Spanish industrial gas burn edges lower in September

: Natural gas
20/10/09

Spain's industrial gas consumption remained lower than a year earlier in September, but a sharp rise from August resulted in the the year-on-year deficit shrinking to its narrowest this year.

Industrial demand fell to 16.7TWh last month from 17TWh a year earlier, but this was the smallest year-on-year drop so far this year. Demand of 14.1TWh in April — when Spain introduced stringent lockdown measures to contain the Covid-19 pandemic — was down sharply from 17.7TWh a year earlier. Demand in January-February, before the widespread outbreak of Covid-19, increased compared with a year earlier.

Demand from the refining sector and other industries rose by 2pc and 1.5pc, respectively, on the year in September, while consumption from the services and power sectors held steady.

Demand from the paper industry fell the most in relative terms — similar to August — dropping by 9pc, or 100GWh. Gas represents two-thirds of the fuel used by the paper industry in Spain, mainly at cogeneration units, according to Spanish paper industry association Aspapel. And while Covid-19-related measures are likely to have had some effect on the industry, new cogeneration retributive parameters introduced before the start of the country's lockdown may also have discouraged strong gas consumption.

Industrial consumption increased by over 9pc in September compared with a month earlier, reversing the month-on-month fall in August, which was the first since April.

The rise in industrial consumption in September from a month earlier lifted Spain's overall conventional demand — from households, small businesses and industry, but excluding the power sector — to 606 GWh/d from 527 GWh/d in August, although it was lower than 620 GWh/d in September 2019.

But recent plans to introduce further and more restrictive measures to stop a renewed spread of Covid-19 infections in the country could continue to curb industrial demand in the coming months.

Spain's Covid-19 infection rate has been rising since the country's lockdown ended on 20 June. The Spanish government recently announced that it would impose a lockdown on Madrid, although a court rejected the ratification of the measures. But the government today declared a state of emergency in Spain's capital, allowing it to circumvent the court's rejection of the measures.

By Silvia Fernandez Martinez

Spanish industrial gas consumption			TWh
Sector	Sep 20	Sep 19	Aug 20

Services	0.8	0.8	0.7
Paper	1.3	1.4	1.1
Coke and oil refining	3.2	3.1	3.3
Other industries	1.5	1.5	1.3
Power producing industries	2.4	2.4	2.3
Construction	2.0	2.0	1.6
Metals	1.2	1.3	0.9
Food	1.8	1.9	1.8
Textiles	0.2	0.2	0.1
Chemical/Pharma	2.3	2.4	2.2
Total	16.7	17.0	15.3
— Enagas

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25/12/19

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W Australia's gas surplus outlook strengthens: Aemo

25/12/19

W Australia's gas surplus outlook strengthens: Aemo

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Energy Transfer halts plans for Lake Charles LNG

25/12/18

Energy Transfer halts plans for Lake Charles LNG

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US House passes bill to expedite permitting

25/12/18

US House passes bill to expedite permitting

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25/12/18

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