Demand for natural gas has increased sharply over the past 10 years
Demand for U.S. natural gas, both domestically and from foreign exports, rose 43 percent from 2012 to 2022, according to new data from the U.S. Energy Information Administration.
Overall, that amounts to about 34.5 billion cubic feet per day (Bcf/d) over the 10-year period ended in 2022.
Demand in Louisiana and Texas grew the most, rising by 116 percent, or 16.0 billion cubic feet per day (Bcf/d), driven largely by increased demand for feedgas for liquefied natural gas (LNG) exports. A big factor was that U.S. LNG exports began in 2016 with the startup of the Sabine Pass LNG export terminal in Louisiana.
Another major factor in the rising natural gas demand was the increased natural gas-fired electric power generation. This was primarily related to coal-to-gas switching and rising demand for air conditioning.
In the Midwest, total natural gas demand grew by 35 percent between 2012 and 2022. This was due to the fact that natural gas consumption in the electric power sector more than doubled during this period, increasing by 2.3 Bcf/d. In the Northeast, natural gas demand grew by 36 percent over the same 10-year period, driven, again, by increased consumption in the electric power sector.
Overall, natural gas consumption in the electric power sector increased almost every year in the last five years because summers have gotten warmer. This has increased air-conditioning demand. Last year, the summer months were the third warmest on record in the United States, resulting in increased demand for air conditioning and higher natural gas-fired electric power generation in the U.S.
The South, excluding Louisiana and Texas, consumes the most natural gas of any region in the United States. It also has the highest natural gas consumption in the industrial and electric power sectors.
The Northeast and West consume the least natural gas in the United States, at about 12.2 Bcf/d each in 2022. When adding in pipeline exports from Mexico, the West accounts for a larger share of total U.S. demand than the Northeast.
