US industrial natural gas consumption expected to hit record highs in 2026, 2027: US Energy Administration

Washington DC [US], May 18 (ANI): Industrial natural gas consumption in the United States is expected to reach record highs through 2027, according to the latest Short-Term Energy Outlook (STEO) released by the U.S. Energy Information Administration (EIA).

The report stated that industrial natural gas consumption averaged a record 23.6 billion cubic feet per day (Bcf/d) in 2025, surpassing the previous record of 23.4 Bcf/d recorded in 2023.

According to the outlook, consumption is expected to continue rising gradually in 2026 and 2027 as manufacturing activity linked to natural gas usage increases.

"In our forecast, consumption gradually increases further in 2026 and in 2027 as we expect the natural gas-weighted manufacturing index to also rise slightly over this period," the report stated.

The EIA forecast showed that average annual industrial natural gas consumption is expected to increase by 1.2 per cent or 0.3 Bcf/d in 2026 and by 1.7 per cent or 0.4 Bcf/d in 2027.

However, the report noted that the pace of growth is expected to remain gradual because rising industrial activity is being partly offset by efficiency improvements.

"Continued efficiency improvements reduce the amount of natural gas needed per unit of output," the report added.

According to the EIA, a large portion of industrial natural gas demand in the United States comes from the chemicals sector and other manufacturing industries. The report stated that the chemicals subsector remains the largest industrial consumer of natural gas.

Natural gas is used in the chemicals industry for generating heat, producing electricity and serving as a feedstock for products such as methanol, fertilizers and hydrogen.

The report also highlighted the seasonal trend in industrial gas demand. Industrial consumption generally remains higher during winter months due to increased heating requirements at industrial facilities.

Industrial natural gas consumption averaged 26.1 Bcf/d in January 2026, and the EIA expects it to rise further to 26.7 Bcf/d in January 2027.

In comparison, demand is expected to remain lower during summer months.

The report forecast that consumption in June 2026 and June 2027 will average around 22.6 Bcf/d, making it the seasonal low point.

The EIA noted that industrial natural gas consumption has remained relatively flat since 2018, except during the disruption caused by the COVID-19 pandemic in 2020 and the subsequent recovery in 2021 and 2022.

The report stated that relatively low natural gas prices in the United States during the mid-2010s encouraged expansion in energy-intensive industries such as petrochemicals, ammonia production and refining, particularly in the Gulf Coast region.

As a result, industrial natural gas consumption now operates at a structurally higher baseline level, although the pace of new industrial capacity additions has slowed in recent years. (ANI)

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