Natural gas demand for electricity generation, heating and industry is expected to decrease in the long term, a report just published by the Council of European Energy Regulators (CEER) has forecast.

Renewable natural gas (RNG), the penetration of natural gas in the transportation sector and regulatory measures are three factors expected to impact natural gas demand levels in Europe by 2035, the CEER report noted.

In its report, the council presents a series of scenarios concerning the electricity production, transportation, industrial and heating sectors in an attempt to forecast future natural gas demand levels.

In the electricity generation sector, natural gas-fueled units will serve as back-up options in the future, the CEER report concluded.

In the heating sector, renewable energy and greater energy efficiency will lead to a reduction in the demand for natural gas, the report noted.

As for transportation, natural gas demand is seen increasing for heavy goods vehicles and becoming the main fuel in the shipping sector.

Natural gas demand in the industrial sector is also seen decreasing, the CEER report noted.