In the two years since Russia launched its invasion of Ukraine, European demand for natural gas has dropped by 20 percent.

European gas demand is now at its lowest point in a decade, according to the Institute for Energy Economics and Financial Analysis, as Germany, Italy, and other countries ramp up renewable power and cut energy use to cope with a shrinking supply of Russian gas. Last year, pipeline imports from Russia dropped in half, as Europe, for the first time, drew more power from wind than from natural gas.

To help disentangle itself from Russia, Europe has also begun building new terminals to import liquefied natural gas from overseas, though falling demand may render much of this new infrastructure unnecessary, analysts say. Eight import terminals have come online since Russia invaded Ukraine, and another 13 are expected to enter into service by 2030, but demand for liquefied natural gas is set to peak next year.

“In the last two years, Europe has transformed its energy system,” said Ana Maria Jaller-Makarewicz, an analyst at IEEFA. “This is the time to examine which policies worked and continue with them while putting in place new strategies that could give Europe the edge to manage risks in the future.”

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