Consumption

Final consumption refers to the use of natural gas by consumers for processes that do not involve its conversion or transformation. Final consumption may include the use of natural gas by district heating companies for heat generation, by industry in production processes, or by households for cooking and residential heating, etc.

According to the National Energy and Utilities Regulatory Commission (NEURC), over the past five years final natural gas consumption in Ukraine has fluctuated between 27-29 bcm per year. At the same time, the corresponding figure amounted to 38.6 bcm in 2014 and 50.7 bcm in 2012. The decline in consumption is associated with the following factors:

• the temporary occupation of the Autonomous Republic of Crimea and parts of Donetsk and Luhansk regions - since 2014, statistical data on consumption in these territories have either been unavailable or incomplete;
• an increase in retail natural gas prices during 2015-2020;
• regulatory changes, including the revision of natural gas consumption norms applied to consumers without gas meters;
• a decline in industrial activity - in 2012, industry accounted for 47% of total gas consumption, while in 2020 this figure decreased to 22.1%.

Priority objectives in the area of gas consumption include its further reduction through improving energy efficiency in households and industry, as well as ensuring the most accurate measurement of natural gas use through full metering coverage (i.e. installation of natural gas meters for all consumers).