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US natural gas consumption hits new high

/ Wednesday, 18 December 2024 /

On December 13th,according to the Natural Gas Yearbook released by the US Energy Information Administration,natural gas consumption in the United States increased by 1%in 2023,reaching a new high of 89.4 billion cubic feet per day(Bcf/d),and will continue to grow in the first nine months of 2024.The 1%increase in natural gas consumption in 2023 is due to a 6.7%(2.2 Bcf/d)increase in consumption in the electricity sector(the largest natural gas consuming sector).The average natural gas consumption for power generation in the United States is 35.4 Bcf/d,accounting for 40%of the country’s natural gas consumption in 2023.

By contrast,natural gas consumption in the residential sector reached its lowest level in five years in 2023,averaging 12.4 billion cubic feet per day,a decrease of 8.9%(1.2 billion cubic feet per day)from 2022 and the largest year-on-year decline in the past five years.The natural gas consumption of the commercial sector decreased by 4.8%(500 million cubic feet per day).

The summer of 2023 is the hottest summer on record in the Northern Hemisphere,leading to an increase in natural gas consumption in the power sector to meet air conditioning demand.Similarly,the temperatures in January and February 2023 were higher than normal,resulting in a decrease in space heating demand for residential and commercial sectors compared to the past five years,and a decrease in total natural gas consumption growth in 2023 compared to 2022.

The natural gas consumption trend observed in 2023 is expected to continue in September 2024.According to our monthly data,as of September 2024,the average natural gas consumption in the United States was 8.98 billion cubic feet per day,an increase of 1%compared to the same period in 2023.This growth is driven by a 4%increase in electricity sector consumption(160 million cubic feet per day),with an average consumption of 3.81 billion cubic feet per day,accounting for 42%of US natural gas consumption as of September 2024.

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