Engie Expects Europe's Winter Energy Use to Drop
Engie's chief financial officer says higher energy prices from the Strait of Hormuz disruption are likely to cut European consumption this winter.
Updated on Nov. 5, 2026 in Oil and Gas
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Engie CFO Pierre-Francois Riolacci expects higher energy prices to reduce European energy consumption this winter. European gas and electricity prices soared this year as the US-Iran war disrupted traffic in the Strait of Hormuz, a main route for the global oil and gas trade.
Why it matters
The disruption in the Strait of Hormuz has pushed up costs for gas and electricity across Europe, with chemicals companies and other low-margin industries feeling the earliest impact. Europe has faced a similar demand response before, following Russia's 2022 invasion of Ukraine.
Engie reported third-quarter results showing gas volume pressure, including among large customers. No specific volume or revenue figures were included in the source extraction.
The players
Engie
Engie is a French multinational energy company that operates in power generation, gas infrastructure and energy services across Europe and beyond.
Pierre-Francois Riolacci
Pierre-Francois Riolacci is the chief financial officer of Engie, the French energy group, and spoke publicly about the expected drop in winter energy demand.
The details
Engie's chief financial officer, Pierre-Francois Riolacci, said higher energy prices are expected to reduce consumption in Europe this winter. European chemicals companies and other industries with thin profit margins felt the earliest blows from the price spike, and Europe's chemicals industry is facing its most severe downturn in decades.
Timeline
2022: Russia's invasion of Ukraine sharply raised European energy costs.
This year (2026): European gas and electricity prices soared as the US-Iran war disrupted Strait of Hormuz traffic.
Third quarter 2026: Engie reported gas volume pressure, including with large customers.
This winter (2026-27): Higher energy prices are expected to reduce European energy consumption.
Market Landscape
Europe's energy-intensive industries have repeatedly absorbed price shocks since Russia's 2022 invasion of Ukraine forced countries to replace Russian gas supply. The current disruption in the Strait of Hormuz is testing that adjustment again, and weak demand and high energy costs are likely to spur further consolidation across the chemicals sector.
Households and businesses in Europe may face higher gas and electricity bills while prices stay elevated. Industries with thin margins, such as chemicals producers, are the most exposed to cost increases and potential job cuts.
The takeaway
Energy costs remain tied to geopolitical chokepoints, so businesses and households exposed to imported gas should plan for continued price volatility. Watching winter consumption data from European utilities will show how much demand is actually being cut.
Further reading
For more on how supply disruptions move global prices, see the Oil and Gas section.
Live Poll
Are you cutting back on heating or electricity use this winter because of rising energy prices?
