PARIS, Nov 5 (Reuters) - Higher energy prices are expected to reduce consumption in Europe this winter, with some demand effects already recorded in the third quarter, French utility Engie's Chief Financial Officer Pierre-Francois Riolacci said on Thursday.
European gas and electricity prices have soared this year as the US-Iran war disrupts traffic in the Strait of Hormuz, a main route for the global oil and gas trade.
"We have seen volumes especially in gas under pressure during the third quarter, including with large customers," Riolacci said on an earnings call after Engie's third quarter report.
European chemicals companies and other industries with small profit margins due to high raw materials costs felt the earliest blows from the price spike, with some still reeling from years of inflationary pressure.
Europe's chemicals industry is now facing the most severe downturn in decades, with weak demand, high energy costs and mounting regulation likely to spur further mergers across the sector.
"This is something we saw in 2022 and 2023 so there is some sensitivity to gas demand...We do expect to see during the winter a bit less consumption," Riolacci said.
European industry faced a sharp jump in energy costs following Russia's 2022 invasion of Ukraine which left countries scrambling to replace Russian gas supply.
Reporting by Forrest Crellin; Editing by Kirsten Donovan
Source: Reuters