Domestic Gas Demand: a Trend towards Stagnation?

Gas demand in Russia has been stagnating since 2011, although all projections had promised its growth. Since 2006, demand for natural gas from industry and utilities sectors as well as from households has changed little despite significant transformations in the national economy. Electric power sector was the only segment with pronounced dynamic changes that set the gas demand trend to the whole country.

As for the current projections, the state bodies see the prospects of gas demand as highly positive, notwithstanding the negative tendencies of the past. Foreign analysts change their forecasts from year to year predicting either growth or recession.

In the study “Domestic Gas Demand: a Trend towards Stagnation?” VYGON Consulting experts analyzed in detail the historical dynamics of gas consumption in Russia, broken down by main sectors. The authors also proposed gas demand scenarios until 2030: “Baseline” and “Gas Saving” scenarios, which are more pessimistic than the officially published Russian estimates and forecasts of foreign agencies.

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