Reuters said in a report that demand for industrial gas in Europe fell in the third quarter of 2022 due to plant closures amid fears that some of them will never reopen.
Gas-intensive industries such as aluminum, fertilizers and chemicals are at risk of companies moving production to places with cheap gas, such as the US, where gas is about five times cheaper than in Europe, the agency said.
She added that while lower energy consumption in Europe is helping to weather the crisis, executives and economists are warning that the European industrial base could be seriously weakened if high energy prices persist for an extended period.
According to a senior E.ON official, many companies are simply shutting down production, which could lead to a downturn in the industry in Europe.
This is evidenced by the manufacturing PMI data for October 2022, showing a continued decline in manufacturing, indicating that Europe is heading for a recession.
Source: Reuters.