Europe’s energy crisis: What factors drove the record fall in natural gas demand in 2022?

In the wake of Russia’s invasion of Ukraine and a surge in energy prices, natural gas demand in the European Union fell in 2022 by 55 bcm, or 13%, its steepest drop in history. The decline is the equivalent to the amount of gas needed to supply over 40 million homes. What were the main drivers behind this decline? In this commentary we assess how changes in the energy mix, economic activity, weather, behavioural changes and other factors were responsible for this dramatic shift in natural gas consumption.