as the continued expansion of renewables reduces gas burn in the power sector. Between 2024 and 2030, total gas demand is projected to fall by roughly 10%, led by declines in Northwest European markets, while consumption in Eastern Europe may increase as coal- and lignite-fired power plants are phased out.