Report examines natural gas use in power sector
An S&P Global Platts report recently determined the United States likely set a new daily July record of 44.5 billion cubic feet (Bcf) for natural gas consumption by electric power plants.
The analysis showed the power sector natural gas consumption exceeded the previous record of 43.1 Bcf set on July 16, 2018, on five days in July. Higher-than-normal temperatures and relatively low natural gas prices contributed to increased natural gas consumption by electric generators.
Officials attribute the higher electricity consumption to the demand for air conditioning during a heat wave from July 15 through July 22 – adding it drove increased power generation, especially from natural gas-fired generators.
Most states east of the Rocky Mountains experienced warmer-than-normal weather in the days leading up to the heat wave.
Many natural gas-fired generators have come online throughout the country, recently, especially in the PJM Interconnection, the regional transmission organization (RTO) responsible for managing wholesale electricity in 13 states and the District of Columbia.
The Energy Information Administration’s Preliminary Monthly Electric Generator Inventory data revealed more than 12 gigawatts (GW) of new natural gas-fired electric generation capacity, primarily highly efficient combined-cycle units, have entered service in PJM since the beginning of 2018.
