T he sun is shining, birds are singing and natural gas demand destruction goes on unabated in the EU. One might ask here: why have TTF gas prices fallen below 70 Eur/MWh (1) actually to even lower levels than in Asia? Mainstream media tries to spin the story that this is largely due to mild weather, energy saving and a rise in US LNG deliveries — and this is where thinking usually stops. According to Irina Slav writing for oilprice.com though:
The first red flags appeared last year: much of the gas consumption decline in Germany that was praised by politicians actually came from demand destruction among industrial users because of prohibitive prices. In other words, gas demand in much of Europe last year fell because it was destroyed and not so much because everyone suddenly became conscientious with their gas use. But demand destruction is not good for the economy. It means shutdowns of factories and layoffs.
In other words: Europe is deindustrializing as expected, and simply shed 20% of it’s gas consumption as a result. Mission accomplished.