U.S. natural gas consumption is set to decline 3% year-on-year in 2020, Kallanish Energy learns from the EIA’s latest Short-Term Energy Outlook (STEO).
The August report estimated gas consumption to reach 82.4 billion cubic feet per day (Bcf/d) this year. The largest decrease in consumption will come from the industrial sector, which the EIA forecasts will average 22 Bcf/d in 2020 – down by 1 Bcf/d from 2019 – as a result of reduced manufacturing activity.
The drop in total U.S. consumption also reflects lower heating demand in early 2020, contributing to residential and commercial demand in 2020 averaging 12.8 Bcf/d and 8.8 Bcf/d, respectively. These are contractions of 0.9 Bcf/d and 0.8 Bcf/d in demand, compared to 2019 levels.
In July, consumption for power generation is estimated to have increased to 43.6 Bcf/d, the EIA said. This is the highest than any month on record.
Demand from the industrial sector declined 1.4 Bcf/d in July, compared with the previous year, due to slower economic activity. Meanwhile, liquefied natural gas exports also fell substantially as the world battles the Covid-19 pandemic.
U.S. LNG exports decreased 5 Bcf/d, or 62%, from their peak in January 2020. (See related story)
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