German industry sees gas consumption fall by a fifth

The German industrial sector saw gas consumption fall by nearly a fifth in September 2022, nearly five times the 4 per cent drop seen in the same month last year.

These are the new findings by a team of researchers at the Berlin-based Hertie School’s Centre for Sustainability, which also showed that German private households and smaller commercial customers made substantial reductions in gas consumption starting in March, reaching as much as 36 per cent in September of this year.

Against the backdrop of Russian gas supply freezes and the ensuing energy crisis, manufacturing industries saved 6TWh in its processes in absolute terms during September, saving 19 per cent year-on-year compared to September 2021.

To cope with the high cost of energy, industry operators charged more for their output, switched to alternative fuels or substituted energy-intensive products with imports.

The International Energy Agency estimates that Europe-wide industrial gas demand fell by 25% in the third quarter compared to the same time last year. Analysts say widespread shutdowns were likely the reason for the drop, because efficiency gains alone would not produce such savings. They fear that some shuttered plants may never reopen, meaning the European industrial base may end up severely weakened if high energy costs persist.

A recent survey by the German Chamber of Commerce found that nearly one in five energy-intensive industries have scaled down production or their offerings, while one in 12 is considering shifting production somewhere else, in particular companies in the automotive industry, at 17%.