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The Impact of Rising Gas Prices on Gas Consumption in the Netherlands

NOSDowing to rising gas prices, households are less likely to turn on the heating

NOS Nieuws•vandaag, 00:01

Gas consumption in the Netherlands has fallen again. Consumption in the first half of this year was 10 percent lower than in the same period a year ago. Industry, power stations and households in particular consumed less natural gas, the Central Bureau of Statistics (CBS) reports. A total of 15.7 billion cubic meters of natural gas was used in six months.

The decrease is mainly due to lower gas consumption by the chemical industry, a large industrial user of gas. This was 18 percent lower than last year. The paper industry reduced consumption by 34 percent. In addition, households used gas more economically and temperatures were relatively mild in the first months of this year. Households used 4 billion cubic meters of gas in the past six months.

Other sources

Rising energy prices have caused all gas consumers to behave differently since last year, explains researcher Luuk Hovius of Statistics Netherlands. “Industries that are heavy users of natural gas, such as chemical companies and the paper industry, could no longer cover their costs due to rising gas prices and have switched to other energy sources such as electricity.”

Not only companies have used less gas, households have also used gas more sparingly. They consumed 13 percent less gas than in the first half of 2022. “High energy prices have caused people to behave differently,” says Hovius. “People are less likely to turn on the stove. It is also possible that households still have to deal with certain contracts and therefore pay a high gas price.”

Fall continues

The new figures show that the decrease in gas consumption will continue after record year 2022. Last year, a quarter less gas was used in the Netherlands than the year before. Households and large industrial companies in particular reduced their gas consumption, prompted by the rise in gas prices. In 2022, a total of 31 billion cubic meters of gas will be consumed, the lowest amount since 1972.

The extraction of natural gas, both on land and at sea, is also declining further. In the first half of 2023, 38 percent less gas was produced on land than a year earlier. Production fell from 4.3 billion to 2.7 billion cubic meters of gas. At sea, this was a decrease of 19 percent. At the same time, the gas storages were 78 percent full.

2023-08-23 22:01:02
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