Russia's gas consumption up 5.2% at 521.5 bcm in 2024 - Gazprom

MOSCOW. June 5 (Interfax) - Russia's gas consumption grew 5.2% from 495.6 billion cubic meters in 2023 to 521.5 bcm in 2024, Gazprom said in an annual report.

"Gas consumption rose as weather conditions in the winter months of 2024 were relatively cold compared to the previous year. The main contributors to the growth were electricity companies and the oil industry, the housing and utilities sector and households. There was also growth in agriculture, largely thanks to the completion of regional gasification and further gasification programs," the company said.

The data provided by Gazprom for 2024 coincide with preliminary data from the Energy Ministry, which reported that Russia had consumed 500 bcm of gas in 2023. Energy Minister Sergei Tsivilev said that this had grown 4.3% last year to 521.5 bcm.

This significantly exceeded the IEA's forecast of 517 bcm.

Gazprom also said that 262 billion rubles, including VAT, had been invested in building gas pipelines, distribution stations and branch pipelines between and within localities as well as further gasification in 2024.

Gazprom also spent 38.6 billion rubles, including VAT, in the construction and reconstruction of gas distribution stations and branch pipelines as part of the Capital Construction Plan from its investment program in 2024. This resulted in the completion of five gas distribution stations and branch pipelines spanning 243.2 km in total.

The company said of the global gas market that Asia-Pacific Region countries had increased gas consumption by 6.3% or more than 55 bcm in 2024. "China is traditionally the main driver of growth: Its gas consumption rose 8% or by 32 bcm in 2024 due to increased electricity production and demand for liquefied natural gas as freight transport fuel," Gazprom said.

"One important event of 2024 was China's adoption of the Natural Gas Management and Usage Methods policy document, which replaced the Natural Gas Usage Policy in effect from 2012. According to the document, the role of gas in China's energy mix will increase and will also become instrumental in achieving climate targets. The Energy Law, passed in November 2024, describes goals and tasks for the development of China's power grid and defines the responsibility of state authorities for planning and forecasting the industry's development," the report reads.

In order to ensure its energy security, China is expected to ramp up hydrocarbon exploration and development in the oil and natural gas sector.

Gazprom said that demand for gas in India had risen 10.2% or by 7 bcm in 2024.